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

To: Donald McRobb who wrote (5251)	12/24/1999 11:27:00 AM
From: Donald McRobb	Read Replies (2) \| Respond to of 7235

The Northern Miner Volume 85 Number 44 December 27, 1999 - January 2, 2000 DIAMOND PAGE -- SouthernEra assesses Camafuca samples Toronto-based SouthernEra Resources (SUF-T) is encouraged by the latest mining results at its Klipspringer diamond property in northeastern South Africa. An average of 41.5 carats per 100 tonnes was recovered in November 1999, and monthly production rates are expected to reach 20,000 tonnes by March 2000. As dilution is controlled, recovery rates are expected to rise to the predicated 50 carats per 100 tonnes. Miners are employing shrinkage and sub-level open-stoping methods, the latter being the less expensive of the two (and a first for any fissure diamond mine). Meanwhile, results are in from the first bulk sample taken from the 51%-owned Camafuca kimberlite project in Angola. In total, 1,081.17 carats were recovered from 3,544 cubic metres, or 0.31 carat per cubic metre. This is six times the historical grade for the same area, with the increase reflecting better recovery methods. Also, recent valuations of diamonds recovered from ongoing bulk sampling priced 1,514.75 carats at US$126-140 per carat. More than 31.6% of the stones exceed 1 carat in weight, and 21.2% exceed 2 carats. SouthernEra will shortly form a subsidiary to manage and hold its interest in the property. The new company would also be responsible for financing the project to production. In 1983, the Camafuca kimberlite pipe was estimated to contain 13.5 million carats in 90 million cubic metres, based on sampling of 60% of its total area. The indicate resource is divided among two areas; one consists of 29 million cubic metres grading 0.3 carat, whereas the other contains 11.2 million cubic metres grading 0.43 carat. In related news, SouthernEra and partner Canabrava Diamond (CNB-V) have selected five spots for bulk sampling at the Canabrava joint venture in Brazil. All are alluvial targets associated with a major drainage basin that has served local miners for years, recently giving up 79- and 54-carat pink diamonds several kilometres downstream from the property. Also, geological mapping of kimberlite-lamproite pipes is complete, and 25-to-30-tonne samples have been taken from two of the brecciated bodies. Additional bulk sampling plus drilling is planned for the new year. SouthernEra can earn a half-interest in the project by spending US$20 million over seven years, of which US$1.5 million must be spent in the first two years. The company, which has spent $700,000 so far, can reduce its obligation by US$5 million by subscribing for US$1 million worth of Canabrava shares by June 10, 2000.