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

To: 1st.mate who wrote (3890)	2/1/2000 6:12:00 PM
From: Lazarus Long	Read Replies (1) \| Respond to of 4884

GOLD NEWSLETTER FAX ALERT #75 JANUARY 28, 2000 CANABRAVADIAMOND CORP(CNB:CDNX) (604-669-2525) It is readily apparent that this should be a very exciting year for Canabrava shareholders. For one thing, the company expects to be producing diamonds before the end of the year, and the global diamond market is hotter now than ever before. Secondly, the company has several exploration programs underway, and every one of them has the potential for a big payoff. Canabrava and Paramount Ventures and Finance Inc. (PVF.CDNX), its partner in the Rio do Sono alluvial diamond mining project in Brazil, expect to receive production permits for this operation by the middle of the year. The project would be producing diamonds very soon after that, because the companies already have the equipment they need on site. This area has produced numerous large and high quality diamonds. In addition, Canabrava and partner SouthernEra Resources Ltd. (SUF.T) are moving quickly in their search for the source of the diamonds that have been mined for centuries from Brazil?s rivers. This program is under the direction of some of the best minds in the diamond exploration field. So far, more than 100 kim-berlite pipes have been identified on property held by Canabrava, and bulk samples taken from several of those pipes will soon be run through a processing plant now being set up by the partners. Several years and many millions of dollars (funded by previous partners) have already been spent on the project to get it to this stage. Results from the initial bulk samples over the next few months will indicate which of the pipes are most likely to contain economic quantities of diamonds, and those pipes will be further sampled. SouthernEra is funding the current work as part of a $15 million option to earn a 50% interest in the property. Canabrava is leading the exploration effort in another highly prospective area that has so far received almost no public attention. Diamonds produced from Canada?s Northwest Territories since late in 1998 rank Canada among the world?s most important diamond producers. While much of the attention has been focused on the area around the initial discovery in the Northwest Territories, Canabrava has quietly accumulated a large property position in Ontario. Skepticism about the potential for diamonds in Ontario meant that Canabrava had the region almost to itself. Their foresight has been rewarded with a joint venture from Kennecott, under which that company has agreed to spend C$25 million to earn a 60% interest on part of Canabrava?s property. Kennecott is an affiliate of Rio Tinto, which is about to begin construction on Canada?s second major diamond mine. On January 14, Canabrava announced another joint venture on its Ontario properties, an agreement in which Navigator Exploration Corp. (NVR.CDNX) can spend C$1.75 million over two years, of which it has committed to spend at least $C1 million in the first year, in order to earn a 50% interest on recently acquired ground. Navigator is headed by Grenville Thomas, the famed explorationist who founded Aber Resources and led the search program that resulted in the discoveries of some of the richest diamond deposits in the world. Aber, with Rio Tinto, are about to spend US$1 billion to develop those deposits into Canada?s second major diamond mine. Another important development that adds to the merit of the Ontario diamond play is a multi-thousand tonne bulk sampling program now being conducted by De Beers on a pipe in northern Ontario. Nothing has been disclosed publicly, but De Beers must have been pleased with the results of last year?s smaller bulk sample to undertake the current multi-million program. Expect to see Canabrava?s share price perk up as the drilling gets underway in February in Ontario. News from the bulk sampling in Brazil and the start of production later in the year should also be very positive for the company.Canabrava Diamond CorpRecent Share Price:???????????..C$1.00Shares Outstanding:????????.?36.5 millionMarket Cap: ?????????.?...C$36.5 millionShares OutstandingFully Diluted:???????????.. 41.4 millionMarket CapFully Diluted: ??????????..C$41.4 million