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

To: VAUGHN who wrote (1760)	7/16/1998 9:03:00 AM
From: Ron S.	Respond to of 7235

NR - New 'Kudu' Pipe Found. TORONTO, July 16 /CNW/ - KLIPSPRINGER PROJECT - SOUTH AFRICA. ------------------------------------ - 71 453 Carats produced to date. - Surface sample on new small Kudu pipe. ANGOLA ------ - Resource of 13.5 million carats estimated at Camafuca. - Bulk sample planned. ---------------------------------------------------------------------- KLIPSPRINGER MINE - SOUTH AFRICA SouthernEra Resources Limited (SUF - T) is pleased to announce that production at its 100% owned Klipspringer project now exceeds 71 453 carats. Of this amount 20 000 carats are on hand awaiting sale. The average realised value for Klipspringer diamonds sold so far this year is US$112 per carat. A 1 921 tonne sample from the newly discovered small ''Kudu'' pipe lying between the Leopard and Sugarbird fissures on SouthernEra's 100% owned Rusland farm yielded 173 carats for an average grade of 9 carats per 100 tonnes. The three largest diamonds weighed 10.43, 5.3 and 4.2 carats respectively. Approximately 45 carats recovered were from stones weighing over 1 carat. The average valuation of this parcel from Kudu, was US$203 per carat. Further sampling by large diameter reverse circulation drilling to test grades at depth is underway. Four other kimberlitic mineral anomalies remain to be tested on the same farm as well as elsewhere on the Klipspringer property. ANGOLA A recent sale of 3 590 carats from Cassanguidi (SUF - 50%) in Angola realised US$716 600 for an average of US$200 per carat. A further 4000 carats are on hand in Angola. Production from Angola this year is 27 912 carats which already exceeds that for 1997. This year's production includes an 8.14 pink diamond which was sold for US$12 355 per carat. The average price realised to date for Angolan production is US$ 207 per carat. SouthernEra is currently receiving 46% of proceeds from its Luo operation. At Camafuca in Angola (SUF - 51%), a bulk sample is being planned to provide 5 000 carats of diamonds for valuation later this year. The bulk sample will be treated in the pilot plant used for the initial bulk sampling at Klipspringer. This plant is currently being dismantled for shipment by air to Angola. At Camafuca, some 78 large diameter (1.25 to 1.5 m) holes drilled from surface to depths up to 110m have outlined an estimated resource of 13.5 million carats which occurs within some 88 million cubic metres at an average grade of 0.15 carats/cubic metre. About 50 hectares of the 160 hectare pipe were not accessible during the large diameter drilling phase. Within the 88 million cubic metres are four blocks containing an estimated 8.7 million carats at an average grade of 0.30 carats/cubic metre. Two of the above four blocks have a total of 11 174 500 cubic metres containing 4.8 million carats at an average grade of 0.43 carats/cubic metre. It is expected that the above resources will continue to well below the current drilled depths.