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Gold/Mining/Energy : A CANADIAN DIAMOND HUNT -- Ignore unavailable to you. Want to Upgrade?

To: E. Charters who wrote (459)	4/5/1999 7:04:00 PM
From: Diamond Daze	Read Replies (1) \| Respond to of 930

This is the girl next door...... South Atlantic Resumes Testing of Alluvial Diamond Deposit in Brazil VANCOUVER, BRITISH COLUMBIA--South Atlantic Resources Ltd. (the "Company") is pleased to announce the resumption of testing operations at its Santo Antonio alluvial diamond deposit in Brazil. The Santo Antonio alluvial diamond deposit is located 30 kilometers northwest of the town of Coromandel in the western part of the state of Minas Gerais. The deposit consists of diamond-bearing river gravels along a 20 kilometer stretch of the Santo Antonio River valley. The Company's pilot plant, designed and constructed in 1997, operated for six months as part of a systematic program to evaluate the economic viability of the Santo Antonio deposit. The largest stone found was a 15.8 carat, white, irregular-shaped stone with an estimated value of $2000 per carat. The current program is designed to continue the evaluation of the deposit with the objective of completing the technical database required for making application to the National Department of Mineral Production (DNPM) for mining licenses allowing for full-scale commercial exploitation of the deposit. The current test program has been in operation for two weeks, and a total of approximately 600 cubic meters of gravel have been processed. Eight stones have been found so far, the largest weighing 5.6 carats with an estimated value of $1000 per carat. This program is expected to be completed within the next three months. The viability of the Santo Antonio alluvial deposit is based on history of extremely large stones which have been found over the years by local artisanal miners ("garimpeiro"). The deposit has been the source of numerous diamonds weighing in excess of 100 carats over the last 50 years. No commercial scale production has ever been undertaken although the sixth largest diamond in the world, known as the "President Vargas" weighing 726 carats in the rough, was recovered by garimpeiros in 1938. A stone weighing 602 carats was reported in the local newspaper in 1995. The Company has initiated studies for the design and procurement of a commercial scale diamond recovery plant using the most recent technological developments in processing diamond-bearing gravels. These developments involve improvements in price and capacity of X-ray sorting machines capable of treating high volumes of gravel designed specifically for the recovery of very large diamonds. ON BEHALF OF THE BOARD Edward F. Posey, President