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

To: DIAMOND JIM who wrote (3365)	5/14/1999 8:38:00 PM
From: Rocky510	Respond to of 7235

Hi Jim, I find the report merely states facts and shows little enthusiasm one way or the other. SUF did not write off Munn Lake. They did state that the sill would be uneconomical unless wider widths could be found but remember it is still open along strike and downdip. Nothing was said about other targets in the lake nor the rest of the property. It would certainly be a mistake to write off this property with good diamond chemistry next door to WSP's discovery! We will all probably get a little more enthusiastic about Yamba also as exploration unfolds. I am enthusiastic about most of SUF's projects. It's the market that is wrong IMO. Best regards, Jimmy

To: DIAMOND JIM who wrote (3365)	5/15/1999 12:34:00 AM
From: Gord Bolton	Respond to of 7235

newswire.ca "The M3 kimberlite was discovered during previous exploration work and initial drilling delineated an elongated kimberlite body with a strike length of 100 metres and a true width of up to 10 metres. The kimberlite is overlain by 3 metres of sand and grit and 6 metres of gravel. A sample trench was excavated across the kimberlite, perpendicular to the strike, and a 154 tonne bulk sample of the top 2 metres of the gravel horizon was treated in SouthernEra's 100 tph plant. 211.5 carats were recovered, including one special stone weighing 13 carats, from this sample yielding a grade of 137 carats per hundred tonnes (cpht)." We have a little hint that the M3 gravels and kimberlite will be worth running through the plant. Finding a 13 carat stone in a 154 tonne sample is really nothing short of spectacular and would indicate that there would be many more special stones to come from this location. I would expect that this is the reason why they have focussed exploration activity on this particular anomaly. I do not think that they have added two 50 tph additions but they have increased capacity more than just the 50 tph and 10 tph. From the annual report: A second thickener was ordered in late 1998 and commissioned in January, 99. A new recrush crusher has been ordered and will be installed in April 99. A decision was made to add a second processing plant rated at 50 tph, immediately adjacent to the existing 100 tph plant to process Klipspringer ore. I am a little bit concerned about the rationing stuff as well as the drop in price per carat. I can certainly see why others would be asking questions. diamondregistry.com "Total Russian sales to De Beers in 1998 will total somewhere around $900 million, well above the guaranteed minimum. With the ruble recently devalued, the Russian government bankrupt, and the same government owning 32% of Alrosa, it seems safe to speculate that that total will not fall to the minimum guaranteed. In effect, De Beers has increased its share of the world diamond supply to 80%. "It's important that the biggest producers cooperate closely and inspire confidence in the diamond market," said Nicky Oppenheimer, chairman of De Beers Centenary." I kind of thought that 1998 was a low point for the diamond market. There was no rationing here-in fact it seems quite the opposite. Of course if De Beers was not buying the Russian stones, I expect that they would be finding their way to market through other channels. For those who have not checked the 1Q on the web site, it does contain a great deal more info than the little blurb in the news. southernera.com Go Investor info Go annual reports.