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

To: E. Charters who wrote (465)	4/6/1999 7:16:00 PM
From: Diamond Daze	Respond to of 930

HMMMMMMMMM INDEED !!!! SouthernEra and Canabrava Join Forces in Brazil. TORONTO, April 6 /CNW/ - SouthernEra Resources Limited (SUF - TSE) and Canabrava Diamond Corporation (CNB - V) are pleased to announce that they have signed an agreement to explore for and develop the Canabrava Project diamond properties in Brazil. The Canabrava Project is located 400 kilometres southeast of Brasilia and comprises approximately 480,000 hectares of exploration concessions. The Canabrava Project is located on the southwestern margin of the Sao Francisco Craton within the Upper Cretaceous Alto-Paranaiba Igneous Province. This is one of the largest alkaline igneous provinces in the world. Kimberlites and lamproites, both of which can host economic amounts of diamonds, fit within this category of alkaline igneous rocks. The region is well known for its production of large, high quality gem diamonds. More than 50 diamonds weighing between 100 and 726 carats have been reported from the area. Brazil was the world's major diamond producer prior to the discovery of diamonds in South Africa. Exploration work on the Canabrava Project in Brazil is well advanced and includes extensive airborne and ground geophysical surveys, geochemical sampling and drilling. This work has been successful in locating more than 100 kimberlite and lamproite pipes. Only eight of these pipes have been tested for micro-diamonds. Of these, three returned positive counts. In addition, more than 500 geophysical and/or geochemical targets remain to be tested. Work completed by Canabrava over the past 6 months has identified a number of targets with excellent mineral chemistry. These targets will be the immediate focus of the Joint Venture exploration programme. Under the terms of the Agreement, SouthernEra can earn a 50% interest in the Project by spending a total of US$20 million over 7 years. US$1.5 million must be spent by SouthernEra within the first 24 months of the agreement. SouthernEra will have an option to reduce the US$20 million earn-in obligation to US$15 million by subscribing for a Private Placement for US$1 million worth of Canabrava shares (at the then current market price) on or before 10th December, 1999. Once SouthernEra has earned its 50% interest, exploration expenditures will be made by both parties on a pro rata basis. Where the management committee determines that a feasibility study is warranted within a designated part of the Project or where an aggregate of US$20 million has been incurred by the Joint Venture, SouthernEra will have the right to earn a 60% interest in each Specific Project Joint Venture by funding 100% of the cost of the feasibility. SouthernEra will, furthermore, have the right to increase its interest to 70% by assuming 100% of the construction costs to commercial production. SouthernEra will recover the construction costs out of 90% of net operating cash flow. A one-time cash payment of US$5 million will be paid to Canabrava within a time period of less than 5 years following commencement of commercial production. In addition to primary source diamond deposits, the Canabrava Project Properties host a number of potentially significant alluvial diamond deposits which have and still are producing both large and high quality, fancy, coloured diamonds of considerable value. The fancies include pink, blue, green and cognac coloured diamonds. SouthernEra will have the right to dedicate up to 20% of its earn-in commitment to explore and develop the secondary alluvial diamond deposits on the Canabrava Project. During the earn-in period, SouthernEra will be entitled to 50% of the net operating cash flow from the alluvial deposits. When SouthernEra earns a 60% interest in any property, SouthernEra's interest in the alluvial diamonds will be increased to 60%. SouthernEra's interest will be further increased to 70% with the commencement of commercial production of a primary diamond mine. A colour photograph of recent production of fancy diamonds will be posted shortly on SouthernEra's web site. SouthernEra brings to the Project proven expertise and an enviable discovery record both in Canada and in southern Africa. Canabrava Diamond Corporation is 59.6% owned by Southwestern Gold Corporation (SWG-T) and is actively exploring for diamonds in Brazil and Canada. Chris Jennings, President of SouthernEra Resources Limited remarked that SouthernEra is committed to growing the company and increasing shareholder value by discovering new diamond sources in prospective areas of the world.

To: E. Charters who wrote (465)	4/8/1999 9:52:00 PM
From: Famularo	Read Replies (1) \| Respond to of 930

Mountain Province's sample drilling of AK claims completed Mountain Province Mining Inc MPV Shares issued 42,444,760 Apr 7 close $2.30 Thu 8 Apr 99 News Release Also Camphor Ventures Inc (CFV) Mr. Jan Vandersande reports The bulk sample kimberlite extraction from Mountain Province Mining's four diamond pipes on the AK claims in the Northwest Territories of Canada has been completed. Bulk sample drilling started on Jan. 16 and was completed on April 6. A total of 1,666 tonnes of kimberlite has been extracted. Planned delineation drilling of the four pipes was completed in mid-March. Exploration drilling started on March 31, 1999. Bulk Sample Program Monopros Ltd., a wholly owned subsidiary of De Beers Consolidated Mines Ltd., and the project operator, late last year formally committed to a bulk sample program of the four pipes at an estimated cost of approximately $14-million. Bulk sample drilling, using two 12.25 inch diameter reverse circulation (RC) drills started on Jan. 16 and was completed on April 6. A total of 1,666 tonnes of kimberlite was extracted from a total of 43 holes drilled into the four pipes to depths of up to 300 metres. At the completion of drilling 575 tonnes were extracted from the 5034 pipe, 454 tonnes from the Hearne pipe, 460 tonnes from the Tuzo pipe and 177 tonnes from the Tesla pipe. objective of sampling approximately 1,600 tonnes of kimberlite by mid-April has been achieved and it is estimated that approximately 1,000 carats of diamonds from each of the Hearne, Tuzo and 5034 pipes will be recovered. This should be sufficient to model grades and values per tonne for each of these pipes. It is anticipated that the sample from the Tesla will produce approximately 65 carats, which together with previously recovered diamonds from this body, will allow an improved estimate of the potential of this pipe. The kimberlite samples are currently being processed in Canada and the sample concentrates will subsequently be shipped to South Africa for final recovery of the diamonds. Results are expected during the course of this summer. Delineation A delineation core-drilling program commenced early in December and was completed mid-March. A total of 16 holes were drilled. The angled drill holes have provided additional information on the contacts of the four kimberlites at depth. A few of the delineation drill holes have longer kimberlite intersections than were expected, based on the initial estimates of the dimensions of the Hearne and the Tuzo pipes. On the Tuzo pipe, two angled holes intersected significant lengths of kimberlite (185 and 191 metres horizontally projected) at depth in the east-west and northeast to southwest directions. These intersections indicate that the Tuzo pipe broadens out at depth in these directions. These two holes terminated at depths of 340 and 357 metres. This enlargement of the pipe at depth should increase the resource size of the Tuzo body, possibly significantly. Results from this delineation drilling program will be combined with earlier exploration and delineation drill results and then computer modelled to obtain improved resource tonnage estimates for the four pipes. Exploration A comprehensive exploration program is planned for the upcoming weeks as part of continuing efforts to discover additional kimberlite occurrences. During the summer of 1998, 945 till samples were collected on the AK claims and 893 on the CJ claims. Most of the results of this sampling program (both visual sorting and microprobe analyses) have been received. These results are being evaluated in conjunction with previous sampling results and the numerous geophysical anomalies that have been identified. An additional indicator mineral train approximately 10 kilometres northeast of Kennady Lake has been confirmed. The most promising targets on the AK claims will be drilled during the weeks ahead. Exploration drilling, initially in and near Kennady Lake and then on other parts of the claims started on March 31. The company is pleased with the progress of Monopros' work, especially considering the large size and the complexity of the bulk sampling program that has just been completed. Also, the company is encouraged by the results so far and is looking forward to the exploration program and the results this summer. The AK and CJ claims, in the Northwest Territories of Canada, are held 90 per cent by Mountain Province Mining, and 10 per cent by Camphor Ventures. As reported in Stockwatch March 10, 1997, Mountain Province Mining and its partners have entered into a joint venture agreement with Monopros, under which Monopros has the right to earn up to a 60 per cent interest in the AK and CJ properties.