BLACK SWAN GOLD MINES LTD. PROGRESS REPORT
VANCOUVER, Sept. 9 /CNW/ - Black Swan Gold Mines Ltd.
Trading Symbol: TSE - BSW
BERLIN - BSM
FRANKFURT - BSM
Black Swan Gold Mines Ltd. is pleased to report on its recent progress.
The new, streamlined management, combining the organizations in Canada
and Brazil, includes Bryce Porter as President, Dr. Augusto Kishida as Vice
President, Exploration, Sylvio Baeta Neves as General Manager in Brazil and
Robert Anderson as Controller. Costs have been markedly reduced.
Work has commenced to identify opportunities to acquire advanced
projects, near to the production stage, that have potential for development
into operations that are profitable at today's market prices. Black Swan is
using its own personnel and consultants to analyze these opportunities and has
a network of professionals, experienced in South America, available on a
consulting basis for this exercise.
Black Swan has also commenced evaluations of three areas selected from
its portfolio of diamond properties in the State of Minas Gerais, Brazil.
The Serra da Canastra diamond project is located some 360 kilometres west
of the city of Belo Horizonte and consists of 14 blocks covering 12,000
hectares positioned to cover six rivers and their related valley deposits.
There have been previous workings in part of the area, which is known for
relatively large gem stones. At present, the work program is within the Santo
Antonio do Delfinopolis holdings at Serra da Canastra.
Along the Rio Abaet‚, that runs into the Rio Sao Francisco some 200
kilometres north-west of Belo Horizonte and north of the town of Trˆs Marias,
the Company holds 21 contiguous blocks totalling 18,000 hectares. The Sao
Francisco and Abaet‚ rivers have a long history of placer diamond operations
and the Abaet‚ river, in particular, is known for large stones (including the
largest recovered in South America) and for coloured varieties. Work is being
focused on the middle and lower portions of the Rio Abaet‚.
Investigative work is also being carried out on the Company's holdings on
the Rio Jequitai that lies to the east of the Rio Sao Francisco and drains
into it. The holdings combine nine blocks totalling 7,000 hectares in an area
with a long history of diamond production from small garimpeiro operations.
The current work program for diamonds includes environmental reviews of
each of the above areas. Specific plans are being developed for bulk sample
test work to be commenced later this year.
While interesting targets have been established, exploration of the
Company's gold prospects has been cut back to respond to current market
conditions. Depending on recovery of the market, future exploration of these
gold prospects will proceed on a selective, prioritized basis, preferably with
joint venture partners.
At present, Black Swan has cash of $12 million and the book value of its
mineral properties and capital assets, which is consistent with a recent
independent valuation, is $38 million. The Company has no debt other than
normal accounts payable. The $51 million book value of its shareholders'
equity represents over $1.00/share of which 24 cents/share is cash.
In the opinion of management, the market is significantly undervaluing
Black Swan's stock relative to the cash and assets it holds and its potential.
The new management will take all steps necessary to restore value to the stock
and develop shareholder value.
THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE
CONTENTS OF THIS NEWS RELEASE.
For further information: Bryce M.A. Porter, President (604) 689-2599, Fax: (604) 662-8429, Web Site: www.blackswan.com
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