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

To: Confluence who wrote (2662)	3/31/1999 9:03:00 AM
From: Rocky510	Read Replies (1) \| Respond to of 7235

SouthernEra's Marsfontein results SouthernEra Resources Limited SUF Shares issued 25,980,645 Mar 30 close $6.20 Wed 31 Mar 99 News Release Dr. Chris Jennings reports: A number of new anomalies have been confirmed by soil sampling and trenching on the farm Marsfontein, South Africa, (60 per cent De Beers and Partners/40 per cent SouthernEra). Exploration and evaluation by the joint venture continues in an effort to increase ore reserves by finding new kimberlite and gravel resources. Mining of the M1 pipe commenced on Aug. 31, 1998, and continues satisfactorily. As of March 20, 1999, diamond production from the M1 pipe has totalled 723,631 carats from 195,135 tonnes treated. The new 50 tonne per hour dense medium separation recovery plant has been successfully commissioned and is now processing bulk samples from gravels overlying the M3 kimberlite. The objective is to obtain a 2,000 tonne bulk sample of the kimberlite from below the gravels for evaluation purposes. Marsfontein M1 mining results Mining commenced on Aug. 31, 1998, and as at March 20, 1999, 195,135 tonnes had been treated to produce 723,631 carats yielding a recovered grade of 371 carats per hundred tonnes (cpht). The value of the 528,754 carats produced to the end December, 1998, was $83.34-million (U.S.). Ten diamonds greater than 35.5 carats each have been recovered to date with the five largest being +400, 99.6 and 88.1, 42.7 and 42.2 carats respectively. According to De Beers, the +400 carat stone comprises five broken pieces with another +70 carat piece still missing. The breakage was likely to have been caused naturally as very few fresh breakage areas are evident. In January/February 1999, 137,837 carats were produced from 52,241 tonnes treated at a recovered grade of 264 cpht. This consisted of a mix of low grade gravel and kimberlite as the high clay content of the weathered kimberlite on its own, was causing throughput problems in the plant. The M1 pit is currently 250 metres in diameter and has been mined to a depth of approximately 40 metres. Both primary and weathered kimberlite are occurring at this depth. Mining is progressing at 40,000 tonnes of ore per month. Waste stripped to date is 2.2 million tonnes. In addition to the waste stripped, low grade gravels overlying the pit and low grade M8 fissure/diabase stringer ore have been stockpiled around the perimeter of the pit. The following table illustrates current and additional reserves and resources at M1. Tonnes Grade (cpht) Remaining in situ kimberlite ore to 100 metres 446,000 247 Remaining kimberlite ore between 100 to 150 metres 154,000 161 Gravel stockpile 225,000 22 M8 fissure/diabase stockpile 375,000 32 Grades on the latter three resources are based on relatively little sampling and may turn out to be either higher or lower than stated. Planning is ongoing to extend the pit to a depth of 150 metres and based on a mining rate of 40,000 tonnes per month, M1 will be mined to the 150 metre level by July 2000. Thereafter, the current stockpiles of lower grade gravels and M8 fissure/diabase material will extend the life of the M1 deposit until October 2001. More delineation drilling is required to confirm the resource below 150 metres. New exploration results listed below could extend the above resources on Marsfontein. Marsfontein exploration results M1 gravels: Results from the soil sampling to the south of the M1 pipe revealed a strong indicator mineral anomaly with the presence of diamonds in some samples. Preliminary trenching of this large anomaly intersected thick overburden which contains gravel horizons. These gravels will be evaluated in the near future. M3: This kimberlite body, measuring 100 x a maximum of 10 metres is overlain by thick potentially diamondiferous gravels. Further gravel potential exists to the south of the body. These gravels remain to be tested for diamond content. Bulk sampling and processing of the diamondiferous gravels overlying M3 has commenced through the new SouthernEra 50 tonne per hour treatment plant. The objective is to expose the M3 kimberlite in order to take a 2,000 tonne bulk sample to determine its grade and obtain a value for the diamonds. M4: Multiple fissures have been intersected by 11 core holes in this area. M5: Garnet and spinel indicators occur on a 400 metre by 400 metre soil anomaly. M6 and M7: Indicator mineral anomalies which measure approximately 100 metres by 200 metres. M8: This kimberlite fissure has been intersected by core drilling to the east and west of the M1 pipe. During the course of mining the M1 pipe, the fissure has been exposed in the pit. Much of this ore consists of a zone comprised of kimberlite veinlets within diabase which varies from five metres to 10 metres in width. Previous bulk sampling indicates a grade of 32 cpht. At depth on the east side of the M1 pit, the veinlets converge into the form of a fissure. A minibulk sample of pure kimberlite is to be taken and will be treated to establish grade and value of the M8 fissure. M9: This is a coincident indicator mineral anomaly and 40 metre by 50 metre gravity anomaly, similar to the M1 and M3 gravity anomalies. M10, M11 and M12: An extensive indicator mineral anomaly extends some three kilometres to the southwest of the M1 pipe. Three intense anomalies have been identified within this feature (M10, 11, and 12). These areas of concentrated indicator minerals might indicate the possibility of additional blows and pipes. Over 2,000 soil samples have been taken over the whole of Marsfontein farm since September, 1998, in an ongoing exploration programme. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com