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Gold/Mining/Energy : southern africa minerals -- Ignore unavailable to you. Want to Upgrade?

To: Neil Thomas who wrote (290)	5/26/1999 10:39:00 PM
From: chomsky	Read Replies (1) \| Respond to of 314

Southern Africa Minerals Corporation - Increased Tonnes At Caber TORONTO, ONTARIO--The company is pleased to report a substantial increase in tonnage of the Caber zinc/copper deposit, located 35 km to the west of the Matagami mining camp in Quebec. The previously reported tonnage was 413,000 tonnes. Separate tonnage and grade figures have been calculated by Noranda Inc. and by Roscoe Postle Associates as an independent report for Southern Africa Minerals. /T/ RPA Resource Estimate: NSR Lens Tonnes percent percent g/t g/t ($/ Category Zn Cu Ag Au tonne) --------------------------------------------------------------- All lenses 515,000 11.0 0.5 11.1 0.14 84.35 indicated All lenses 285,000 8.5 0.8 11.6 0.14 71.22 inferred Total 800,000 10.1 0.6 11.3 0.14 79.67 /T/ RPA's estimate was done with the Contour Method for each individual metal and for each separate lens. A cut-off grade of 5 percent equivalent zinc and a minimum 4.5 meter horizontal width were used. The basic assumptions used to calculate the Net Smelter Return (NSR), in Canadian Dollars, were the same for Noranda and RPA including the following: US$ 0.60/lb for zinc, US$ 1.00/lb for copper, US$ 5.50/oz for silver, US 325.00/oz for gold, an exchange rate of $ 1.30 and metal recoveries of 90.0 percent and 84.5 percent for zinc and copper, respectively. /T/ Noranda Inc. Resource Estimate: Lens Tonnes percent percent g/t g/t ($/ Category Zn Cu Ag Au tonne) --------------------------------------------------------------- All lenses 484,000 11.7 1.0 14.4 0.23 96.38 indicated Additional Zinc Resource 31,000 10.8 0.4 6.8 0.09 80.51 inferred Additional Copper Resource 41,700 1.3 2.6 7.4 0.21 50.67 inferred /T/ Noranda's resource estimate was calculated using the cross sectional method, a cut-off NSR of $40/tonne and a true mining width of 4.5 meters. The copper resource, however, includes narrow intersections that are below the minimum 4.5m true width. In their report RPA states: "Results of our audit and preliminary resource estimate indicate that Noranda's resource estimate of the Caber deposit at the higher cut-off is reasonable and acceptable relative to standard industry practice." A feasibility study of the Caber deposit by Noranda is nearing completion. The study will investigate the viability of mining the Caber deposit via a ramp and processing the ore at Noranda's Matagami mill. The company believes that the above revised resource estimates will have a positive impact on the feasibility study. RPA also reported that the wide area of sulfide mineralization at Caber north, along a strike length of more than 1,200 meters, has the potential to host a significant massive sulfide deposit and that additional drilling is warranted in the area. Three drills are active on the property. Noranda Inc. can earn up to a 70 percent interest in the property by bringing the property to production; by incurring $6.0 million in work expenditures and making $2.85 million in private placements in the company over a four-year period. THE PRESS RELEASE WAS PREPARED BY SOUTHERN AFRICA MINERALS CORPORATION WHICH ACCEPTS THE RESPONSIBILITY AS TO ITS ACCURACY. NO STOCK EXCHANGE OR ANY REGULATORY AUTHORITIES OR SIMILAR BODY, HAVE APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Southern Africa Minerals Corporation Denis Francoeur President and C.E.O. (416) 365-0250 www.southernafrica.net