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

To: INFOMAN who wrote (1876)	7/31/1998 7:13:00 AM
From: Confluence	Read Replies (3) \| Respond to of 7235

Hello Infoman, While there is no disputing the fiasco that surrounded the mineral rights to M1, that was then, this is now. As is the nature of JVs, both parties have to be in agreement before action is taken in order to ensure a prosperous, happy venture. But the operator need only meet the terms of JV, as spelled out in the partnership agreement. There is no evidence of anyone "forcing De Beers hand". Surely even you would find the likelihood of SUF forcing the GIANT De Beers into doing anything rather ludicrous. Don't fear that the will of SUF might overpower De Beers (in RSA, in this decade). You should have more confidence in De Beers. While I find it extremely odd that you are worried about De Beers lack of communication and that I am trying to calm your fears about De Beers (aside: this should be a song title: "Fears about De Beers"), I am unconcerned by your recent concerns. SUF has never had problems with the disclosure of material facts, so I repeat: If you have concerns about De Beers actions (or lack thereof), CALL De Beers. I really am worried that you NGS/"heirs" type guys seem to be on the outside looking in. While it is unsurprising that your dealings with De Beers are lengthy and provide a level of frustration to your group, this is certainly not without precedent. Another way to examine De Beers motives would be to watch the words of Mr. George Burne, their top man in Canada. He has done a great deal of chin wagging about how De Beers is a model JV partner with smaller companies. Perhaps De Beers feels some pressure to deal squarely and quickly with SUF in order that there several Canadian JV partners don't get jumpy, and much more importantly, that the potential diamond marketing partners in Aber, RTZ, BHP and Diamet, feel a level of trust and confidence in De Beers' actions. With the Ekati mines about to begin spewing diamonds that will affect the market by late 1998, perhaps De Beers finds it necessary to prove their ability to work quickly and positively with Canadian diamond producers. My gut feeling, culled from a sense of De Beers historical propensity to do what is exactly in their own interests, is that perhaps several million good quality carats from Ekati, Diavik (2001) and maybe even Camafuca is significantly more important to the long term good health of the CSO than some M1 production. I know this is difficult to believe, but many observers would expect De Beers to put its interests ahead of a small group of South African residents. I would imagine the learned negotiators from NGS would have foreseen this train coming through the tunnel and safeguarded the "heirs" interest from undue delay. Most SUF shareholders would love to see a press release from De Beers about the commencement of mining at M1, but regard it as less likely than the continued full disclosure from SUF. Anyway, its the beginning of a long, holiday weekend throughout most parts of Canada. We hope to return from this enjoyable summer respite to a raft of good news in the next little while regarding SUF. Regards, Confluence PS If Mr. Cumine and his cohorts continue to prove difficult to deal with, I'd suggest a call to Mr. Burne in Vancouver, Canada, or Mr. Roger van Eeghen in London. Both are engaging gentlemen who may offer assistance in your quest for information from De Beers. You could also go right to Mr. Oppenheimer's office; I understand that Canadians have no trouble contacting him for a few minutes from his busy day.