Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: gemsearcher who wrote (3567)	6/7/1999 8:45:00 AM
From: PHILLIP FLOTOW	Read Replies (1) \| Respond to of 7235

Gemsearcher: Here it is: Camafuca kimberlite project, Angola (51% SouthernEra) - core drilling program, diamond recovery results - significant indicated grade increase - bulk sample processing begins TORONTO, June 7 /CNW/ - SouthernEra Resources Ltd. (TSE-SUF) is pleased to report the results of diamond recovery tests performed on the large diameter drill core (70mm diameter) samples taken during the Phase I core drilling program completed at Camafuca on the east side of the Chicapa River late last year. The 160 hectare Camafuca kimberlite pipe, located in Lunda Norte Province of northeastern Angola, is the largest undeveloped diamondiferous kimberlite known worldwide. SouthernEra holds a 51% interest in the project and is operator. Approximately 8 tonnes of kimberlite drill core, recovered from 23 holes, was processed in the Company's DMS (dense media separation) exploration plant installed at the Klipspringer site in South Africa. The core results reported in this first table below represent material recovered from drill holes positioned to provide duplicate samples from the locations of earlier core and large diameter (1.5 metre) bulk sampling holes completed by DIAMANG prior to 1985. The depth of the new holes drilled by SouthernEra varied from about 35 to 130 metres. Samples from the core holes were combined based on the major rock types present, and processed. Individual sample sizes varied from 181kg to 750kg. The plant system was set to recover stones over 1.0mm in size. The +0.425mm - 1.0mm material is presently being tested separately for fine diamonds using the caustic dissolution method. << Core Testing Results: --------------------- SUF Hole Sample Weight Carats Grade Recovered (carats per 100 tonnes) 303,320 638 kg 0.63 99.5 308 615 kg 0.44 71.5 316* 253 kg 0.08 32.5 323* 240 kg 0.09 36.0 318 282 kg 0.28 101.0 >> * Note: Duplicate holes drilled at the same location. All of the above results are from the epiclastic kimberlite grit (EKG) rock unit which hosts the higher grade material sampled at Camafuca. The following table provides the overall core testing results for the three main rock types present in the deposit, EKG, epiclastic kimberlite sandstone (EKS), and volcaniclastic kimberlite breccia (VKB): >> Unit Sample Weights Carats Average Grade Recovered (carats per 100 tonnes) EKG 4,789 kg 2.18 45.5 EKS 1,766 kg 0.07 5.2 VKB 1,344 kg 0.10 5.7 >> The stones recovered from the drill core range from 0.01 to 0.39 carats in weight, with the average approximately 0.06 carats, and have good colour and clarity. The test results reported here show a significant increase in indicated grade compared to the earlier DIAMANG data, where the average grade for the EKG unit was indicated to be about 13 carats per hundred tonnes. SouthernEra regards the apparent grade increase as very encouraging, considering the relatively small sample size of the drill core material available. (The DIAMANG large diameter drilling bulk samples averaged about 18 tonnes each). An independent review of the DIAMANG data by MRDI (Mineral Resources Development Inc.) has suggested that the DIAMANG results are likely to represent minimum values for the indicated grades and reserves/resources (13.5 million carats to 80 metres below surface). Caution should be exercised in interpreting the current results because of the small sample size. As data becomes available from the large bulk samples currently being tested, the accuracy of the information will increase. Bulk Sampling Program: ---------------------- Testing of kimberlite samples taken from several trenches on the east side of the Chicapa River is now underway. Two additional trenches have been excavated and a total of nearly 25,000 tonnes is now available for ongoing processing. The initial feed to the rotary pan plant during the commissioning phase has been low grade VKB material from the North Lobe of the pipe. The higher indicated grade EKG material will be processed later this month now that the plant operating parameters for optimizing recoveries have been established. Once a significant diamond parcel has been recovered, the stones will be submitted for new valuation. Earlier valuation (1997) of stones recovered previously at Camafuca averaged USD $85-$100 per carat. Continuing Work: ---------------- Drill core recovered from a 17 hole (1,000 metre) program completed on the east side of the Chicapa River in April 1999 will be sent to South Africa for diamond recovery testing. Samples of this material, which were recovered to do strength testing for the upper decomposed part of the kimberlite have also been submitted to a major cutting wheel dredge manufacturer in Europe for a study to determine if this type of equipment can be used to selectively mine the higher grade, upper, weathered, portions of the pipe. The Company has made preliminary cost estimates for developing the deposit using a cutting wheel dredge, and has estimated that total capital costs of approximately US $25 million will be required to achieve a production rate of 3,500 tonnes per day. Once the trench bulk sample results become available, comparisons will be made with the information in the DIAMANG database to calculate accurate grade figures and new reserves/resources. Once valuations have been made on the stones recovered, an economic study will be undertaken to determine the feasibility of commercial production. The 1999 program has been budgeted at approximately US $3.0 million. SouthernEra is extremely encouraged by the results reported above. The indicated average grade of 45.5 carats per hundred tonnes for the EKG unit at Camafuca from the test work reported is similar to that of other producing kimberlites worldwide, and the potential to exploit higher grade portions of the kimberlite using cost effective mining technology will continue to be evaluated. Further results will be reported when available. Terminology: The kimberlite rock units referred to above (EKG, EKS, VKB) are associated with the volcanic craters of kimberlite pipe systems and represent different types of sediments derived from kimberlitic material erupted from a kimberlite volcanic vent. %SEDAR: 00004535E -30- For further information: please contact: Christopher M.H. Jennings, President; A. Lee Barker, Senior Vice President; Frank van de Water, Vice President, Finance; Kim Freeman, Vice President, Operations; Nicholas Sayce, Investor Relations; Phone: (416) 359-9282, Fax: (416) 359-9141, e-mail: inbox@southernera.com; southernera.com PHIL

To: gemsearcher who wrote (3567)	6/7/1999 9:00:00 AM
From: Gord Bolton	Read Replies (1) \| Respond to of 7235

Camafuca kimberlite project, Angola (51% SouthernEra) - core drilling program, diamond recovery results - significant indicated grade increase - bulk sample processing begins TORONTO, June 7 /CNW/ - SouthernEra Resources Ltd. (TSE-SUF) is pleased to report the results of diamond recovery tests performed on the large diameter drill core (70mm diameter) samples taken during the Phase I core drilling program completed at Camafuca on the east side of the Chicapa River late last year. The 160 hectare Camafuca kimberlite pipe, located in Lunda Norte Province of northeastern Angola, is the largest undeveloped diamondiferous kimberlite known worldwide. SouthernEra holds a 51% interest in the project and is operator. Approximately 8 tonnes of kimberlite drill core, recovered from 23 holes, was processed in the Company's DMS (dense media separation) exploration plant installed at the Klipspringer site in South Africa. The core results reported in this first table below represent material recovered from drill holes positioned to provide duplicate samples from the locations of earlier core and large diameter (1.5 metre) bulk sampling holes completed by DIAMANG prior to 1985. The depth of the new holes drilled by SouthernEra varied from about 35 to 130 metres. Samples from the core holes were combined based on the major rock types present, and processed. Individual sample sizes varied from 181kg to 750kg. The plant system was set to recover stones over 1.0mm in size. The +0.425mm - 1.0mm material is presently being tested separately for fine diamonds using the caustic dissolution method. << Core Testing Results: --------------------- SUF Hole Sample Weight Carats Grade Recovered (carats per 100 tonnes) 303,320 638 kg 0.63 99.5 308 615 kg 0.44 71.5 316* 253 kg 0.08 32.5 323* 240 kg 0.09 36.0 318 282 kg 0.28 101.0 >> * Note: Duplicate holes drilled at the same location. All of the above results are from the epiclastic kimberlite grit (EKG) rock unit which hosts the higher grade material sampled at Camafuca. The following table provides the overall core testing results for the three main rock types present in the deposit, EKG, epiclastic kimberlite sandstone (EKS), and volcaniclastic kimberlite breccia (VKB): >> Unit Sample Weights Carats Average Grade Recovered (carats per 100 tonnes) EKG 4,789 kg 2.18 45.5 EKS 1,766 kg 0.07 5.2 VKB 1,344 kg 0.10 5.7 >> The stones recovered from the drill core range from 0.01 to 0.39 carats in weight, with the average approximately 0.06 carats, and have good colour and clarity. The test results reported here show a significant increase in indicated grade compared to the earlier DIAMANG data, where the average grade for the EKG unit was indicated to be about 13 carats per hundred tonnes. SouthernEra regards the apparent grade increase as very encouraging, considering the relatively small sample size of the drill core material available. (The DIAMANG large diameter drilling bulk samples averaged about 18 tonnes each). An independent review of the DIAMANG data by MRDI (Mineral Resources Development Inc.) has suggested that the DIAMANG results are likely to represent minimum values for the indicated grades and reserves/resources (13.5 million carats to 80 metres below surface). Caution should be exercised in interpreting the current results because of the small sample size. As data becomes available from the large bulk samples currently being tested, the accuracy of the information will increase. Bulk Sampling Program: ---------------------- Testing of kimberlite samples taken from several trenches on the east side of the Chicapa River is now underway. Two additional trenches have been excavated and a total of nearly 25,000 tonnes is now available for ongoing processing. The initial feed to the rotary pan plant during the commissioning phase has been low grade VKB material from the North Lobe of the pipe. The higher indicated grade EKG material will be processed later this month now that the plant operating parameters for optimizing recoveries have been established. Once a significant diamond parcel has been recovered, the stones will be submitted for new valuation. Earlier valuation (1997) of stones recovered previously at Camafuca averaged USD $85-$100 per carat. Continuing Work: ---------------- Drill core recovered from a 17 hole (1,000 metre) program completed on the east side of the Chicapa River in April 1999 will be sent to South Africa for diamond recovery testing. Samples of this material, which were recovered to do strength testing for the upper decomposed part of the kimberlite have also been submitted to a major cutting wheel dredge manufacturer in Europe for a study to determine if this type of equipment can be used to selectively mine the higher grade, upper, weathered, portions of the pipe. The Company has made preliminary cost estimates for developing the deposit using a cutting wheel dredge, and has estimated that total capital costs of approximately US $25 million will be required to achieve a production rate of 3,500 tonnes per day. Once the trench bulk sample results become available, comparisons will be made with the information in the DIAMANG database to calculate accurate grade figures and new reserves/resources. Once valuations have been made on the stones recovered, an economic study will be undertaken to determine the feasibility of commercial production. The 1999 program has been budgeted at approximately US $3.0 million. SouthernEra is extremely encouraged by the results reported above. The indicated average grade of 45.5 carats per hundred tonnes for the EKG unit at Camafuca from the test work reported is similar to that of other producing kimberlites worldwide, and the potential to exploit higher grade portions of the kimberlite using cost effective mining technology will continue to be evaluated. Further results will be reported when available. Terminology: The kimberlite rock units referred to above (EKG, EKS, VKB) are associated with the volcanic craters of kimberlite pipe systems and represent different types of sediments derived from kimberlitic material erupted from a kimberlite volcanic vent. %SEDAR: 00004535E -30- For further information: please contact: Christopher M.H. Jennings, President; A. Lee Barker, Senior Vice President; Frank van de Water, Vice President, Finance; Kim Freeman, Vice President, Operations; Nicholas Sayce, Investor Relations; Phone: (416) 359-9282, Fax: (416) 359-9141, e-mail: inbox@southernera.com; southernera.com