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

To: Valuepro who wrote (7175)	10/15/2004 12:13:33 AM
From: gg cox	Respond to of 7235

Klispringer gets second chance By: Gareth Tredway Posted: '10-OCT-04 16:00' GMT © Mineweb 1997-2004 mineweb.net JOHANNESBURG (Mineweb.com) -- SouthernEra’s Klipspringer diamond mine in South Africa’s Limpopo province will be re-opened on a trial basis in January, according to Patrick Evans, the company’s chief executive. The mine was mothballed in December 2003, after “under-production of carats and the strength of the South African rand resulted in an operating deficit of R49 million,” says the company’s website. Evans says the initial small scale of the trial mine, at about 10,000 to 15,000 tons per month (half previous), will help the mine make an “operating profit immediately,” even at a rand of R6.50/$. The company has made this decision on a view that “the rand is not going to see 6 again,” says Evans, “We did not want to be the last to move.” Ian Cockerill, Gold Fields’s chief executive, showed a similar view on Friday, at the release of the company’s annual report, saying that perhaps the bottom had been reached. A total of 74,662 carats was produced in 2003, at an operating expenditure 15 percent below forecasts. It is a joint venture operation, with SouthernEra holding a 55.8 percent interest. The company is conducting exploration in several African countries, including the Democratic Republic of Congo (DRC), Angola, Gabon and, soon, Zimbabwe according to Evans. The most promising seems to be the DRC, where Evans says the company could have a mine before the end of next year. SouthernEra has about 41 permits in the minerals-rich country, which would make up about 10 projects if developed. “It is about five Kimberlites and five alluvials,” said Evans. Feasibility studies on these projects would cost about $4 million each, in general, says Evans. Funding would therefore have to come through the formation of a joint venture, he adds. This would be with a major player or a big diamond fabricator, such as Lev Leviev, the diamond tycoon. Evans says some talks are underway, but would not say with whom. Four days ago, the company also announced the discovery of Kimberlite pipes at its exploration area in Gabon. Evans says that since 1999 the company has been exploring in the country, along with BHP Billiton and De Beers, the world’s largest rough diamond producer. The identified targets are currently being tested by drilled.