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

To: gemsearcher who wrote (4479)	9/9/1999 8:39:00 AM
From: PHILLIP FLOTOW	Read Replies (2) \| Respond to of 7235

Here it is: SouthernEra Resources Limited - Klipspringer project, South Africa -- Leopard Fissure Mine Progress -- TORONTO, Sept. 9 /CNW/ - SouthernEra Resources Limited (SUF-TSE) SouthernEra Resources Limited (SUF-TSE) is pleased to report that the underground mining program is well underway on the Company's 100% owned Leopard fissure, part of the Klipspringer project property holdings in South Africa. Summary ------- 1. Leopard fissure strike extended 400 metres west by drilling. 2. The total strike of the drilled section and the soil anomaly on the 100% owned Klipspringer property is now 7.8 kilometres. 3. It is planned to increase production to 20,000 tonnes per month by March 2000. To date, approximately 26,000 tonnes of fissure material have been mined by shrinkage stoping and development in the upper levels of the eastern section of the Leopard fissure. Development is progressing well on a number of headings and levels, and it is expected to have at least one long hole open stope in production by mid-September. Development work is planned to average about 375 metres per month until year-end. Production is expected to build up to 20,000 tonnes per month by the end of March 2000 and to continue at this rate until May 2001. At this time production will be increased when the 100 tonnes per hour plant becomes available following depletion of the Marsfontein ores. Recovered grades to date at 30 carats per 100 tonnes (cpht) are lower than the forecast 50 cpht due to the higher percentage of more diluted development material included in the plant feed. As the Company's 50 tonne per hour capacity plant receives dominantly stope production feed, recovered grade is expected to reach forecast levels. Approximately 4,000 carats of Leopard fissure diamonds are presently on hand for valuation and eventual sale later this year. A previous sale of Leopard production in 1997 realized US $126 per carat. The western section of the Leopard fissure will be opened in the fourth quarter of 1999 and development of new production headings in this section of the mine will then continue on an ongoing basis. Exploration continues on the Klipspringer property holdings and soil sampling along the Leopard fissure system has extended the anomalous trend an additional 4km eastwards to the western boundary of the farm Marsfontein. Coordination of data from ongoing work on the Marsfontein farm Joint Venture with De Beers indicates that it correlates with the M-8 dyke structure currently being explored at Marsfontein. An update on this farm will be released shortly. A number of additional targets developed on the holdings will be explored this fall. An infrared thermal imaging airborne survey will be completed in late September to assist in structural analysis of the area and identifying new targets. The current resource base for Klipspringer on the Leopard fissure system has been reported at 4.313 million tonnes at an expected in situ grade of 70 cpht to a maximum depth of 630 metres below surface, along a 3.45 km strike length. Since the last report drilling has extended the strike a further 400 metres to the west making a potential total of 7.85 km of strike on SUF's 100% property. This includes the 4km long soil anomaly mentioned above. Detailed exploration of this structure to the east is expected to enhance these resources and provide areas of future development and production on the property. Since its formation in 1992 as a diamond exploration and development company, SouthernEra Resources Limited has become one of the world's leading diamond producers through its Marsfontein and Klipspringer properties in South Africa. The Company's strategic goal is to increase its long-term revenue and growth potential from both diamond and platinum mining. The Company holds an excellent portfolio of properties and projects in South Africa, Angola, Zimbabwe, Botswana, Brazil, Uruguay and in Canada's Northwest Territories. %SEDAR: 00004535E -30- For further information: Christopher M.H. Jennings, President, Phone: (416) 359-9282; A. Lee Barker, Senior Vice-President, Fax: (416) 359-9141; Nicholas Sayce, Investor Relations, e-mail: inbox@southernera.com; www.southernera.com PHIL