Black Swan Gold Mines Ltd. announces first diamonds from the Coromandel project
VANCOUVER, Feb. 18 /CNW/ - Black Swan Gold Mines Ltd.
Trading Symbol: TSE - BSW
BERLIN - BSM
FRANKFURT - BSM
Black Swan Gold Mines Ltd. is pleased to report that commissioning of the
pilot plant at its Coromandel alluvial diamond project in the State of Minas
Gerais, Brazil is progressing well. This plant has been constructed in a
remarkably short time. It is more than meeting expectations and is already
recovering diamonds from test materials. Close to 16 carats of diamonds, with
an average value of over U.S.$230 per carat, were produced from the first 500
cubic metres of gravels processed.
Following the current holiday period in Brazil, the plant throughput will
be increased in stages to exceed 500 cubic metres per day. Bulk sampling, with
samples drawn on a representative basis from all of the areas to be mined,
will commence after the seasonal rains, in late March or April.
Black Swan is also commencing an exploration program to investigate
primary sources of diamonds in kimberlite/lamproite pipes and intrusives. Its
properties in Minas Gerais include a number of targets. It is encouraged by
activities of other companies, including a major company investigating a pipe
in the Serra da Canastra region, where Black Swan has large holdings.
Following the rains, Black Swan will extend its drilling program to
targets in its adjoining properties in the Coromandel district that have
potential for large volumes of pay gravels. Provided successful operations can
be established at the first site at Coromandel, other sites may be brought
into production in sequence.
It should be noted that the fall in value of the Brazilian currency, the
Real, improves the economics of the Company's proposed projects in Brazil.
Prior to the adoption of a floating exchange rate, the Real was over-valued
and costs in dollar terms were significantly higher than will be the case in
future.
THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE
CONTENTS OF THIS NEWS RELEASE
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For further information: Mrs. Nora Coccaro, Director, (604) 689-2599,
fax (604) 662-8429, www.blackswan.com |
