SouthernEra Resources Limited New results from Marsfontein
- 723,631 Carats To Date From Marsfontein M1
- New Anomalies at Marsfontein.
- New 50tph Plant Commences Treatment of Bulk Sample from M3 Gravels
- 10 Diamonds Recovered in 35 to 400 Carat Range.
TORONTO, March 31 /CNW/ - Dr. Chris Jennings, President of SouthernEra
Resources Limited (SUF-TSE) is pleased to report that a number of new
anomalies have been confirmed by soil sampling and trenching on the farm
Marsfontein, South Africa, (60% De Beers and Partners / 40% 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 31 August, 1998 and continues
satisfactorily. As of 20th March 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 31 August, 1998 and as at 20th March, 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 U.S. $83.34 million. Ten diamonds
greater than 35.5 carats each have been recovered to date with the 5 largest
being +400, 99.6 and 88.1, 42.7 and 42.2 carats respectively. According to De
Beers, the +400 carat stone comprises 5 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 - 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 150m
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 x 400 metre soil anomaly.
M6 & M7: Indicator mineral anomalies which measure approximately 100 x
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 5 - 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 mini bulk 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 40x50 metre
gravity anomaly, similar to the M1 and M3 gravity anomalies.
M10, M11 and M12: An extensive indicator mineral anomaly extends some 3km
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.
%SEDAR: 00004535E
-30-
For further information: please contact: Christopher M.H. Jennings,
President, A. Lee Barker, Senior Vice-President, Kim Freeman, Vice-President,
Operations, Frank van de Water, Vice-President, Finance, Nicholas Sayce,
Investor Relations, Phone: (416) 359-9282, Fax: (416) 359-9141, e-mail:
inbox@southernera.com, Website: southernera.com |
