South Africa Diamond Project Advances Poplar
Forms Strategic Alliance With Leader Mining
datetime:20 Jan 1999 06:39:00 / LEADER MINING INTERNATIONAL INC
POPLAR RESOURCES LTD ("PPX-V;PPLTF-L")
LEADER MINING INTERNATIONAL INC ("LMN-Y")
- South Africa Diamond Project Advances
- Poplar Forms Strategic Alliance With Leader Mining
W. Gennen McDowall, President & CEO of Poplar Resources Ltd, announces
that Poplar has signed a Memorandum of Understanding with Leader Mining
International Inc. of Calgary, to develop the Karmel Diamond Project in
South Africa. The Karmel Project is 100% owned by Poplar's subsidiary,
Karmel Diamond Holdings (Pty) Ltd. It covers 7,500 hectares of prime
diamond exploration terrain near the Lesotho border. The Project consists
of a series of Group II kimberlite fissures/pipes.
Under the terms of the agreement Leader Mining will acquire a 75%
working interest in the project. Leader Mining is providing funding of
$1.5 million over the next three years, with a minimum investment of
$500,000 in the first year. Poplar Resources will be the Operator of the
project. Preliminary ground magnetic surveys indicate the kimberlite
bodies are magnetic. With this in mind, the initial budget includes
funding for a high-resolution, low-level helicopter magnetic survey. This
will be followed by a sampling program including a bulk sample of the known
diamondiferous bodies.
A kimberlite pipe on the property has been partially mined for
diamonds in the past. The Project, at the moment, consists of 3 known
fissures, a kimberlite pipe, and a possible blow. There is a high
probability of more pipes and fissures being identified, offering excellent
exploration targets.
Poplar Resources has recently purchased a 10 tonne/hour diamond
recovery plant. This pilot plant will be moved to the Karmel Project
shortly, to be used to carry out the bulk-sampling program.
The Management of Poplar Resources believes this strategic alliance
with Leader Mining will prove to be of great merit to both companies.
TEL: (604) 718-5454 W. Gennen McDowall, President & CEO
FAX: (604) 682-4459 Poplar Resources Ltd.
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