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

To: Claude Cormier who wrote (2770)	4/7/1999 4:29:00 PM
From: Gord Bolton	Respond to of 7235

Claude, one has to give some consideration to the parties involved. The fissure system is believed to be at least 14 kilometers long with blows and pipes along the way with several fissures running parallel. Diamondiferous gravels all around. Seems to be another pipe aside from M3 which may be larger than M1 in Marsfontein. The inferred tonnage on the fissure itself is huge and studies are ongoing as to how to exploit it in a timely fashion. Plant capacity was just increased by 50%. That should not be seen as an indication that they are about to run out of ore. My bet is that plant capacity will be increased again by 100% within a year.

To: Claude Cormier who wrote (2770)	4/7/1999 4:44:00 PM
From: gemsearcher	Read Replies (1) \| Respond to of 7235

Hello Claude. I agree. The market will only afford a reasonable multiple to SUF if there is reasonable assurance that current cash flow is sustainable after M1 is depleted. Another mine, with proven reserves that would generate cash that would bridge the difference between M1 cash flow and projected Klipspringer cash flow , would achieve this result. My strong bet is that , with all of the exploration currently going on , the company will find that mine. When that happens and other exploration/deal news comes in , the multiple will move to 8-10x CFPS and the market will go gaga over the blue sky. Regards.gemsearcher.

To: Claude Cormier who wrote (2770)	4/8/1999 8:35:00 AM
From: Gord Bolton	Read Replies (1) \| Respond to of 7235

From the 1998 3rd quarter Yamba Lake During the third quarter an agreement was reached with Tanqueray Resources and Cypango Ventures, whereby the Company has the right to earn a 51% interest in the Yamba Lake property which adjoins the northern boundary of the BHP-DiaMet Ekati diamond mine at Lac de Gras. Five kimberlite pipes have been discovered on the property and considerable potential exists for finding new pipes. The terms are that SouthernEra is to spend $1 million in the first two years and a total of $5 million over 4 years to earn a 51% interest. In September, over 1,000 till samples were collected to test both airborne geophysical targets and areas that have returned positive indicator results from previous sampling. The samples will be processed during the fourth quarter, with drilling planned for March, 1999. SUMMARY With the successful start-up of operations at Marsfontein, the Company has entered into a new phase of its development, with adequate cash flow to finance an aggressive exploration program in both Africa and Canada and allow it to consider further growth by means of possible mergers or acquisitions. The M-1 pipe now has a currently indicated mine life of at least two and a half years at current production rates and the Company is confident that the development to production of the Klipspringer fissure systems and other kimberlites will assure a long and continuous mine life in the Klipspringer area. Progressive exploration work in Canada's Northwest Territories, and the possible acquisition of other properties with new discovery potential indicates a continuing commitment to exploration in Canada's north. We look forward to being able to report continuing success in the coming months. Christopher M.H. Jennings President Toronto, Ontario October 23, 1998 Previous reports from CAV/TQY indicate that there are 6 known diamondiferous pipes on the Yamba Lake Claims. SUF has to date identified an additional 30 targets. Property adjacent to EKATI 8 targets identified on SUF/Kennecott property adjacent to DIAVIK. 3 targets at Back lake adjacent to MPV/DEBEERS. Drills turning on all projects! CF results from the Kennecott pipe due now. Report on drilling Munn lake target due soon. Reports from Yamba-anytime. TQY up 33% yesterday on low volume!