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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Andrew who wrote (26141)	7/11/2000 9:26:46 AM
From: don jackson	Read Replies (1) \| Respond to of 26850

Winspear completes first phase of value recognition program - July 2000 Scoping Study Increases Mineable Tonnage to 39.5 Million Tonnes at 1.70 Carats per Tonne - Expansion From 3,000 to 6,000 Tonnes Per Day Funded Out of Cash Flow From Operations - Drilling Program Underway - Four Rigs Drilling, a Fifth Being Mobilized - Conference Call Tuesday, July 11, 2000 at 4:30 PM Eastern Daylight Time (EDT) VANCOUVER, July 11 /CNW/ - Winspear Diamonds Inc. (WSP-TSE) is pleased to announce the results of the July 2000 Scoping Study for the Snap Lake Diamond Project. The mineable tonnage is estimated at 39.5 million tonnes of kimberlite at an average diluted mine grade of 1.70 carats per tonne, containing a total of 67 million carats. The July 2000 Scoping Study was prepared by MRDI Canada (MRDI), a division of AGRA Simons Limited. With the increase in mineable tonnage from the Pre-Feasibility Study, the economics improve significantly. Total projected revenues increase to C$11.5 billion. Estimated pre-tax cash flow is C$7.24 billion and total after-tax cash flow is C$3.99 billion. The net present value of the after-tax cash flow, discounted at 8%, is C$1.38 billion. The after-tax discounted cash flow rate of return (DCFROR) is calculated as 39.4% with a payback period of 3.4 years. Mine throughput expands to 6,000 tonnes per day and mine life is extended from 12 to 21 years. << ----------------------------------------------------------------------- July 2000 Scoping Study Pre-Feasibility Study ------------------------------------------------------------------------- Study Parameters ------------------------------------------------------------------------- Mineral resource (tonnes) 37.8 million 12.4 million ------------------------------------------------------------------------- Grade (carats per tonne) 1.98 cpt 1.98 cpt ------------------------------------------------------------------------- Mineable tonnage (tonnes) 39.5 million 12.6 million ------------------------------------------------------------------------- Diluted mine grade (carats per tonne) 1.70 cpt 1.75 cpt ------------------------------------------------------------------------- Recovered carats 67 million 22 million ------------------------------------------------------------------------- Value per carat* C$171 (US$118) C$171 (US$118) ------------------------------------------------------------------------- Ultimate throughput (tonnes per day) 6,000 tpd 3,000 tpd ------------------------------------------------------------------------- Operating costs (per tonne) C$88/t C$94/t ------------------------------------------------------------------------- Initial capital - 2001-02 C$289 million C$269 million ------------------------------------------------------------------------- Expansion capital - 2004-06 C$230 million - ------------------------------------------------------------------------- Maximum mining depth below surface 750m 370m ------------------------------------------------------------------------- ------------------------------------------------------------------------- Economics ------------------------------------------------------------------------- Revenue C$11.5 billion C$3.8 billion ------------------------------------------------------------------------- Pre-tax cash flow C$7.24 billion C$2.24 billion ------------------------------------------------------------------------- Cash flow after tax C$3.99 billion C$1.22 billion ------------------------------------------------------------------------- DCFROR 39.4% 37.6% ------------------------------------------------------------------------- Net present value (5%) C$2.01 billion C$0.75 billion ------------------------------------------------------------------------- Net present value (8%) C$1.38 billion C$0.56 billion ------------------------------------------------------------------------- Mine life 21 years 12 years ------------------------------------------------------------------------- Pay back period 3.4 years 2.1 years ------------------------------------------------------------------------- >> The information in the above table is for 100% of the Snap Lake Diamond Project. * Exchange Rate: US$1.00 equals C$1.45 "The July 2000 Scoping Study confirms that the Snap Lake Diamond Project is one of the most important undeveloped diamond projects in the world," said Randy Turner, President and Chief Executive Officer of Winspear "We are excited by the results in this study and anticipate providing updates as more results of our Value Recognition Program become available. From here we are moving ahead to prepare a bankable feasibility study reflecting these new results." Details of the First Phase of the Value Recognition Program (VRP) Resource Base: The July 2000 Scoping Study is based on a mineral resource of 37.8 million tonnes with a grade of 1.98 carats per tonne. This study incorporates the drilling information outside of the Pre-Feasibility Study mineable tonnage as well as the 35 step-out holes drilled since June 1999. This brings the number of kimberlite intersections drilled to 224. The mineable tonnage is derived by including mine dilution and subtracting tonnage contained in pillars. The mineable tonnage for that portion of the kimberlite dyke greater than 2m in thickness has increased from 12.6 to 27.6 million tonnes. The remaining 11.9 million tonnes represents kimberlite ranging from 1-2m thickness for which increased dilution has been allowed. The attached map shows in Areas A and B the mineable tonnage from the Pre- Feasibility Study and July 2000 Scoping Study, respectively. Mine Plan: The Pre-Feasibility Study was based on mining to a depth of about 370m below surface. In the July 2000 Scoping Study MRDI extended mining to a depth of about 750m with ore hoisting via a vertical shaft beginning in 2006. In recognition of the expanded mineral resource, MRDI has proposed that mine throughput increase from 3,000 tonnes per day to 6,000 tonnes per day. The mine life estimate has also increased from 12 to 21 years. The July 2000 Scoping Study is based on the development of the Snap Lake Diamond Project in two stages. Initial development would achieve a throughput of 3,000 tonnes per day (tpd) by the end of 2003 (in accordance with the Pre- Feasibility Study). The second phase would see development of shaft access on the north shore of Snap Lake, allowing two primary access points and throughput to be increased to 6,000 tpd by the end of 2006. Cost Estimates: With the expansion of the mineral resource and the associated need for expanded mine works and processing facilities, capital costs are estimated to be C$289 million initially, with expansion capital requirements in years 2004 through 2006 of C$230 million which will be funded out of cash flow from operations. Overall operating costs are estimated to be C$88 per tonne and include mining, processing, freight and general and administrative costs. In the Pre-Feasibility Study, MRDI estimated that the initial capital cost for the Snap Lake Diamond Project would be C$269 million. Operating costs for the 3,000 tonnes per day base case were estimated at C$94 per tonne. Details on the Second Phase of Value Recognition Program As announced on July 5, 2000, Winspear has also undertaken an aggressive drill program of step-out holes to the northeast, east and southeast of the known extent of the kimberlite dyke. Four drills are currently operating, while a fifth drill is being mobilized and will begin drilling soon. The attached map shows the drill target areas of the Value Recognition Program. Results of this drilling will be used to update the July 2000 Scoping Study. Conference Call Details Shareholders are encouraged to participate in a conference call later today, the purpose of which will be to elaborate on the July 2000 Scoping Study. Interested parties can enter the call, set to commence at 4:30 p.m. (Eastern Daylight Time) July 11, 2000, at any time after 4:15 p.m. (EDT). Participants outside North America: 1-416-641-6674 Participants inside North America: 1-800-379-5831 As demand may exceed available lines, the call will be available for replay for seven days following the original transmission by dialing in North America 1-800-558-5253. Outside of North America, please call 1-416-626-4100. As part of its ongoing efforts to inform investors and other interested parties of Winspear's activities relating to the Value Recognition Program, the Company will be posting a transcript of this session on its web site at www.winspear.com. The Toronto Stock Exchange has not approved or disapproved the form or content of this news release Winspear relies on litigation protection for "forward looking" statements. The July 2000 Scoping Study provides an estimate of the potential of the Snap Lake Diamond Project. There is no certainty that further analysis and data will result in realization of the estimated potential.

To: Andrew who wrote (26141)	7/11/2000 6:26:55 PM
From: Andrew	Respond to of 26850

Winspear Diamonds Inc - Winspear Diamonds receives share purchase offer Winspear Diamonds Inc WSP Shares issued 51,634,088 2000-07-10 close $4.55 Tuesday Jul 11 2000 TSE Bulletin 2000-0906 De Beers Canada Holdings Ltd., a wholly owned subsidiary of De Beers Centenary AG, has made an offer dated July 6, 2000, to purchase all of the outstanding common shares at $4.25 cash per common share. The offer will expire at 5 p.m. (Vancouver time) on July 28, 2000, unless withdrawn or extended. The offeror reserves the right to withdraw the offer and not take up and pay for any shares deposited pursuant to the offer unless a number of conditions set out on pages 12 and 13 of the offering circular have been satisfied, including the condition that prior to the expiry of the offer not less than 50.1 per cent of the shares (calculated on a fully diluted basis) shall have been validly deposited under the offer and not withdrawn prior to its expiry. Shareholders wishing to accept the offer must deposit their certificates representing common shares together with a duly completed and executed letter of acceptance and transmittal with the Trust Company of Bank of Montreal in Montreal, Toronto, Calgary or Vancouver so as to be received there prior to the expiry of the offer. Shareholders whose certificates will not be available to be deposited by the expiry time may nevertheless accept the offer by following the instructions for guaranteed delivery contained in the offering circular. The offering circular discloses that RBC Dominion Securities Inc. and N.M. Rothschild & Sons Canada Securities Limited have been retained to act as the offeror's dealer manager for the offer, and to form and manage a soliciting dealer group comprising members of the Investment Dealers Association of Canada, and members of the Toronto and Montreal stock exchanges and the Canadian Venture Exchange. The offeror will pay to any member of the soliciting dealer group whose name appears on the designated place on a letter of acceptance and transmittal accompanying a deposit of shares a fee of five cents for each share deposited and taken up by the offeror pursuant to the offer, subject to a minimum fee of $85 and a maximum fee of $1,500 with respect to each beneficial owner of shares. The minimum fee shall only be payable on tenders of 1,000 or more shares. (c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com