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

To: brian krause who wrote (1630)	11/10/1998 12:13:00 PM
From: Dave Pavlik	Read Replies (1) \| Respond to of 2251

Canabrava released news this morning. Can anyone comment on it? George? FOR FURTHER INFORMATION PLEASE CONTACT: Canabrava Diamond Corporation George H. Plewes Chairman (604) 669-2525 (604) 688-5175 (FAX) Web site: www.swgold.com or Canabrava Diamond Corporation Rory O. Moore President and CEO (604) 669-2525 (604) 688-5175 (FAX) The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS FOR: CANABRAVA DIAMOND CORPORATION VSE SYMBOL: CNB NOVEMBER 10, 1998 Canabrava Diamond Corporation: Progress Report on Company Activities VANCOUVER, BRITISH COLUMBIA--Canabrava Diamond Corporation (CNB-V) is pleased provide the following update on its exploration projects in Canada and Brazil. CANADA Whitefish Lake Project An aggressive summer exploration program was completed in mid-September. A total of 526 samples were collected, which together with the 726 samples taken during the 1997 season, achieves comprehensive coverage of the Property at a sample density of better than one sample per square kilometre. The focus of the program has been to follow-up on the twelve target areas identified in 1997, as well as to field check numerous geophysical targets identified from the airborne survey completed in February. In addition, geochemical sampling has been completed over the extensive area of new claims acquired following the success of last year's program. Available results for the 1998 summer season have confirmed the discovery of two new kimberlite occurrences on the Whitefish Lake Project. One is a dyke that outcrops, and the second is float material associated with a well-defined indicator mineral plume. These new discoveries bring the total number of confirmed kimberlite occurrences to four, and significantly reinforce the exploration potential associated with the Project. A short drill program aimed at testing the two kimberlite occurrences discovered last year was completed in July. Kimberlite was intersected in three of five drillholes on Anomaly no.115, confirming the presence of a narrow kimberlite dyke (approx. 1.2 m) in the vicinity of last years discovery of kimberlite boulders along the shoreline of a lake. No microdiamonds were recovered from a 158 kg sample of kimberlite recovered from the dyke. However, detailed follow-up sampling and prospecting has revealed the presence of a strong indicator mineral plume as well as kimberlite float material up-ice from the dyke, indicating the likely presence of an additional kimberlite body(s) in the immediate vicinity. No kimberlite was intersected in the single drillhole completed at Site no.121 which tested a subtle magnetic anomaly located in the vicinity of the kimberlite boulders recovered last year. However, a number of additional boulders of kimberlite float have been located within a 100 metre radius of the target site. This provides compelling evidence for the presence of a kimberlite body nearby. Processing of the 1998 exploration samples for indicator minerals is nearing completion and several new intensely anomalous areas have been identified from preliminary results. No geochemical data is available as yet. A follow-up strategy will be finalized once all results are in hand, but will likely include a winter program of ground geophysics in preparation for drill testing specific targets. The drill has been left on-site to facilitate a cost-effective winter drilling program. KAP Project Good progress has been made on the KAP Project, which is a 50/50 Joint Venture with Paramount and Canabrava as Operator. The Project is comprised of three property blocks located along the western margin of the Kapuskasing Structural Zone on the Superior Craton in north central Ontario. In response to positive results from a regional indicator mineral sampling program released by the Ontario Geological Survey (OGS) in April, additional ground has been added to the northern claims block. Despite the fact that competitor activity was encountered, most of the anomalous areas identified in the OGS Survey have been successfully acquired by the Joint Venture. An extensive program of recent alluvium and glacial deposit sampling was initiated in early June and completed in mid-September, with a total of 969 samples collected. The aim of the program was to obtain sample coverage at a density of one sample per square kilometre within the claim blocks, as well as broader spaced reconnaissance coverage over the region. A geophysical consultant has completed an interpretation of the airborne geophysical dataset acquired earlier in the year, and the numerous targets identified have been field checked and sampled. Initial results are encouraging in that indicator minerals, including pyrope garnet, chrome diopside, picro-ilmenite and chromite, have been visually identified in 41 of the 110 samples processed to date. Geochemical data for these minerals is still pending. Laboratory work is expected to be completed during the fourth quarter and an update will be provided once all data is available. Rocky Island Lake Joint Venture The Rocky Island Lake Joint Venture with Paramount covers an area of approximately 130,000 square kilometres located to the east of the KAP Project. Paramount is earning a 50 percent interest in the Project by spending the first Cdn$800,000 in exploration costs. An extensive reconnaissance sampling program was completed in mid-September with a total of 645 samples collected. The program consisted of collecting recent alluvium and glacial till samples at a density of approximately 1 sample per 10 square kilometres. Laboratory processing of samples is proceeding ahead of schedule and preliminary results received to date are encouraging. Based on visual microscope observations, potential kimberlite indicator minerals have been recovered from more than half of 537 samples processed to date. These minerals define discrete plumes in certain areas, the best of which occurs within a group of claims staked by the Joint Venture earlier in the year. Over 100 pyrope garnets as well as abundant chrome diopside, ilmenite and chrome spinel have been recovered to date. Microprobe data is required to determine whether these minerals have been derived from kimberlitic source rocks. Research on geological records of historical work completed in the central part of the project area has revealed reports of a number of ultramafic bodies which, from drill log descriptions, have potential to be kimberlite. Despite considerable effort, it has only been possible to obtain a sample from one of these bodies, and this has been positively identified as kimberlite. This significant new development is being actively pursued. BRAZIL Canabrava Joint Venture Teck Corporation has advised the Company that due to the downturn in the resource market, it can no longer continue to fund the Project. Notice has been given that Teck will withdraw from the Joint Venture effective November 15, 1998. Since the earn-in terms of the J.V. Agreement have not been fulfilled, Canabrava retains its 100 percent interest in all properties and assets associated with the Project. Management is reviewing all available options, and a comprehensive strategy for the future of the Project will be finalized by year-end. In this regard, two major companies have expressed an interest in the Project and discussions to take on a new partner should be initiated shortly. Significant progress has been made on the technical review of the Project and the process is nearing completion. The focus of this review has been to use all available information to identify the highest potential targets and/or target areas and to formulate a strategy that will rapidly advance the Project toward the goal of discovering an economically significant diamond deposit. Over 70 new samples have been taken on specific pipes and at strategic sites in order to supplement the technical database and assist with fine tuning the Joint Venture's exploration model. Macapa and North Bahia Joint Venture A first phase sampling program has been completed on the North Bahia Project. This Project is part of a Joint Venture with Paramount Ventures and Finance Inc. which is funding the first US$500,000 of exploration costs to earn a 50 percent interest in the Venture. The primary aim of the program was to investigate the Redondao kimberlite pipe located in Piaui State. Extensive outcrop of the kimberlite was located, and field observations indicate it to be an altered tuffaceous kimberlite hosting abundant xenoliths of crustal and upper mantle material. The pipe defines a prominent negative topographic feature with the margins clearly defined by the surrounding country rocks. The diameter of the pipe is estimated to be over 1,000 metres. Representative samples of the kimberlite and a stream draining the pipe have been processed at a Canadian laboratory, and a full suite of indicator minerals including pyrope garnet, chrome diopside, chromite and picro-ilmenite are currently being analysed. The diamond potential of this pipe will be evaluated from the indicator mineral geochemistry. Field crews have recently mobilized to the Amazon Region in order to complete a first phase sampling program on the Macapa Project located in Amapa State. Historically, the area has produced gem quality diamonds from a number of alluvial deposits located in the streams and rivers. An evaluation of a government airborne magnetic survey has revealed a number of circular magnetic anomalies, which could conceivably represent source pipes for diamonds. The aims of the field program are to field check these anomalies as well as undertake reconnaissance sampling over an area of approximately 1,000 square kilometres. The program is expected to run for five weeks. Canabrava Diamond Corporation is 52 percent owned by Southwestern Gold Corporation (SWG-T). Rory O. Moore, President and CEO -30-