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Gold/Mining/Energy : Trump's 12 Diamond Picks, Discussions Limited -- Ignore unavailable to you. Want to Upgrade?

To: Surething who wrote (594)	2/4/1998 12:22:00 AM
From: Mr Metals	Respond to of 2251

Sure. This sounds better then anything on this thread so far. Clear Creek Resources Ltd - Option secured to purchase Postma diamond mine, South Africa Clear Creek Resources Ltd CK Shares issued 3251001 1998-01-30 close $0.7 Tuesday Feb 3 1998 Mr Wade Dawe reports Clear Creek Resources has entered into an agreement to acquire a 100% shareholding in a South African company, Blakeley Investments (Pty) Ltd, which holds an option to purchase an operating open pit diamond mine (known as the Postma mine) in the Postma kimberlite pipe. The site is close to the town of Postmasburg and 170km west-northwest of Kimberley, South Africa. An independent geological report on the Postma pipe suggests that the pipe could be mined to a depth of 340m and postulates recovery of about two million carats. The eastern part of the pipe has been mined to a depth of 40m. The Postma kimberlite is believed to have been initially exploited in the early part of the century, but the operations reportedly ceased after accidental flooding of the pit. The pit was recently dewatered, a crusher-concentrator plant was built, and mining activities have now resumed. Production data from the dewatered pit indicates a grade of 30 carats per 100 tonnes. A high percentage of gemstones is present, including very high quality blue-whites, with some stones as large as seven carats. A conservative but economic grade of 17.5 carats per 100 tonnes has been estimated for the entire pipe, with an average selling price of about US$120 per carat. Management believes that the project holds enormous potential. Grades may be higher because a grade dilution may have been caused by the very high (around 30%) content of locally-derived xenoliths in the present pit. A ground-based magnetometer survey and geological survey suggest that the pipe may be more than two hectares size. The present pit only occupies a limited portion of this total area. In addition to the Postma kimberlite pipe reserves, additional reserves may be present in a concealed kimberlite dyke, which was indicated by the geomagnetic survey. The dyke, which is probably 0.5m to 2m thick, appears to traverse 1.4km of the property. The potential for possible large blows on the dyke remains to be evaluated. Blakeley has entered into an option agreement with Northwest Diamond Company (Pty) Ltd pursuant to which Blakeley has been granted an option to purchase from Northwest the Postma mine as a going concern. The option period commences on March 1 1998 and will run for 180 days. The 180 day option period will be used to undertake drill and bulk sampling investigations of the Postma kimberlite and the associated kimberlite dyke, to check the equipment, and to test the reliability, production capacity and operating costs of the processing plant. The purchase consideration for the mine will be 4.1 million South African rands (equivalent to approximately C$1.21 million at the current rate of exchange). During the option period, Blakeley will lease the Postma mine and its infrastructure at a cost of 180,000 South African rands (approximately C$53,000 at the current rate of exchange) per month. Sales proceeds and profits from all diamonds recovered during the option period will accrue to Clear Creek. By exercising the option, Clear Creek will also acquire the fixed assets and the numerous movable assets that form the basis of the site infrastructure and current mining operation. The fixed assets include two parcels of land (27.5 hectares) in Postmasburg with their various improvements (office block, store rooms, living quarters, civil work for the fixed plant). Movable assets include earth-moving machinery, transport vehicles, the kimberlite processing plant, and various items of miscellaneous equipment, with spare parts and office furniture. In addition to the payment to Northwest to exercise the option, consideration payable by Clear Creek for the total shareholding in Blakeley will be as follows: 1) C$20,000 upon signature of the agreement, which has been paid; 2) 100,000 shares in Clear Creek to be issued within five days of VSE approval of the transaction; and 3) Within five days of the exercise of the option, a further C$50,000 plus 900,000 shares in Clear Creek, which shall be subject to further regulatory approval in due course. In addition, a finder's fee of 100,000 shares is payable when the option is exercised. Clear Creek views the Blakeley takeover as an exciting opportunity to acquire a going concern whereby immediate profits can be realized in the first year of production, and with enormous exploration potential. The takeover bears witness to management's determination to seek out and acquire world class assets to add value for the benefit of all shareholders. Following the recent acquisition of the option to purchase the Good Hope alluvial diamond property on South Africa's west coast, and the better-than-expected results presently emerging from that test program, the Blakeley takeover affords another unequivocal demonstration of management's commitment to a defined strategy of expansion in the richly-endowed diamond fields of South Africa. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com Mr Metals