Hello Wayn and Sam
Thanks
THis off the wire this A.M.
It looks as if some progress is being made. Nice pipe and prospects but don't trust the security of the legal system.
Archangel Announces Third Quarter Financial Results and Reports on Its Russian Activities
DENVER, Dec. 18 /CNW/ - Archangel Diamond Corporation (the
''Corporation'') (Vancouver: AAD) announced today financial results for the
nine months ending October 31, 1998. The Corporation reported current assets
of $13,246,219, most of which was held in cash accounts, no long-term debt,
and current liabilities of $2,595,868. Current liabilities consist mostly of
accrued exploration expenses incurred on the Verkhotina license in
northwestern Russia since the Corporation notified its venture partner AGD at
the end of the second quarter 1998 that it was suspending all exploration
payments until the mining license was transferred to Almanzy Bereg as required
by the Joint Venture Agreement initially signed in 1993 and subsequently
amended. For the nine-month period, the Corporation had net income of $91,386,
or $0.00 per share, consisting of operating costs of $1,147,131 offset by
$1,273,568 for foreign exchange gains and interest income, compared to a loss
during the same period in 1997 of $9,190,266 or $0.47 per share. The nine
months 1997 loss was primarily due to a non-recurring write-off of $7,985,784
of exploration costs relating to the Windy Ridge diamond project in Russia.
(All dollar amounts stated herein are in Canadian dollars unless otherwise
specified).
The Corporation, in an attempt to amicably resolve its license dispute,
has successfully achieved access to the highest levels of the Russian Federal
Government, having met with Prime Minister Yevgeny Primakov and some of his
senior ministers including Viktor Gerashchenko, head of the Russian Central
Bank. Prime Minister Primakov assured the Corporation that he will cause his
staff to investigate the failure of Arkhangelskgeoldobycha (Russian Venture
Partner AGD) to transfer the Verkhotina license to Almanzy Bereg (''AB''). AB
was formed in 1994 for, among other things, to hold the Verkhotina license and
is owned 50% by AGD, 40% by the Corporation and 10% by IBME.
In support of Canadian companies doing business in Russia, the Canadian
government, through its embassy in Russia and specifically the ministries of
External Affairs and Natural Resources, have been very helpful and supportive,
making contacts with their Russian counterparts trying to resolve the
Corporation's dispute.
The Stockholm Arbitration is proceeding ahead with all three arbitrators
now in place. Judge Advocate Gunnar Nerdrum, the Chairing Arbitrator, has
advised the other two Arbitrators, AGD, Archangel and their respective law
firms that he would like to begin hearings in Stockholm on February 26, 1999.
In addition, the Corporation is in ongoing discussions with AGD trying to find
an amicable solution to the license transfer dispute. As yet a solution, which
would warrant the Corporation investing additional funds to advance the
project, without security of good title, has not been found. Commenting, Tim
Haddon, President of the Corporation, said that the Corporation is cautiously
optimistic that a solution will be found in the near future, relative to the
increased awareness and apparent action concerning the license transfer by
certain segments of the Russian Government.
During the third quarter, bulk sampling of the Grib diamond pipe
continued, even though funding by the Corporation was suspended at the
beginning of the quarter. Wide diameter hole 47 was completed to a depth of
303 meters, bringing the total number of wide diameter holes completed to four
since inception of bulk sampling. Three additional wide-diameter holes, 43, 76
and 100, are currently in progress at depths of 17 meters, 20 meters and 301
meters respectively. Wide diameter holes completed to date have produced
approximately 600 tonnes of sample, 318 tonnes of which have been processed
through the Pomorye treatment plant yielding 280 carats. Processing results
show an overall diatreme grade of 136 carats per 100 tonnes of +1mm diamonds
and an average composite grade of diatreme and crater facies of 88 carats per
100 tonnes of +1mm diamonds. The 282 tonnes of wide diameter bulk sample
remaining to be processed is expected to yield about 250 carats if the
historical grade holds. The combination of all drilling conducted on the Grib
Pipe, from inception to date, has produce nearly 7,300 diamonds greater than
1mm in size weighing 378 carats. The Corporation has an established objective
of recovering a minimum of 1000 carats for valuation purposes in support of a
final feasibility study of which 378 carats have been recovered and about 250
carats, as contained in 282 tonnes, are on surface waiting to be processed.
Archangel Diamond Corporation is an international diamond exploration
company that currently owns a 40% interest in Almazny Bereg (''AB''), which
conducts exploration on the Verkhotina license area located in the Province of
Arkhangel'sk in northwestern Russia. De Beers Consolidated Mines Ltd. recently
stated, in a technical assessment report prepared on behalf of Task Holding
Limited, that the Grib Pipe has an estimated resource of 73 million tonnes of
kimberlite to a depth of 500 meters and contains 51 million carats of +1mm
diamonds, at an average grade of 70 carats per hundred tonnes, with a value of
US$72 per carat.
For further information contact John R. Haigh at 888-626-8223 or
303-292-1299, facsimile at 303-297-0538, or by email at
archangeldiamond@worldnet.att.net.
On behalf of Archangel Diamond Corporation
''Tim Haddon''
CEO, President and Director
**********
Have a Merry CHristmas |
