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Gold/Mining/Energy : Paramount Ventures & Finance -- Ignore unavailable to you. Want to Upgrade?


To: Diamond Daze who wrote (3636)12/16/1999 4:19:00 PM
From: russet  Respond to of 4884
 


Thursday December 16, 3:30 pm Eastern Time
Company Press Release
Canabrava Diamond Corporation Paramount Ventures And Finance Inc. Progress Report on the Ontario and Rio do Sono Joint Ventures
VANCOUVER, B.C.--(BUSINESS WIRE)--Dec. 16, 1999--Canabrava Diamond Corporation (CDNX:CNB. - news) and Paramount Ventures & Finance Inc. (CDNX:PVF. - news) are pleased to provide the following update on their Ontario, Canada and Rio do Sono, Brazil Joint Ventures.

Ontario Joint Venture, Canada

The Ontario Joint Venture with Kennecott Canada Exploration Inc. includes Canabrava's 100% owned Whitefish Lake Project, as well as the KAP and Rocky Island Lake Projects which are owned 50% by Canabrava and 50% by Paramount. These projects are located northeast of Wawa, Ontario and include more than 200,000 hectares of staked and leased land.

Kennecott has recently advised the Joint Venture partners that planning for the upcoming winter exploration program has been completed. A ground geophysical program focused on high priority targets within the Whitefish Lake and Kap South claims will commence in January, with drilling scheduled to follow by month's end. In addition, a high resolution helicopter-borne magnetic/EM survey will be flown over a high priority target area in early January. Results for this survey will be available prior to the commencement of drilling. Additional drill targets are expected to be forthcoming from this survey. All contracts to support the winter program, including the airborne geophysics, ground geophysics, drilling, helicopter and line cutting, have been let.

Kennecott has the option to earn a 60% interest in the Ontario Joint Venture by spending $25 million within seven years, or by advancing any one of the Projects to a production decision, whichever occurs first. Kennecott, as operator, must spend $1.5 million on exploration before December 10, 2000.

Rio do Sono Joint Venture, Brazil

The Rio do Sono Project is located in the state of Minas Gerais, Brazil and is a 50:50 Joint Venture between Canabrava and Paramount. The Joint Venture is developing the alluvial resources on the Rio do Sono River, and exploring the associated diamondiferous terrace deposits.

Following the recommendation of the pubic hearing process associated with the joint venture's application for a full scale mining license, environmental consultants were retained in September to complete a full Environmental Impact Study (EIS). Good progress has been made on the EIS and the report is expected to be completed by the end of January 2000. The first field program which collected base line data representing the dry season was completed in mid-November. Work included water sampling and analysis, river flow rate studies, fauna and flora baseline studies, socioeconomic consultations with the local communities as well as industrial and commercial interest groups, and consultations with the federal and state environmental authorities. A second field program to collect representative data for the wet season was initiated at the beginning of December and should be completed before Christmas.

On completion of the EIS, government authorities will reconsider the joint venture's application for a full mining license which is expected to take between 90 and 120 days. In the meantime, exploration work on the large terrace deposits on the Rio do Sono claims is ongoing.


Canabrava Diamond Corporation is actively exploring for diamonds in Brazil and Canada both independently and through major joint ventures with Kennecott Canada Exploration Inc., SouthernEra Resources Limited and Paramount Ventures and Finance Inc. The Company is 54.7% owned by Southwestern Gold Corporation (SWG-T). For further information on Canabrava Diamond Corporation, visit our new website at canabrava.ca.

Paramount Ventures and Finance Inc. is a junior exploration company with diamond projects located in Brazil and Canada.

Rory O. Moore, President Canabrava Diamond Corporation

Paul Conroy, President Paramount Ventures and Finance Inc.

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or