SouthernEra Resources Limited
- Phase 1 of the Leopard Fissure Mining Commences
- 50 tph DMS Treatment Plant Ordered
- Exploration Budget Approved by Marsfontein Joint Venture
- October 1998 Results at Marsfontein and Angola
- Additional Diamondiferous Gravels on the Farm Marsfontein
TORONTO, Nov. 12 /CNW/ -
SOUTH AFRICA
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Klipspringer
SouthernEra Resources Limited (SUF-TSE) today announced that development
of the Phase 1 underground project has commenced on the Leopard Fissure at the
Klipspringer Project (100% SUF) in the Northern Province of South Africa.
The Phase 1 underground project will mine the upper 100 metres of the
eastern section of the Leopard Fissure (Ingwe section) via adits along a
strike length of 1.8km over a period of 29 months.
A 50 tph DMS plant has been ordered and is expected to be built beside
the existing 100 tph plant and completed by the end of March 1999. At that
time, fissure ground will be treated and by mid 1999, a production rate of
12,000 tpm should be achieved. The new 50 tph plant will also allow
exploration bulk samples to be treated independently of the Marsfontein 100
tph plant. The recovered grade of the Leopard fissure is expected to be 70
carats per hundred tonnes treated. A previous parcel of 4,832 carats of
Leopard fissure diamonds was sold in 1997 for a gross US $126/carat.
By the end of 1999, the top 100m of the western section of the Leopard
fissure (Ndau section) will be mined in a similar manner.
Underhand shrinkage stoping will be used at the Ingwe section. The Ingwe
section is estimated to contain 450,000 tonnes while the Ndau section is
estimated to contain 750,000 tonnes.
During the mining of the Ingwe and Ndau sections, a feasibility study
will be completed in order to commence the deeper mining of the Leopard
fissure.
The capital cost of the 50 tph DMS plant is Cdn. $2.34 million.
Marsfontein
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It has been agreed by the Joint Venture partners (60% De Beers, 40% SUF)
that Cdn. $763,000 will be spent on an initial exploration program on the farm
Marsfontein. Many anomalies remain to be explored which may require follow-up
drilling. In addition, the waste stripping at the M1 pipe has shown the
existence of extensive diamondiferous gravel horizons to the south and
southeast of the M1 pipe. Those gravels falling within the stripping perimeter
of the M1 pipe have been stockpiled for future treatment. Further delineation
and grade determination of these gravels will be completed in the future
exploration program.
In October 1998 the Marsfontein Joint Venture produced 144,882 carats
from 26,531 tonnes treated comprising a combination of overburden, weathered
kimberlite and some diabase with kimberlite stringers. The diabase was
encountered during the waste stripping and was treated to facilitate a greater
throughput in the plant which has been slowed due to excessive amounts of
fines (less than 1mm) in the overburden and weathered kimberlite.
Since the start of commercial production on 31 August 1998, the M1 pipe
has produced over 359,000 carats from 57,873 tonnes treated for a recovered
grade of 621 cpht. In addition, over 25,000 carats were produced from bulk
sampling in August. Gross revenue has averaged US $191 per carat on sales
to-date. The current overburden and weathered kimberlite stockpile is expected
to be exhausted by late November. Thereafter, a combination of weathered and
primary kimberlite will be mined and treated for some months.
ANGOLA
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Luo
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At Luo, 1,507 carats were produced in October 1998. The new river
diversion has allowed access to the original riverbed, but large amounts of
water have to be pumped out before the gravels above the bedrock can be
accessed. To the end of October 1998, 25,800 carats have been produced at an
average gross sale value of US $191 per carat.
Cassanguidi
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At Cassanguidi, 42,211 carats were produced in October 1998, but rain may
diminish production during the rainy months ahead. Total production in 1998 to
the end of October from Cassanguidi is 107,200 carats at an average gross
value of US$ 114 per carat.
Camafuca
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Trenching for bulk sampling continues at Camafuca and the pan plant is
being assembled. It is expected to start treating material in December.
SouthernEra has implemented additional security measures in Angola and is
monitoring the current situation very carefully.
%SEDAR: 00004535E
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For further information: Christopher M.H. Jennings, President; A. Lee
Barker, Senior Vice President; Kim Freeman, Vice-President, Operations; Frank
van de Water, Vice President, Finance; Nicholas Sayce, Investor Relations;
Phone: (416) 359-9282; Fax: (416) 359-9141; e-mail: inbox@southernera.com;
southernera.com
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