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

To: George J. Tromp who wrote (1947)	8/19/1998 12:03:00 PM
From: VAUGHN	Read Replies (3) \| Respond to of 7235

Hello George Couldn't agree more. As you already know, but for the benefit of those that do not: 1. These particular Cypango's (CAV) claims lie along the central and northwest border of the BHP/DiaMet claims and along the southeast corner of the Lytton claims. 2. Four uneconomic but diamondiferous pipes were found on these claims over the past seven years, three of them in the early days of the NWT diamond rush. You may recall the pipe names of Sputnik, Torrie and Sue and later, Ptarmigan. 3. The claims and these pipes all lie directly in line with Lytton's Jericho pipes to the northwest and BHP/DiaMet's, Diavik's, DHK's and MPV's pipes to the southeast in a trend originally coined, "The Corridor Of Hope", in the early days of the NWT diamond rush. 4. These pipes were all found principally because they showed up readily on magnetic and EM surveys in the classic contrasting sense, against the host background granite in this particular part of the claims. The feedback I have is that very little real field sampling was initially involved. 5. Tanqueray and Mill City were the principals in those days but like most juniors, they did not have pockets nor the expertise in diamond exploration to sustain a classic grid geochemical sampling program and more detailed and systematic exploration. Once the classic contrasting signal kimberlites were found a more exhaustive traditional exploration program was required to find any elusive atypical pipes. 6. Cypango came in for a larger % both for their injection of $$ and for their corporate connection with John Depuis and Canamera. 7. John Depuis is the owner of Canamera labs, which was one of the world's most accurate and technologically advanced lab(s) for diamond drilling and bulk sampling. John Depuis was initially involved in staking a large part of the Slave craton. Subsequently, Debeers subsidiary Monoprose and a few others, picked up a number of his claim blocks 8. John was originally involved in helping Mountain Province Mining (MPV) secure their property. It was Canamera's exploration team which discovered both MPV's AK 5034 pipe and Lytton's Ranch Lake and eventually their Jericho pipes. 9. Canamera conducted considerable geochemical sampling on these CAV claims but increasingly on a shoe string budget. 10. When CAV wound down their last field program in the fall of 1997, they (Canamera) were actively chasing what they believed to be four small kimberlite pipe EM signals trailing four highly attractive geochemical trains. It was believed that these four pipes were close in-shore on a lake and bracketed a peninsula. They were drilling diagonally from shore trying to hit one based on its EM and magnetic signature but failed. It was their last gasp as the company shot crap on a hit with the intent of financing on good news. 11. The miss was theorized to have occurred due to the likelihood that when the pipes were emplaced, the earth had a different magnetic field orientation which effectively produced a ghost signal offset from where the pipes were actually emplaced. The problem was, they did not have a handle on what that off-set distance and direction were other than the fact that they were not on the peninsula. 12. Between; this theorized magnetic signal off-set, noisy host rock magnetics in this part of the property, and possibly kimberlitic clays similar to what SUF has experienced at Munny Lake, CAV obviously didn't feel they had the pockets, nor the confidence, that they would hit a pipe on their next drilling effort and have not been active this year. 13. When I last saw HB this spring, he indicated that he was also here taking a look at a few other properties. Perhaps, there are also negotiations on a few more prospective Inukshuk (John Dupuis) properties? Interestingly, Inukshuk have the claims north, east and two small ones south of SUF's Back Lake claims. However, in light of SUF's activity and progress there, I suspect JD may be making higher demands and may also be dangling some Monopros interest, as those south CAV claims lie in the MPV/Monopros claims. I doubt SUF can afford to get into a bidding war with DB's. However, as Ron suggested, who knows, perhaps SUF and DB's may pool their efforts to pick up these other claims. That is one way to defeat a seller trying to drive the price up. If SUF hit in on the Back Lake claims, and if their preliminary indications of attractive geochemisty on those southern Inukshuk claims, you may yet prove to be a prophet Ron. 14. So here we are. Suf and their deeper pockets and expertise will take a crack at Yamba Lake claim puzzle. I find it a little ironic, as I actually discussed this property with both CJ and HB on several occasions and the problems CAV/Canamera were experiencing. Who knows, maybe SUF has been lurking hungrily to pick these claims up for some time but they sure were not indicating any interest to me two years ago. 15. One other point on these Yamba Lake claims worthy of note. Lat year, CAV were also chasing I believe it was eleven or eight (memory is shot) other distinct and very attractive geochemical trains into several large lakes, but did not have the wherewithal to drill them from the ice this past spring. One in particular, they were very excited about. 16. A few years from now, I believe today's announcement, will prove to be one of the most important in the history of the development of our company. SUF have just added some considerable blue sky to their NWT (Canadian) portfolio on which there are already proven diamondiferous pipes, a considerable body of exploration data and what appears to be the strong likelihood of multiple highly diamondiferous targets. I may yet have to adjust my five year share price target upwards. Regards