Hi Bob,maybe Paul should read this old news release about Sierra Leone
now that the country is on the road to peace.The chart at the bottom of the article says it all and I don't think the present market price of Rex has Sierra Leone factored in.
gg
just my h.o.
Independent Consultant Values Tongo Fields at US$3.3
Billion;
18.9 million carats at US$175/carat
Toronto, January 28, 1997 ¾ Rex Diamond Mining Corporation today announced
the results of the appraisal of its Tongo Fields properties in Sierra Leone.
Dr. Luc Rombouts Rex's consulting geologist reports:
"Sierra Leone currently produces about half a million carats per year worth
US$200 to US$300 per carat. In average value, Sierra Leone is second only to
Namibia, but with much more frequent occurrences of exceptionally large stones
(970 and 770 carat stones). Since the discovery of diamonds in Kono in 1930,
Sierra Leone has produced more than 50 million carats. In the 1950's and 1960's
diamond production peaked at 2 to 3 million carats per year placing Sierra Leone
second only to South Africa in total value. Virtually all production was from
alluvial sources. Known source rocks are the kimberlite dykes (fissures) and
small pipes of the KOIDU and the TONGO-PANGUMA areas. Recently, local
diggers started working the large alluvial deposits in the ZIMMI region of
Southern Sierra Leone.
Rex Diamond Mining Corporation has obtained leases covering the most
promising parts of TONGO and ZIMMI areas. The PANGUMA-TONGO dyke
trend covers an area of 30 km by 6 km wide. The Rex Diamond Mining
Corporation lease covers the eastern half of the PANGUMA-TONGO belt and
includes the most important kimberlite dyke zones: the LANDO, KUNDU,
TONGO and PEYIMA dykes (fissures). The Tongo kimberlite dykes have been
sampled, drilled and worked at the surface in the past. Workings never extended
deeper than 15 m.
The TONGO dykes are very rich (up to 3 carats/tonne) and constitute an
important high quality diamond resource. The continuity of the dykes with depth
has been proven down to 100 m by drilling by SELECTION TRUST. Over a total
strike length of 14,400 m and a depth of 1,000 m the TONGO dyke system
constitutes a huge diamond resource of 18,897,150 carats worth US$3.3 billion.
Small pipes are known along the LANDO dyke zone and could further increase
the resource figure. Assuming a value of at least US$175/carat for the diamonds
in the LANDO kimberlites and allowing for a mining dilution over a 1 m stoping
width, the average value content is US$140/tonne, amongst the highest in the
world. Total operating cost should remain well below US$50/tonne (note: Rex
operates its three fissure mines in South Africa at a cost of less than
US$25/tonne). Rex has built a reputation as the specialist kimberlite fissure
mining company in South Africa. Rex has the know-how to evaluate and develop
the KOIDU LANDO dyke system at Tongo into an important diamond mine.
The Zimmi Mining Lease along the Morro River, at the border with Liberia, has
great potential for alluvial diamonds and kimberlites. The deeper channels, cut
when the sea level was lower, are Rex's prime alluvial diamond target. After a
geophysical survey and bulk testing, these deeper channels may quickly develop
into an alluvial diamond operation."
Dr. Luc Rombouts is a leading authority in worldwide diamond evaluation and
has acted as a consultant to major mining companies, governments, the United
Nations, and the World Bank. He was the evaluator of the NWT diamond
discoveries and is consultant for the major Russian diamond projects.
While the production of gem diamonds has remained stable in the recent years,
there has been a sustained shift in consumer demand towards higher quality and
larger stones resulting in a strengthening of prices in these categories. Only 18
percent of the world diamond production (total est. 111,056,000 carats for 1996)
is of gem quality, but it represents more than 60 percent of its value (total est.
US$6,442 billion for 1996). With an average value of at least US$175/carat, the
Sierra Leone diamond properties underline the REX commitment to be
strategically positioned at the high end of the market. Uniquely integrated REX
combines the production of top quality diamonds in South Africa and soon also in
Sierra Leone, with its own sorting, distribution and marketing organization in
Antwerp.
CEO Serge Muller said: "Tongo Fields alone represents a potential gross profit
of at least US$1.4 billion for Rex."
Key Figures of the Tongo Fields Kimberlite Dykes
Dyke Strike Kimb Mining Depth Volume Tonnage . ..........max.... width..width.....(m)......(m3) ..........(t)
..........(m).....(m)......(m).................................
Lando 6,300 * 0.32 * 1 * 1,000 * 6,300,000 * ....................................................................16,695,000
Kundu 1,800 * 0.30 * 1 * 1,000 * 1,800,000 * 4,770,000
Tongo 1,500 * 0.25 * 1 * 1,000 * 1,500,000 * 3,975,000
Peyima 4,800 * 0.25 * 1 * 1,000 * 4,800,000 * .....................................................................*12,720,000
Total 14,400*.......*....*...............14,400,000 *....................................................................*38,160,000
Dyke... Mining.....Carats.......US$/CT.....US $...
......... grade......................................(million)
.......... (Ct/t)...... (ct)........................
Lando * 0.80 * 13,356,000 * 175 * 2,337
Kundu * 0.42 * 2,003,400 * 175 * 351
Tongo * 0.25 * 993,750 * 175 * 174
Peyima* 0.20 * 2,544,000 * 175 * 445
Total * 0.50 * 18,897,150 * 175 * 3,307
Ps...Rex's leases are still valid..see recent letter from SL government on Rex,s Web site.
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