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

To: gemsearcher who wrote (4084)	7/20/1999 8:48:00 AM
From: maxed	Read Replies (2) \| Respond to of 7235

Attention Business Editors: SouthernEra Resources Limited - Drilling to resume in August at Munn Lake, N.W.T. TORONTO, July 20 /CNW/ - SOUTHERNERA RESOURCES LIMITED (SUF-TSE), Island-Arc Resources Corporation and Kalahari Resources Ltd. have reached an agreement to accelerate exploration on the Back Lake diamond project with a drilling program this summer to follow up on the March, 1999 discovery of the Munn Lake kimberlite sill. Ten diamond drill core holes, drilled within an area of 150m by 300m, defined a kimberlite sill that varied in true thickness from 12m to 0.25m. The shallow-dipping, northwest striking kimberlite sill (dipping dyke) returned excellent microdiamond counts with a majority of the diamonds of very good white colour and quality (see news release dated 8th June, 1999). The objective of the Back Lake diamond exploration program over the following twelve months will be as follows: - A ten to fifteen hole drilling program (1,500m) will be completed this summer to define the strike and down-dip continuity of the kimberlite sill as well as its thickness on both the northern and southern shores. Air photo and ground magnetic geophysical interpretation and the recovery of kimberlitic indicator minerals from till samples, suggest that the sill strikes onto both the southern and northern shoreline areas of Munn Lake (see map). - Diamond drill holes will be collared to locate land-based areas where the thickness of the sill would permit a mini-bulk sample of 50+ tonnes to be collected. If successful, the mini-bulk sample will be collected during the early months of the year 2000. - During spring 1999, till samples were collected from the bottom of Margaret Lake to define and locate the up-ice cut-off point of two kimberlitic indicator mineral trains defined on the western shoreline area of Margaret Lake. A 100m spaced line of till samples was collected 1km to 1.5km offshore in Margaret Lake utilizing a sonic drill. No kimberlite indicators were recovered from the samples, suggesting that the primary kimberlite source of the indicators possibly occurs within 1.5km of the Margaret Lake shoreline. Exploration to locate the primary kimberlite sources in Margaret Lake will commence during the winter months when there is sufficient ice on Margaret Lake to complete ground geophysics and support a diamond core drill. Under the new agreement between SouthernEra, Island-Arc and Kalahari to accelerate the Back Lake exploration program, Island-Arc and Kalahari can acquire up to 4.38% and 5.62% working interests, respectively, by providing $750,000 in exploration funds. Of this, $250,000 is a firm commitment, earning Island-Arc and Kalahari a combined 3.33% working interest. Upon completion of the combined 10% working interest earn-in, the interests in the Back Lake project will be: SouthernEra 60% Island-Arc 15% Kalahari 25% After the earn-in is completed, Island-Arc and Kalahari will be responsible for contributing 4.38% and 5.62% to future exploration programs. Any party not contributing will be subject to dilution of its working interests only. Kennecott Canada Inc. retains the right to back-in for a 30% interest on any discovery, by paying two times past expenditures on the Back Lake project. If Kennecott backs in, its 30% interest is from SouthernEra's, Island-Arc's and Kalahari's working interests only. This will not affect Island Arc's and Kalahari's carried interests. SouthernEra is highly encouraged by the Back Lake project results to date. The company views this decision to allow its junior partners to increase their interest in the Back lake Project as a way to accelerate the pace of discovery on the Back Lake project while enabling SouthernEra to continue its other company-building projects around the world at their planned pace.

To: gemsearcher who wrote (4084)	7/20/1999 12:15:00 PM
From: VAUGHN	Respond to of 7235

Hello GS Thanks & good numbers Russett. Not sure I would be too excited if I owned KLA or IAR this morning. Someone might want to explain to the thread, the difference between Working Interest and Carried Interest and their implications to this play? The fact that no kimberlite indicators were found in Margaret Lake but rather on its shoreline, is interesting. It would seem to me that if a land based pipe were there, it would have registered on the aero mag/EM survey. Since SUF previously suggested that more than one train came from Margaret, I am betting dollars to donuts that it did not come from two pipes but rather another dike, possibly with at least a few sections of significant exposure/width sufficient to produce pronounced trains. The good news may be that the NR seems to suggest that the kimberlite is land based and presumably at least several km long, (distance between trains)? On another note, I appreciate the separation of this news/play announcement from any that might be upcoming on the Yamba play. I believe the disappointing news from Munn in the past has diluted interest in Yamba and the delinking in my opinion is a start in the right direction. It also aids promotion of two Canadian stories rather than one, and if that DHK dike is pursued, possibly a third Canadian story may develop. While I believe we are better off with more news on one Canadian pipe story (Yamba) rather than less, on two dikes and one pipe stories, it will nevertheless bring a Canadian asset focus back to SUF in the market's eyes. The PR strategy is still advantageous, I just hope that it concentrates on Yamba pipes. Hope to see other Canadian play NR's soon. On a separate but distantly related matter: Like GMD, RXD & TQY, here is another play TWG that I have been keeping one eye on. The Board reads like a who's who but I don't know the background of the principals. There appears to be close to 50,000,000 shares out and a modest amount in the bank. Considering the lack of diamond expertise and cash, I would think TWG would be interested in optioning this play if it proves to be promising. Considering the location, the fact that it is a dike and its initial data, an interesting possibility this: *** Ungava diamond discovery to be tested by Twin Gold - TWG(TSE) TORONTO, July 20 /CNW - Twin Gold Corporation (TSE: TWG) is pleased to announce that on its 100% held 50 sq km TORNGAT property, on the east side of the Ungava Bay in Northern Quebec, G9 and G10 indicator minerals and a gem quality macro-diamond of 1.5 mm diameter has been found in a 20 - 30 kg sample collected from the outcropping diamondiferous kimberlites. The Company is moving quickly to test a dozen kimberlite dykes which were previously reported in a scientific study, prepared under the direction of Professor James H. Bourne, now a consultant to Twin Gold. The significance of this discovery is twofold: Firstly the statistical implications of discovering a gem quality macro-diamond in a 20 - 30 kg kimberlite sample. Secondly the exposure and the observed continuity of the kimberlite dykes over 4.5 km in length. They cross the Abloviak Fjord, appear in the over 1,000 foot vertical wall of the Fjord, and continue for at least 1.5 km on the barren uplands thus providing a third dimension to the kimberlite dyke cluster. The dykes are of Group 1 kimberlite with an observed thickness up to 2 meters. The tidewater location and vertical exposure offer infrastructure and mining cost advantages as compared to the development of an inland mine in the far north. In a paper, to be presented at a CIM (Canadian Institute of Mining) convention, Dallas Davis, Twin Gold's director of Diamond Mining, refers to the TORNGAT property as ''Canada's new diamond play''. Twin Gold is in addition to the diamond prospect also an emerging producer of a low cost gold mining project of 1 million ounces of gold and 3.2 million ounces of silver reserves in Idaho, U.S.A. For further information: Hermann Derbuch, P.Eng., Chairman, President & CEO, Tel.: (416) 777-0013, Fax: (416) 777-0014 Regards