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

To: gemsearcher who wrote (4006)	7/15/1999 8:28:00 AM
From: don jackson	Read Replies (1) \| Respond to of 7235

SouthernEra Resources Limited - SouthernEra / Canabrava Project, Brazil - Intensive Exploration Programme Commences. TORONTO, July 15 /CNW/ - SouthernEra Resources Limited (SUF-TSE) and Canabrava Diamond Corporation (CNB-V) are pleased to announce the commencement of an intensive exploration programme on the 480,000 hectare Canabrava Project in Brazil. The Canabrava Project is located in the southwestern part of the Sao Francisco Craton, one of the largest alkaline igneous provinces in the world, which is known to host diamond bearing kimberlites. The region is well known for its production of large, high quality gem diamonds. More than 50 diamonds weighing between 100 and 726 carats have been reported from the general area. George Read, who brings over 15 years of experience in diamond exploration to the project, has been appointed Project Manager and all key personnel are now in place. A comprehensive technical review of the Project and organization of a work programme has been completed. Exploration work on the Canabrava Project is well advanced and includes extensive airborne and ground geophysical surveys, geochemical sampling and drilling. The large volume of data has generated a significant number of high interest geophysical and geochemical target areas. A first phase exploration program to identify primary diamondiferous kimberlites and alluvial gravels will be carried out over the next twelve months and will include the following: - As a first priority, all areas that have produced excellent kimberlitic indicator mineral chemistry (suggesting good diamond potential) from both kimberlite pipes and stream sediment sampling are being followed-up. - More than 100 kimberlite pipes have been discovered as a result of previous work. Of these, only eight pipes have been tested for diamonds, with three pipes returning positive microdiamond results. Field checking and rock sampling has commenced to recover kimberlitic indicator minerals from the pipes. Pipes with mineral chemistries suggesting good diamond potential will be drilled or pitted to test for diamonds. - A property-wide airborne geophysical survey completed during 1992 was successful in locating over 500 geophysical anomalies indicative of pipe intrusions that remain to be fully explored. Presently, the airborne geophysical data set is being reprocessed and selected targets will be field checked after delivery of the final airborne maps. - The project area hosts a number of potential alluvial diamond deposits and for over 150 years local miners have recovered alluvial diamonds from all major rivers on the property. A small number of local miners are currently producing both large and high quality, fancy, coloured diamonds from some of the rivers within and downstream from the property. During May 1999, an 80.02 carat red diamond was recovered approximately 10 kilometres downstream of the property area by local miners. - Air photo interpretation and field checking of drainages to locate and define new and old diamond-bearing terraces, paleochannels and active river channel gravels is underway. Drainages with historical production of high value diamonds are being examined and will be tested as a first priority. SouthernEra is highly encouraged with both the primary and alluvial diamond potential of the property area and looks forward to the implementation of this first phase exploration program. Under the terms of an Option / Joint Venture agreement signed on 28th June, SouthernEra can earn a 50% interest in the project by spending a total of US$20 million over 7 years with an option to increase this to 70% (see News Release dated April 6, 1999 for details). A total of $US1.5 million must be spent in the first 24 months.