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

To: gemsearcher who wrote (2961)	4/16/1999 12:57:00 PM
From: PHILLIP FLOTOW	Respond to of 7235

Here it is: SouthernEra to complete acquisition of 51% interest in Camafuca kimberlite TORONTO, April 16 /CNW/ - SouthernEra Resources Limited (SUF-TSE) today announced that its Board has approved the final payment of USD$6.5 million to the Sphere Trading Group of South Africa to complete the acquisition of a 51% interest in the Camafuca kimberlite project in northeastern Angola. The Camafuca kimberlite is one of the world's largest undeveloped diamond resources, and has been undergoing an extensive evaluation program by SouthernEra for the past 14 months. The payment will be made 50% in cash and 50% in SouthernEra shares. This will result in an issuance of 880,750 shares valued at CAD$5.50 per share, and a cash payment of USD$3.25 million (CAD$4,844,125), at a Canadian/US dollar exchange rate of 1.4904. SouthernEra expects to complete a pre-feasibility evaluation of the project by yearend. Currently all drill core from the 1998 large diameter core program is undergoing diamond recovery testing at the Company's 10 tonne per hour test plant located at the Klipspringer site in South Africa. Processing of a 15,000 tonne bulk sample at the Camafuca site will begin next week. Delays in processing the material have been caused by logistical considerations. Results are expected by the end of the second quarter. A 22-hole geotechnical drilling program to study the upper 50 metre weathered zone of decomposed kimberlite was completed in late March. The results will be used to generate an evaluation study for utilizing cutting head dredge technology to mine the shallow higher grade portions of the kimberlite body. All previous geological and diamond grade data has been modeled and reviewed by an independent consulting firm, The Mineral Resources Development Institute (MRDI). The review by MRDI has confirmed that the database represents a minimum diamond resource for the kimberlite areas bulk sampled in the past. This information indicated a calculated resource of 8.9 million carats to a depth of 80 metres below surface. A small parcel (approximately 1,400 carats) of diamonds recovered from the earlier program was valued at USD$85 per carat in 1997. The Camafuca kimberlite represents a major undeveloped diamond resource, and the SouthernEra evaluation is focussing on initial production from higher grade areas of the pipe, using low capital and operating cost dredge technology. %SEDAR: 00004535E -30- For further information: 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, Web site: www.southernera.com PHIL