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Gold/Mining/Energy : Black Swan -- Ignore unavailable to you. Want to Upgrade?

To: Diamond Daze who wrote (3149)	12/17/1999 8:58:00 PM
From: Dale Kohler	Read Replies (2) \| Respond to of 3186

Black Swan announces alluvial diamonds recovered and major exploration and development program commences VANCOUVER, Dec. 17 /CNW/ - Black Swan's focus on its diamond projects in Minas Gerais, Brazil has developed into a strategy of alluvial resource evaluation and production as well as exploration for economic kimberlite in the Serra da Canastra and Coromandel regions. Some of Black Swan's alluvial projects, notably Gamela, Fazenda Marques and Estaca, along the Paranaiba River, have been drill-tested for gravel resource and bedrock profiling. Less than half of the prospective alluvial area has been subjected to such preliminary evaluation but an overall gravel resource exceeding 14 million cubic meters has been outlined, sufficient to support a long term mining operation given economic grade. Overburden is not excessive and diamond quality is of high standard. Since September 1999, the emphasis at Gamela, (Black Swan has the right to earn a 51% interest), has shifted from bulk sampling the upper terraces to trial mining the alluvial flats. From the period between September and December 10, 1999, 758.4 carats have been recovered from 5,190 cubic meters treated for a grade of 0.15 carats per cubic meter. Overall diamond prices have varied from US$500-US$700 per carat and the largest stone retrieved weighed 26 carats. Two diamonds, a 16 carat vivid yellow and a 26 carat green/yellow, were sold for US$325,000, representing US$8,125 per carat. The remainder of the production will be sold in the near future. Under the terms of its joint venture agreement, Black Swan is entitled to 20% of the gross value of these proceeds until it exercises its option. Jig plant throughput has been severely affected during its commissioning by shutdowns resulting from process modifications and ensuring environmental standards are maintained. The impressive grade achieved, however, augers well for future downstream mining where stream configuration is favourable and when plant throughput can meet and sustain its rated capacity of 500 cubic meters per day. The operation at Gamela will greatly assist the evaluation and understanding of the adjacent Fazenda Marques and Estaca properties. Fazenda Marques and Estaca will receive the bulk of the alluvial focus in Year 2000. Apart from some additional infill drilling, a series of 5 metre wide trenches will be excavated as part of the evaluation process. Bulk sampling with strict geological control will generate geological information, statistical data for reserve estimates and possibly sufficient diamond revenue to cover operating expenditures. It is anticipated that a modular, transportable 15 tph DMS treatment plant with 60 tph head-feed capacity will be commissioned by May 2000. This unit is designed to be easily upgraded in size and can be easily re-located to other alluvial sites. Black Swan's other alluvial projects will either be advanced to the resource stage by drilling and bulk testing or joint ventured to interested parties. Kimberlite exploration will take on greater importance in Black Swan's future plans as Minas Gerais is considered highly prospective for economic kimberlite. One of the Company's aims will be to locate the sources of the large exceptional alluvial diamonds recovered in the Coromandel region using modern technology and improved geological understanding. At one of the Company's prospects in the Coromandel region, adjacent to garimpeiro workings (artisanal mining), a new kimberlite anomaly, Canguru 1, has recently been established on the basis of soil sampling. Indicator mineral analysis of this kimberlite has identified one 0.071 carat diamond, phlogopite, picroilmenite, pyrope garnet, olivine and perovskite. The grain morphology, indicator count, grain size and mineral suite reflect an underlying source whilst the grain geochemistry confirms its kimberlitic origin. This anomaly will be tested by ground geophysics, drilling and if warranted, by preliminary bulk sampling. Black Swan will be undertaking in Year 2000 an active kimberlite exploration programme over its 100% owned and joint venture properties in the Serra da Canastra Province. This area is renowned for its high proportion of clear white octahedral stones and the discovery in recent years of diamond-bearing kimberlite, destroying the myth that the alluvial diamonds are distal from their source. An extensive airborne EM and magnetic survey is planned and will be accompanied by re-evaluation of currently known kimberlites and detailed sampling to prioritize new occurrences on the basis of their diamond potential. The Board of Directors of Black Swan is pleased to announce the appointment of Mr. Hugh Durey to the management team. Mr. Durey, a diamond consultant with 30 years exploration and mining experience in alluvial diamond and kimberlite evaluation in 14 countries, will be responsible for the technical management of Black Swan's diamond portfolio. Initially with the De Beers Group, he has been the founding director of 2 public diamond exploration companies, has previously operated in Brazil and is well qualified to supervise and aggressively progress the Company's projects through to development. The Board recently approved a Year 2000 exploration budget totaling Cdn$3.5 million encompassing both the alluvial and kimberlite exploration programs. It is believed that this budget combined with the new management focus will lay the foundations for the Company's future success.