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Gold/Mining/Energy : DROOY Durban Deep- Best S. African Mine -- Ignore unavailable to you. Want to Upgrade?

To: baystock who wrote (202)	7/16/1999 7:28:00 PM
From: baystock	Respond to of 851

Hargraves - Analyst comments March 29, 1999 Hargraves Resources NL (HAR) has now secured over 51% of Diversified Mineral Resources. Securing control may lead to further acceptances and a possible removal of the 90% acceptances condition. DMR earns a royalty from Portman Mining's Burton coal mine in Qld and has a major gold exploration project in West Africa. The royalty is expected to net the company at least $2 million a year over the next 13 years. Last year the company received $3.75 million. DMR's 88.4% stake in the Agbaou gold project in Cote d'Ivoire contains an indicated and inferred resource of 870,000oz and prospects for further exploration success. In addition, the company owns the Hire gold deposits, 20km north of Agbou, which has a pre-resource estimate of at least 100,000oz. If one assumes the NPV of the coal royalties is in the vicinity of $15m and add the present $1.4 million in cash, the acquisition is valuing the gold in ground at approximately $10/ounce.

To: baystock who wrote (202)	7/16/1999 7:41:00 PM
From: baystock	Respond to of 851

Couple of interesting press releases: Dec 21, 1998 Hargraves announces takeover offer for Diversified Mineral Resources NL Hargraves Resources NL today announced it would launch a cash and scrip offer for West African Explorer Diversified Mineral Resources NL (DMR). The offer of 10 cents cash and one Hargraves share for every four DMR shares, values DMR on a fully diluted basis at approximately $25 million or 12.5 cents for each fully paid ordinary share. This offer represents a significant premium of 26% above the weighted average closing price for DMR shares over the last six months of trading and 25% above the closing price for DMR shares on the day before the offer was announced. Hargraves Managing Director, Mr William Howe said the combined company would provide good operational cash flows, an attractive exploration portfolio and the financial resources to develop projects. "Hargraves' management expertise in the assessment, development and operation of mining projects, plus the management's experience in west Africa means this acquisition is a very good fit. "The acquisition is an integral part of Hargraves' growth strategy and will allow DMR exploration projects to proceed to development quickly," he said. He added that the Company expected DMR's shareholders would welcome this opportunity to "join a dividend paying company with a quality gold producing asset in Australia that could fund exploration and development of the existing African projects." Hargraves Resources NL produced over 70,000 ounces of gold in 1997/98 at a net cash cost (including copper and silver credits) of A$238 per ounce from its Browns Creek Gold Mine at Blayney, New South Wales. Hargraves' after tax profit for 1997/98 was A$4.6 million. The offer will extend to those fully paid ordinary shares on issue at the date of the offer, fully paid ordinary shares issued by DMR to West African Mining and Exploration NL and any partly paid shares, which become fully paid during the offer period. Here is the South African connection between the Kebbles and Hargraves: Hargraves Board appoints Managing Director (Sept 17, 1998) Hargraves Resources NL has pleasure in announcing the appointment of Mr William Howe as Managing Director, effective immediately. Hargraves Chairman Mr Brian Rear said Mr Howe has over 20 years experience in the mining industry including operations management with a major South African mining house and was most recently Managing Director of Ghana Gold Mines Limited. He was a founding Director of Straits Resources Limited and Director of Operations overseeing a period of substantial growth of the Company. Mr Rear added that the Company will review the constitution of the board and its mix of skills in the light of Mr Howe's appointment. Mr Howe has been provided with a clear mandate to build on the excellent operational performance of the Brown's Creek Mine and grow Hargraves whether by acquisition, joint ventures or from its own exploration success.