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

To: buylowsellhigh who wrote (5227)	12/21/1999 8:12:00 AM
From: lwk	Respond to of 7235

Progress report on Canabrava joint venture, Brazil SouthernEra Resources Limited (SUF-TSE) TORONTO, Dec. 21 /CNW/ - SouthernEra Resources Limited (SUF-TSE) and Canabrava Diamond Corporation (CNB-CNDX) are pleased to report on their joint venture diamond exploration project in Minas Gerais State, Brazil. Activities have focused on evaluating both primary and alluvial targets including several breccia bodies containing high interest kimberlitic indicator mineral chemistry. Five alluvial areas have also been targeted for bulk testing. The latter are associated with current artisinal diamond production along one of the major diamond producing drainages of the region. Detailed geological mapping has also been completed on several known kimberlite/lamproite pipes which have never been systematically tested in the past. Indicator mineral compositions are favorable. Two of the breccia bodies have been selected for bulk sampling. Trenching has been completed on both, and approximately 25 to 30 tonnes of material has been recovered from each body. These samples will be tested for macrodiamonds at the joint venture laboratory in Patos de Minas early in the New Year. Additional bulk sampling and drilling programs are planned for the year 2000. The occurrence of very high value diamonds from the many rivers draining the project area is well known. During 1999, local miners recovered 79 carat and 54 carat pink diamonds from the Rio Abaete a few kilometres downstream from the joint venture claims. The regular recovery of high value stones such as these has prompted the joint venture to accelerate the alluvial exploration program to locate and define diamond-bearing gravels in terraces, paleochannels, and the active river drainages. This work has involved compilation of all known artisinal diamond mining activity in the area to delineate the extent of alluvial production in the four major rivers that traverse the project area. The five priority areas defined for follow-up work will be evaluated by trenching and auger drilling early in the new year. Upgrades to the laboratory facility in Patos de Minas have now been completed, and it is now fully operational. SouthernEra can earn a 50% interest in the Canabrava project by spending a total of US $20 million over seven years, with a firm commitment of US $1.5 million in the first two years. Approximately $CDN 700,000 has been spent to date. The agreement also provides SouthernEra with the option to reduce the US $20 million earn-in obligation to US $15 million by subscribing for private Placement for US $1 million worth of Canabrava shares on or before June 10, 2000. SouthernEra Resources Limited is a Canadian based resource company, with an excellent portfolio of properties and projects in South Africa, Zimbabwe, Brazil, Uruguay, Angola and in Canada's Northwest Territories. SouthernEra's strategic goal is to become one of the world's leading diamond and platinum producing companies. More information can be obtained through the Company's website, www.southernera.com. The common shares of SouthernEra are traded under the symbol SUF on The Toronto Stock Exchange. %SEDAR: 00004535E -0- 12/21/1999 For further information: Christopher M. H. Jennings, President, Phone: (416) 359-9282; Howard M. Bird, Exploration Manager, Fax: (416) 359-9141, e-mail: inbox@southernera.com, www.southernera.com