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Gold/Mining/Energy : Kalahari Resources Makes Major Move Upwords -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (276)	4/2/1999 7:47:00 PM
From: Andrew	Read Replies (1) \| Respond to of 349

Hi Red on all of the ground which SUF is working on this year and where the discovery was made the breakdown is. SUF 70% KLA 19.38% IAR 10.62% Cheers, Andy

To: Rocket Red who wrote (276)	4/5/1999 1:12:00 PM
From: Tom Cat	Read Replies (1) \| Respond to of 349

red, thought this was interest to you TC SouthernEra talks boulders SouthernEra Resources Limited SUF Shares issued 25,980,645 Apr 1 close $5.90 Mon 5 Apr 99 Street Wire BOLDER BOULDER TALK by Will Purcell SouthernEra Resources Limited reported progress March 31 on several of its Northwest Territories diamond projects. Of primary interest was the statement that the ongoing quest for the source of the large kimberlite boulders previously found on the shoreline of Munn Lake may be nearing a successful conclusion, thanks in large part to the extensive sonic drill program undertaken this year. The boulders are part of what is commonly described as the "Yuryi" indicator mineral train. The release reported that the results suggest the boulders "...are derived from an inferred north to south trending, steeply dipping, kimberlite body". The size and depth of this body are not known at this time, however it appears to be at least 105 metres in strike length. Two of the vertical sonic drill holes bottomed in kimberlite bedrock, indicating a thickness of at least 1.4 metres. Sonic drills do not penetrate bedrock to any great depth. A Kalahari spokesman stated that "one to two metres is the maximum depth of penetration". The presence of pyropes and other indicator minerals and a visual study of the material itself suggest this kimberlite resembles that from the boulders. The chemical analysis to confirm this is underway, with results pending. The lack of a definite thickness and complete absence of a third dimension leaves the shape and form this body takes open to much question. While no pipes have as yet been found on the Back Lake property, the area is within 20 kilometres to the northeast of two pipes previously discovered on the Camsell Lake property, and within 40 kilometres to the northwest of four pipes found on the Mountain Province, Monopros, and Camphor joint venture. Previous drilling in the Munn Lake area has encountered a number of kimberlite dyke intersections. At least 13 such intersections have been reported, with thicknesses of up to 1.5 metres. The material found in these dykes was described as being "different from fragments found on surface", however. The Snap Lake dykes discovered by Winspear and Aber Resources lies roughly 50 kilometres to the west of Munn Lake. The SouthernEra release notes that the kimberlite occurrence lies within a north-northwest trending lake bottom depression, and the southernmost sonic drill hole intersecting kimberlite lies within 100 metres of shore and in 20 metres of water. Spokesmen for both SouthernEra and Kalahari were careful to describe the occurrence as a "kimberlite body" only. Prior analysis of almost 600 kilograms of kimberlite from this boulder train yielded 226 diamonds, of which 62 were classified as macro diamonds, having one dimension exceeding 0.5 millimetres in length. Of these, one weighed a reported 0.12 carat or twelve points, with another reported to be 3 points, and three others weighing one point. These weights would correspond roughly to a longest dimension exceeding 3 or 4 millimetres, 2 millimetres, and 1 millimetre respectively. The majority of the diamonds recovered were reported to be "clear and colourless". These results were considered encouraging. Roughly half of the reported kimberlite occurrences in the Northwest Territories are diamondiferous, however comparatively few have encountered larger stones. The Munn Lake boulder sample yielded a macro to micro ratio of 0.38. This compares fairly well with larger samples from the Diavik project at Lac de Gras. The A-21 pipe also had a cumulative 0.38 macro to micro ratio reported from almost 1400 kilograms of sample. Other Diavik pipes had a higher ratio, however. The A-154 South pipe for example had a cumulative ratio of 0.54, attained from over two tonnes of kimberlite. The presence of larger macros is considered to be of more importance than macro ratios. The Diavik pipes appear to have a greater number of larger macros. Pipe A-21 contained a total of four diamonds exceeding 3 millimetres in length in a sample roughly twice the size of that taken from the Munn Lake boulders. Pipe A-154 North yielded at least two such stones from samples totalling just over one tonne. The frequency of larger macros at the two main Diavik pipes, A-418 and A-154 South was significantly higher than these figures, however. The caustic fusion results of samples from the kimberlite dykes at the Camsell Lake joint venture operated by Winspear Resources also yielded a higher frequency of larger diamonds than the Munn Lake results. The comparatively small size of the samples undergoing caustic fusion does not allow one to draw definitive conclusions. It is important to note that the Munn Lake boulders do contain larger macro diamonds. The Munn Lake area is part of the Back Lake claim block. SouthernEra is the operator and holds a 70 per cent interest. Kalahari Resources holds a 19.38 per cent interest, and is not required to provide any exploration funding. The remaining 10.62 per cent is controlled by Island-Arc Resources Corp. It is worthy to note, that should a significant diamond discovery be made, Kennecott Canada Inc. has the right to "back in" for a 30 per cent interest. In this event, Kennecott must pay a premium amounting to 150 to 200 per cent of it prorated exploration costs incurred to that point. The market's reaction to the announcement was markedly different for the three joint venture partners. SouthernEra closed up five cents to $5.90 on 23,000 shares. This was the lowest volume in the past four trading days. Island-Arc moved up 10 cents to 35 cents on 150,000 shares. Kalahari, promoted by the ever enthusiastic Bert Applegath, was by far the most active, jumping 20 cents, or almost 70 per cent, to close at 49 cents on just under 900,000 shares. The number of Island-Arc and Kalahari shares changing hands were the highest in the past three months. Market interest should remain fairly high with a diamond drill now actively probing the prospective source. A future release should provide a much clearer picture of the kimberlite body's areal extent, thickness, and shape. In addition, the caustic fusion results of any kimberlite encountered will prove interesting, should a sizable sample of kimberlite be recovered from the diamond drill program.