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

To: VAUGHN who wrote (862)	4/17/1998 12:24:00 PM
From: VAUGHN	Respond to of 7235

Hello All Cannacords Morning Coffee has some interesting information: * SouthernEra Resources (SUF : TSE : $8.00 : Issued 30.4M); and NWT Exploration Yesterday, SUF hosted a conference call re - the latest developments in the Marsfontein M1 litigation at Klipspringer (please see yesterday's Daily Letter). Dr. Chris Jennings of SouthernEra confirmed at the outset that a number of conversations had already been held with Mr. Nicky Oppenheimer, Chairman of De Beers regarding a possible resolution of the matter. It now appears that the submission process for interdicts on the case will be completed in the court by May 18, and if a decision to expropriate the mineral rights as per the SouthernEra/Randgold application under Section 24 is in fact reached, the court may take a month or so to effect the expropriation; a ruling as to the rightful ownership under Section 17 apparently might be made at anytime. SouthernEra does not see the litigation going on indefinitely. There were apparently over 200 on the call, some with some very skewed ideas. At the beginning of the call, SouthernEra V.P. Exploration Lee Barker brought us up to date on the drill program at Munn Lake in the NWT. While drilling began last week, repairs to the rig have delayed the program and currently the drill is testing the second target of 16 identified in the Munn Lake - Margaret Lake area. Lee felt that lake drilling might continue to the end of May, and we are sending him a pair of chest waders. An update on the NWT program may be made in about 10 days. Just to the south-southwest of the SouthernEra et. al. drill program, Winspear Resources (WSP : VSE : $0.73 : Issued 33.9M) and Aber Resources (ABZ : TSE : $17.30 : Issued 40.7M) in their 57.3-42.7% joint venture at Snap Lake are preparing for the final winter '98 drill program from the lake ice. The final sample of diamondiferous kimberlite from the dike on the western peninsula was airlifted out yesterday morning. The winter airstrip had been in the center of Snap Lake which now appears to be the most prospective area for finding the feeder source" for the numerous dikes and breccia zones in the vicinity. The diamond drill which has been operating in the CL 25 area, should be back at Snap Lake early next week. On Wednesday, the temperature reached +9(C, the warmest day yet. Although there is 5-9 feet of ice on the lakes, snow cover is gone and when longer periods of sunlight hit the ice the candling-process sets in which begins to rot the ice: Winspear will be happy to get another three weeks of drilling. Speculators should keep the limited drill season forefront in their market timing. Late Wednesday, DHK Resources, a company equally owned by Dentonia Resources (DTA : VSE : $0.35); Horseshoe Gold (HSX : ASE : $0.40) and Kettle River Resources (KRR : TSE : $0.90), announced that Kennecott Canada Exploration (KCI) had intersected 82 m of kimberlite on what is known as the DO-29N target on the WO block of claims south of Lac de Gras (north of the SUF-KLA-IAR and WSP projects). The material in the intersection was described as volcaniclastic, mud rich, indicator bearing kimberlite and the anomaly drilled is described as an "offset EM conductor recently located by ground geophysics". This kimberlite is some 100 m north of DO-29 which was drilled in 1993 and encountered poor kimberlite in what appears to be a different kimberlite phase (we were not able to find any published caustic fusion macro-micro figures for DO-29). While DO-27 and DO-18, on the same claim block (aka Tli Kwi Cho) did not make grade (or implied carat value), these pipes were certainly diamondiferous and we await with interest the results from KCI's analysis. The WO Block of claims is held: KCI 40%; DHK 35%; Aber Resources 15% and SouthernEra 10% (with SUF and DHK carried). As Dentonia pointed out in an April 6 release: "...KCI's geologists will also present three papers at the Kimberlite Conference held at Cape Town, South Africa, this week. Two of these papers deal with the Lithosphere structure of the Slave Craton and the third is a study of the diamond population recovered from the bulk samples of Tli Kwi Cho complex (pipes DO-27 and 18) on the WO block during 1993, 1994, and 1996. Although the diamond grade of the pyroclastic phase of the DO-27 pipe was as high as 50 ct/100 tonnes and both eclogitic (50%) and peridotitic (25%) diamonds were recovered, and surprisingly, diamonds 25%) of super deep origin (650 km ( depth) were included in the diamond population, commercial grades were not obtained. The parcel of diamonds examined from the Tli Kwi Cho complex weigh between 0.01 and 0.42 carats, 75% were greater than 0.10 carats, but 75% of the stones were coloured from shades of brown (55%) to yellow/brown (5%), to yellow (9%) and to grey (6%), resorption was between 25% to 65% of their original weight. All these factors contributed to the poor commercial value of these stones and not the grade of the pipe per se, which is within a ball park grade of commercial pipes world wide..." David James (204) 988-9602 Regards