Attention Business Editors:
SouthernEra Resources Limited - Diamond production passes 1 million carat mark in South Africa
- six new anomalies confirmed; drilling to commence at month end -
TORONTO, June 15 /CNW/ - SouthernEra Resources Limited (SUF - TSE) today
announced that diamond production from its Marsfontein Joint Venture and its wholly owned Klipspringer properties in South Africa has surpassed the 1 million carat mark.
The value of the 858,988 carats(x) (see note at end) produced and sold up
to 28th May, 1999 was US$121.69 million. Since mining began on SouthernEra's 100% Klipspringer property in April, 1998 and the Marsfontein Joint Venture (SUF 40%, De Beers and partners 60%) in August, 1998, 380,231 tonnes have been treated to produce 1,041,543 carats at a recovered grade of 274 carats per hundred tonnes (cpht).
Equally important to continuing production is the fact that soil sampling
at Marsfontein has enabled the Joint Venture Partners to confirm 6 new anomalies to raise the total of new anomalies found on that property to 18.
''These recent developments confirm the potential for additional
kimberlite discoveries on the Marsfontein Joint Venture. SouthernEra is a company standing at the threshold of vigorous growth,'' said Dr. Chris Jennings, President of SouthernEra. ''The future of SouthernEra has been assured by the results of an ongoing core drilling programme that has indicated long term diamond resources at Klipspringer. At our current state of exploration, these could last for 15 years with potential to greatly increase these resources.''
''In addition, we have added to the life expectancy of the M1 deposit by
planning to deepen the pit, and also of the Marsfontein Joint Venture by the discovery of the new M8 kimberlite/stockwork(xx) orebody and by finding a number of very promising additional targets on the property. We are encouraged, as well, by recent results in both the Northwest Territories in Canada and the Camafuca pipe in Angola and feel that the recent signing of an agreement with Impala Platinum Holdings Ltd., which will enable us to acquire a major platinum reserve very close to our Klipspringer Diamond Mine, will consolidate our strategy of providing long term growth and revenue for SouthernEra,'' said Dr. Jennings.
Marsfontein Joint Venture M1 Mining Results.
Mining commenced on 31st August, 1998 and as of 10th June, 1999, 300,278
tonnes had been treated to produce 960,403 carats at a recovered grade of 320 cpht. The value of 780,086 carats, sold to date, from the Marsfontein Joint Venture was US$ 113.05 million(x) (see note at end.). From 1st January to 10th June, 1999, 428,067 carats were recovered from 183,578 tonnes treated for a recovered grade of 233 cpht. As all weathered kimberlite has now been mined and treated, the clay problem formerly experienced in the thickener section no longer exists. The recrush crusher has been replaced with a new unit that has significantly enhanced throughput. Between 31st May and 10th June, 1999, more than 5,000 carats per day were recovered on 6 out of 9 working days.
The M1 pit, currently at a depth of 50m, is 270m in diameter at surface
following the commencement of a second waste cut. The second cut will allow mining of the pit to 150m below surface. Waste stripped to date is 3.6 million tonnes. Low grade gravels and low grade M8 kimberlite/stockwork ore have been stockpiled around the perimeter of the pit. A 368 tonne sample of
M8 ore gave a grade of 22 cpht. These additional reserves will also extend the life of the Marsfontein Joint venture.
The five largest diamonds recovered to date from Marsfontein weighed
145.7, 114.2, 102.0, 99.6 and 88.1 carats, respectively.
Marsfontein Exploration Results.
Six new kimberlitic mineral anomalies have now been found, bringing the
total to 18. Sampling results from the southern portion of the farm are awaited. Additional lines are being cut on some of these anomalies to enable detailed ground geophysical surveys to delineate drill targets. Follow up geophysical surveys have to date identified 10 targets. (M1 was a clearly defined geophysical target.) The Joint Venture plans to commence between 2,600 and 4,600 metres of reverse circulation drilling on a number of these targets towards the end of June. Results of the drilling will be announced as they become available.
Bulk sampling to date, of the M3 kimberlite and the gravels overlying M3,
indicates grades of 13.9 cpht and 4.9 cpht, respectively. Most gravel resources currently being profitably mined in South Africa have grades of less than 3 cpht. An initial evaluation of the parcel of diamonds from the M3 kimberlite indicates good colour, quality and size distribution. The largest diamond recovered to date weighed 4.5 carats.
SouthernEra Resources is currently the 4th largest diamond producing
company in the western world as a result of its Marsfontein Joint Venture and Klipspringer Diamond Mine in South Africa. The Company also has diamond exploration activities underway in Canada's Northwest Territories, in Angola, Brazil, South Africa and elsewhere. SouthernEra has recently commissioned an independent, bankable feasibility study prior to acquiring the Messina Platinum Mine in South Africa where the Company hopes to commence production in early 2002 to provide steady, very long term cash flow.
Notes.
(x) There is a delay of approximately 6 weeks between the production and
the sale of diamonds, hence the discrepancy between production and sales figures quoted.
(xx) Stockwork. A mineral deposit consisting of a three dimensional
network of irregular veinlets closely enough spaced that the whole mass can be mined economically.
%SEDAR: 00004535E
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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 |
