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

To: VAUGHN who wrote (3879)	7/5/1999 3:40:00 PM
From: gemsearcher	Respond to of 7235

Hello Vaughn. With all respect and deferential admiration - UNCLE !! ;-). While I wholeheartedly agree that NWT diamond exploration prospects are the most exciting in the world today , I have no real choice but to trust the judgement of CJ/HB/LB/KF and the SUF board when it comes to matters relating to how they "prioritize" their exploration efforts. That having been said , I am unaware of SUF "abandoning" or "back-burnering" the NWT assets ; I do acknowledge that the NWT prospects and the summer programme have taken a back seat to SA/Angola/Brazil of late , but I think it would be a mistake to equate silence or even obfuscation with disinterest or lack of commitment unless and until SUF clearly tells us otherwise. Vaughn , I bought into this co. for its exploration talent and I guess when it comes down to it I have to respect the collective judgement of those people as to where , when and how much exploration is warranted. Once again , thanks for the informative and thought-provoking posts. Regards.

To: VAUGHN who wrote (3879)	7/5/1999 4:40:00 PM
From: Confluence	Read Replies (1) \| Respond to of 7235

Hello Vaughn, I hope you, and all, enjoyed a great long weekend. Thanks for the long post, it was informative as usual. As usual, I would suggest that the proper forum for your questions/discussions would be with Dr. Jennings and the rest of SUF mgmt. It seems obvious to me that SUF has decided where its best interests lie, after over 7 years of heavy exploration in the NWT, and frankly that is why I own SUF. Unlike you, I feel unable to make a better technical decision than the people of SUF. They, with all the data in hand, would seem better able to make the risk/reward calculations. I don't want to sound annoyed, but it seems like you're waging a war of words with SUF over resource allocation via this thread. Why not just call them? Perhaps you should submit a resume? ;-) In case you think I'm 100% behind SUF, here are some things I feel: Am I annoyed at the share price? Yes!!!! Do I think mgmt should be doing more re:share price? Yes!!!! Does SUF communicate effectively with the market? No Do Canadian analysts understand SUF? No Has SUF been effective in dealing with the sellers in the market for the past 6 months? No!!! Whew, I feel better! A couple more points: - I understand that this Rombouts is a consultant to many diamond companies. I see from his email address that this is so. Would it not seem reasonable that he feel it necessary to expand on his various client's projects? - He states that Klipspringer is to produce about 70,000 carats per year. Having talked with management (processing of the stock pile started last week!), I feel comfortable with production (after a few months in the start-up) leveling at 20,000 tpm with a grade of around 70 cpht for monthly production of about 14,000 carats and an annual take of over 160,000 carats. (He's not on the SUF payroll!) - The GDV dispute with De Beers initiated with production from Marsfontein, but includes all diamonds De Beers produces in RSA. Nonetheless, SUF is still being payed by De Beers for its share of production. Points to SUF people for guarding the cash flow! - I couldn't find any reference in his words to any Angolan exploration. Comments were only made on the two properties that were already in production. And even then, then tone seemed positive for the Catoca mine (over 1 million carats), and the initial numbers from Luzamba (US$19 million from 100,000 carats or US$190/carat) would seem to indicate why some companies feel the upside is too great to pass up. But it is still an horrible corner of the world. - Brazil was only given a passing reference, and SUF/CNB were first on the list. My deduction is that Rombouts does no work in this part of the world. With the talented people at SUF and CNB, I can see why they have no need (unlike many other companies) to bring in hired guns to evaluate their properties. Seems to me like reading Rombouts words and view of the diamond world is subjective, like the cup is half-full/half-empty agrument. Regards, Confluence

To: VAUGHN who wrote (3879)	7/5/1999 5:20:00 PM
From: Confluence	Respond to of 7235

Hello Vaughn, Further on the Rombout's article (good reading) here my "cup is half-full" take: In the Mine Production section, he says, in order, (my quick thoughts in brackets): Canada - Ekati (new, excellent production and quality) Botswanna - Jwaneng (world's richest, better facilities) Orapa (expanding) Russia - Udachny (declining), International (new production) South Africa - Marsfontein (high grade, GDV issues) Klipspringer (100 SUF%, too low on production) De Beers other RSA operations (re-structuring) other RSA producers (mixed bag) Angola - Catoca (good production in difficult environment) Congo - artisanal Australia - Argyle (higher prices) I feel very good to be grouped in with the Ekati/Jwaneng/Orapa groups. While these have longer lives, some folks seem to rank the Marsfontein/Klipspringer stuff reasonably well. New Mines: NWT - Diavik (only Canadian mention, great grade) Russia - (many references, esp. Archangel) Botswana - Gope (controversial) Australia - Merlin (small cluster) Indonesia - (dredging -- I can wait 100 years for this stuff!!) Angola - Luzamba (trial mining, good results, 4 deaths) Its nice to have the fissure system already counted among producing mines! Exploration: NWT - (decade of intense exploring, 200 kimberlites found, several diamondiferous finds being moved towards production) - Snap Lake (WSP/ABZ) - Jericho (TAH) - Kennedy Lake (MPV) - Lac de Gras (DMM/BHP) Alberta - (disappointing) Greenland (DMM) Brazil - (SUF/CNB & Diagem) Russia - (controversial) Southern/Western Africa - (much detail) I note, with shock, the ommission of both the Munn Lake sill and the Yamba pipes. Do we take this to mean the esteemed Mr. Rombouts feels that SUF is better off in Brazil? Or rather that much exploration (as he says) has gone on with the successes as he has noted (SUF, disappointingly, not among them)? This was a good, informative update on the world of diamonds, but I don't think its purpose was to approve/disapprove of any company's plans, athough it was clear that several areas were difficult to work in, several had been extensively explored and many other exciting areas were completely unmentioned. Best of Luck, Confluence

To: VAUGHN who wrote (3879)	7/5/1999 5:39:00 PM
From: marcos	Respond to of 7235

"The Yetwene mine, producing 250 carats per day and operated by DiamondWorks was the victim of an armed attack and was closed at the end of the year." Yetwene is now open and producing, with the second plant about to start if it hasn't already. Luo also producing, with dmw getting closer by the day to positive cash flow, a trend that will accelerate if and when security costs can be reduced. Something is happening with Diamondworks ... there has been a First Marathon wall on it for some time, and i've been looking for the reason ... this may provide a clue - #reply-10337407 This continues to be one of the most informative threads on SI imho ... cheers, all