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Gold/Mining/Energy : Spider Resources - SPQ.ASE -- Ignore unavailable to you. Want to Upgrade?

To: Mr Metals who wrote (385)	2/19/1999 2:03:00 PM
From: bill	Read Replies (1) \| Respond to of 471

Here you are, folks. The potential in Brazil for diamonds. It's not just a fantasy. Black Swan Gold Mines Ltd. is pleased to report that commissioning of the pilot plant at its Coromandel alluvial diamond project in the State of Minas Gerais, Brazil is progressing well. This plant has been constructed in a remarkably short time. It is more than meeting expectations and is already recovering diamonds from test materials. Close to 16 carats of diamonds, with an average value of over U.S.$230 per carat, were produced from the first 500 cubic metres of gravels processed. Following the current holiday period in Brazil, the plant throughput will be increased in stages to exceed 500 cubic metres per day. Bulk sampling, with samples drawn on a representative basis from all of the areas to be mined, will commence after the seasonal rains, in late March or April. Black Swan is also commencing an exploration program to investigate primary sources of diamonds in kimberlite/lamproite pipes and intrusives. Its properties in Minas Gerais include a number of targets. It is encouraged by activities of other companies, including a major company investigating a pipe in the Serra da Canastra region, where Black Swan has large holdings. Following the rains, Black Swan will extend its drilling program to targets in its adjoining properties in the Coromandel district that have potential for large volumes of pay gravels. Provided successful operations can be established at the first site at Coromandel, other sites may be brought into production in sequence. It should be noted that the fall in value of the Brazilian currency, the Real, improves the economics of the Company's proposed projects in Brazil. Prior to the adoption of a floating exchange rate, the Real was over-valued and costs in dollar terms were significantly higher than will be the case in future.