News!!!
April 1, 1999
Replaces Mine Operator Klipgat 18 Concession
MOUNTAIN LAKE RESOURCES INC ("MOA-V;MLKRF-L")
- Replaces Mine Operator Klipgat 18 Concession
Mountain Lake's President, Allen Sheito, reports on his recently completed trip to South Africa, focusing on his inspection of Company's mining operation.
The Klipgat 18 concession went into production in mid February, 1999. Mine through-put was curtailed by inadequate supplies of water which had to be transported by tanker trucks and Mountain Lake's objectives were not being achieved. Approximately 250 tons of gravel were treated in February producing four quality diamonds weighing 6.1 carats, yielding a grade of 2.44 carats per 100 tons.
On March 15, Mountain Lake announced that a successful water well had been drilled providing a continuous flow of 5,000 gallons per hour. This well was completed by B & E International (Pty) Ltd., one of Mountain Lake's joint-venture partners in this project. B & E is a large heavy equipment operator specializing in opencast mining, marine engineering, concrete and aggregates, quarries, etc. The other mining partner in this project is Paradise Holdings, another South African Company involved in the mining of coal, clay and diamonds.
The new joint-venture consisting of B & E International and Paradise Holdings have agreed to replace JOEK Diamante as operators of the Klipgat 18 Concession. This agreement between Mountain Lake, B & E International and Paradise Holdings was signed on March 27, 1999. This realignment is viewed as a very positive development. B & E is a large diversified company with proven engineering, construction and mining capabilities. They forecast a production of 25,000 tons per month beginning in June and increasing to 92,000 tons per month by October, 1999.
JOEK Diamante was agreeable to the restructuring of the Klipgat 18 operations. One of the two JOEK partners, Edu Kleyn, a South African miner/businessman originally involved in the successful start-up of the Klipgat 18 operations, will continue to be involved with the new joint-venture. A smooth transition is underway leading to greater annual production and increased profitability.
TEL: (902) 542-9773 A.E. Sheito, President & C.E.O.FAX: (902) 542-4442E-mail: leejill@total.netInternet: www.mountain-lake.com |
