Hello George,
How accurate can a little 200 tonne sample be in predicting grade for a diamond mine anyway?
Final Results and Valuation of Diamonds for M-1 Bulk Sample
September 25th, 1997
SouthernEra Resources Limited (SUF-TSE) is pleased to announce the final results of its bulk sample from the M-1 kimberlite pipe on the farm Marsfontein (SUF- 65%, Randgold and Exploration 35%), at its Klipspringer Project in South Africa. The indicated grade is 335 carats per hundred tonnes (cpht).
This confirms the earlier grade results previously announced (Press Releases 11-08-97 and 03-09-97).
Valuations have been recently completed on a 441 carat parcel of M-1 diamonds by three independent, Antwerp-based diamantaires. The average of the three values is $US142.58, with the individual values for the parcel ranging from $US131.76 to $US156.29 per carat.
The sample material, comprising 144.6 dry tonnes of M-1 kimberlite, has been completely processed, with 484 carats recovered to date, for an average grade of 335 carats per hundred tonnes (cpht). The average size of the diamonds recovered is 0.32 carats. 97 diamonds over one carat, with a total weight of 177.8 carats, were recovered. Of these, 26 are larger than 2 carats (weighing 78.3 carats), 11 larger than 3 carats (weighing 50.3 carats), and 2 larger than 5 carats (weighing 14.2 carats).
This material was recovered from 95 percussion and reverse circulation drill holes, completed to depths of from 10 to 165 metres, which cover the surface expression of the kimberlite.
Approximately 8.65 tonnes of the total sample represents kimberlite recovered from deeper drill holes (40-165m depths), and this material was processed separately. Diamonds weighing 32.4 carats were recovered from this sample, for a grade of 375 cpht. This parcel includes 7 stones larger than 1 carat, having a combined total weight of 13.4 carats. Despite the relatively small size of this sample, the consistent high grades at depth support the Company's belief that the grades encountered so far at M-1 are not enhanced by surficial enrichment.
The M-1 kimberlite, with a drill inferred resource of 685,000 tonnes to a depth of 100 metres, and an indicated in situ value of approximately $US450 per tonne, represents an opportunity for generating significant early cash flow from the Klipspringer Project, through cost effective open cast mining.
The ongoing work program at Klipspringer is focusing on advanced exploration and development work leading to a feasibility recommendation for the Marsfontein M-1 kimberlite, as well as continued underground development and bulk sampling on the Leopard Fissure system. Elsewhere, delineation drilling is continuing on the Sugarbird kimberlites, and on other targets in the Klipspringer property holdings.
Management is very encouraged by these results, which indicate that the M-1 pipe has one of the highest reported values per tonne of any known primary kimberlite.
For more information please contact:
Christopher M.H. Jennings, President
A. Lee Barker, Vice President
George V. Albino, Chief Geologist
Kim Freeman, Chief Mining Engineer
Nicholas Sayce, Investor Relations
Telephone: (416) 359-9282
Fax: (416) 359-9141
Folks with a wait and see attitude should take note. DEBEERS did not wait for the M1 to go into production to make their move.
Winspear has proved up tonnage of at least 20 times the M1 pipe and of similar value per tonne. The show may be all over before the drilling is done or the 7000 tonne bulk sample is released.
PS George,
Where is the 8 meter intersection?
Is this part of the NW section? Which drill holes were withheld for 13 months?
When were they drilled and when were they released?
DEBEERs were fairly impressed by SUF's 144 tonne bulk sample.
Do you know some boneheads in San Franciso that know more about diamond mines than DEBEERS?
In your estimation are pipes usually nore consistent in grade than dykes?
Could you provide some examples?
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