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Gold/Mining/Energy : Black Swan -- Ignore unavailable to you. Want to Upgrade?

To: William Whitehead Jr. who wrote (3133)	3/19/1999 10:35:00 PM
From: John Fairchild	Read Replies (1) \| Respond to of 3186

Whitey, What do you mean by suggestions of 75,000 c are realized? I have not had a chance to talk to the company yet to get an update. Lots of questions. They are now achieving 500 cubic meters/day at Gamela. When do they expect to ramp up to the 1,000/day? What are production costs? From Feb 17 NR. Black Swan is also commencing an exploration program to investigate primary sources of diamonds in kimberlite/lamproite pipes and intrusives. When can we expect an update on this exploration? Brazil diamond exploration appears to be heating up and BSW appears to be well positioned with people, property and cash. Should be an exciting play with lots of news with the rainy season coming to an end. They have put out three News Releases in March so it looks to me like the promotion has begun. John

To: William Whitehead Jr. who wrote (3133)	3/22/1999 3:25:00 PM
From: John Fairchild	Read Replies (1) \| Respond to of 3186

I just spoke with Stephen Fabian (President)for an update. You are right Whitey, it was a pleasure to speak with him. So far they have processed 9,000 cubic meters. These gravels which are currently being processed are on the terraces. The prime areas of gravel (higher grades according to the geologists) are on the flats which can be accessed after the rainy season. There is a high percentage of fancy stones in the .75 carat range which they are not recovering right now with the current state of the wash plant. Part of the modification to the plant as it is ramped up to the 1000 cubic meters per day output will be to allow for recovery of these smaller valuable stones. They are also going to add a gravity circuit for gold recovery. These gravels contain ~.3 grams of gold per cubic meter which is a significantly higher grade than was anticipated. Current cost of processing the gravel is about $3/cubic meter. Diamond taxes in Brazil use to be 18% and as a result their was very little disclosure by the locals. The tax has since been reduced to 1.4% which is enhancing commercial production. They are continuing to stake more ground and the current plans are to get about 4 wash plants up and running. The amount of ground they hold right now gives them potential for hundreds of millions of cubic meters to put into production. They sound very concentrated and focus on this new plan to produce cash flow from the alluvial deposits. John