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

To: Gord Bolton who wrote (2301)	12/21/1998 8:51:00 PM
From: VAUGHN	Read Replies (1) \| Respond to of 7235

Hello Gord This on the wire when I checked: DiamondWorks Updates Status of Operations in Africa VANCOUVER, Dec. 21 /CNW/ - Bruce Walsham, President and CEO of DiamondWorks Ltd., today provided an update on the company's activities in Angola and Sierra Leone. Angola ------ Mr. Walsham said that the company is following every avenue to locate its 10 employees missing after the November 8th attack on the company's Yetwene diamond mine in northeastern Angola. There is no new information to report at this time, although the company remains hopeful as to their safety. Mr. Walsham said that good progress had been made in the company's preparations for a resumption of production at the Yetwene mine. Physical security enhancements at the mine, recommended following an extensive review of company's security arrangements, are now nearing completion. DiamondWorks is planning to resume operations at Yetwene in late January. Mr. Walsham cautioned that, while the company has rescheduled payments with a number of its creditors in light of the shutdown at Yetwene, the necessary funding to recommence operations is not yet in place and discussions to this end are still ongoing. Each month of lost production is costing the company approximately US$ 2 million. Diamond production at DiamondWorks' Luo mine, located about 100 km south of the Yetwene mine, is averaging about 200 carats a day, approximately 50% higher than the company's previous forecasts. DiamondWorks is currently mining alluvial gravels overlying the 28-hectare Camatchia kimberlite pipe, on the west side of the Chicapa River. Roughly 40% of the diamonds produced from these gravels this month are larger than one carat, including some 15 specials (gem diamonds larger than 10 carats). The company currently has approximately 5,000 carats in inventory. Sierra Leone ------------ Mr. Walsham said that the company has been advised that rebel forces have overrun the town of Koidu and areas surrounding the company's Koidu mine, in eastern Sierra Leone. DiamondWorks has not been active at Koidu since May 1997 due to security concerns. The company has temporarily withdrawn its security personnel from the mine as a precautionary move. ECOMOG, the Nigerian-led peacekeeping force, has also temporarily withdrawn its troops from the Koidu area. An ECOMOG spokesman stated that they intend to return to the area as soon as possible. DiamondWorks plans to send its security team back to the minesite as soon as conditions permit. Regards & Merry Christmas