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

To: Factfinder who wrote (541)	12/22/1997 10:32:00 AM
From: VAUGHN	Respond to of 7235

Hello All Here is the news: SOUTHERNERA RESOURCES LIMITED - LUO CONCESSION, ANGOLA - Fourth Quarter Production Results TORONTO, Dec. 22 /CNW/ - SouthernEra Resources Ltd., (TSE-SUF) is pleased to announce production results from the Luo Concession in northeast Angola for the period October 23, 1997 to December 12, 1997. The data represents approximately 35 days production from the flood plain area, and 42 days production from the newly diverted river channel. Non production days during this period involved maintenance, plant modification, weather related delays, and Sundays. For most of the operating period, the newly commissioned pan plant, and mechanized flood plain mining, operated 24 hours per day. The river bed production, utilizing pumps and divers, operated during daylight hours only. Flood plain material processed consisted of previously stockpiled gravels, and newly mined material from the drier areas of the flood plain. Most of the river bed gravel processed represented cleanup in areas partially mined last season. A total of 3385.5 carats were recovered during the period, comprised of 1703.3 carats derived from the flood plain and 1682.2 carats from the old riverbed. Approximately 2500 carats of the total were produced during 11 working days in December reflecting continuing improvements in the efficiency of the plant operation, and higher riverbed gravel recoveries. Average stone size for the riverbed, and flood plain diamonds from this production, are approximately 0.75 carats, and 0.35 carats respectively. A number of larger stones up to 8 carats in size are included in the parcel. Sale of the stones is expected to take place later this year. Mining and processing will resume at Luo in mid January. In the interim, the site crew will begin excavating a new drainage canal to divert a previously unmined section of the river to the north of the present diversion. This area represents a stretch of river down stream from a strong rapids, similar to the present diversion section where numerous large, high quality diamonds were recovered in 1996. A number of upgrades are planned for the plant as part of the early 1998 work program, and increased mechanization will be introduced into the river diversion gravel recovery operation to permit a higher production rate for this material. Most gravels from both sources will be processed in the pan plant. SouthernEra has a 10% interest in the fluvial (riverbed) deposits, and a 35% interest in the flood plain gravels at Luo. The Company has now assumed responsibility for the Luo operation, and has an agreement in principle with its South African partners whereby SouthernEra's current interests will be replaced by a 30% interest in production from both the fluvial (riverbed), and flood plain gravels. Regards