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

To: Gunnar who wrote (218)	1/25/2001 2:20:16 PM
From: Gunnar	Respond to of 225

NAN has two projects in Brazil, diamonds and Zn at the MASA mine. SCQ has do earn some money from somewhere to buy the warrant in NAN closing May 15th. If SCQ can lay some hidden values on the table there is a nice move to be done: 1. As a cash price when selling the option on the MASA Zn mine to NAN. 2. Start up the MASA mine after two yr of production taking out the high grade Zn (40%,!!)at the Storliden mine. That would generate further 15-20 of "Storliden-output-quality-years" to the existing reservs in Sweden. Cash flow from Storliden will make this an easy peace of cake. Read the old release from -99 carefully: "South Atlantic Signs Letter Agreement On Major Zinc Project In Brazil VANCOUVER, BRITISH COLUMBIA--August 24,1999--South Atlantic Resources Ltd. (the ``Company'') is pleased to announce the signing of a letter agreement with regard to an exclusive right to lease with an option to purchase 100 percent of the MASA zinc mine of the INGA Group in Brazil. The MASA mine has an estimated resource of 4.9 million tonnes averaging 18 percent zinc (indicated and inferred) as ascertained by Micon International, consultants for South Atlantic Resources Ltd. A portion of this resource may be amenable to open-pit mining. The INGA Group was an integrated producer, mining and refining zinc in Brazil from 1963 to 1996. The MASA zinc mining operation is located in the Vazante district in the western part of the state of Minas Gerais. Zinc silicate mineralization was discovered in the Vazante district in 1952. MASA has produced approximately one million tonnes of zinc metal since mining operations started in 1963. Production in the 1990s' ranged between 390,000 to 480,000 tonnes of ore per year averaging between 15 percent and 20 percent zinc. The mineralization consists of willemite and hemimorphite (calamine) hosted in a steeply dipping, brecciated fault zone which has a strike length of 3 kilometers. Adjacent to the MASA mine is Cia. Mineira de Metais (Grupo Votorantim) which is the largest zinc producer in Brazil, currently producing 112,000 tons of zinc metal per year from their Vazante underground mine and Tres Marias refinery. The MASA mine is located on the same mineralized fault zone and is considered to hold good potential for expansion of reserves at depth and along un-tested strike length. The INGA Group operated a refinery treating zinc silicate ores near the port of Sepetiba, 60 kilometers west of Rio de Janeiro, producing in 1995 45,000 tonnes of Special High Grade zinc ingots. In 1996, as a result of low international prices for zinc, high interest rates in Brazil and two industrial fires, the INGA Group ceased operations and was placed in judicial receivership. The letter agreement calls for completion of due diligence by South Atlantic and execution of a formal lease-option agreement. Terms and conditions of the agreement are currently being negotiated. ON BEHALF OF THE BOARD Edward F. Posey, President"