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2 October
1998 The Company advises
that work on the Star Tunnel into Mount Ross, which had reached a length
of 80 metres, has been suspended due to flooding by water entering the
tunnel through old diamond mines intersected during tunneling which connect
it to the waters of the Copeton Dam. The dam is now at 100% of its capacity
due to heavy rains in the district since the end of last year. When the
dam has dropped to 85% of its capacity, the tunnel will be pumped out
and tunneling resumed, assuming no damage has been suffered by the flooding.
Possible sites for sinking of the 90 metre shaft necessary to give a second
means of access to the 500,000 carat diamond inferred resource beneath
Mount Ross are being reviewed. For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655 Walter
Penninger
The Company wishes
to advise that it is proceeding with trial open cut mining at the Monte
Christo Diamond Mine. “In 1892, 20 loads of wash (approximately 20 tonne) were treated for a return of 2,250 diamonds weighing 450 carats (mostly from the “Jewellers Shop”), and in 1893 one washing of 36kg of wash yielded 10.25 carats, and treatment of material from the drives, totalling 12 loads of dirt (6 from the upper level and 6 from the lower level), yielded 350 carats.” Bulk sampling in recent years over the area to be trial mined at Monte Christo has recovered grades ranging from 8.5 to 4.5 carats of diamonds per 100 tonne over 5 metre thichkness which can be mined by open cut. The Compnay is curenly in the process of relocating its open cut mining equipment and its newly contructed diamond pan from Copeton to the Monte Christo Mine. Underground operations and processing are continuing at the Copeton Diamond Project. Trial mining at Monte Christo, which is expected to commence next week, will start in the area previously bulk sampled but will be aimed at uncovering the source of the higher grades reportedly mined in the 1890’s. Production is expected
to start by the end of September using a trommel and newly constructed
diamond pan with daimonds being recovered over a grease table. Gold, sapphires
and other heavy minerals will be recovered via jigs and sluices.
The Gummi River, 200 km north of Sydney, flows along ruby-bearing alluvial flats about 200 metres wide, for more than five kilometres. The central parts of these flats comprise only one tenth of the area of the flats, and were evaluated in 1973 by Audimco Pty Ltd as a sample of the whole alluvial gravel deposit. Twenty-one pits had been dug to basement in this central part of the deposit, using a Poclain clam grab excavator, digging pits approximately 0.8 metres in diameter and 80 metres apart. An additional eight pits had been dug in more distal parts of the flats to determine whether rubies were present in all of the alluvial gravels. A trench was dug, apparently to obtain a bulk sample, and the rubies recovered from the program were sorted into three classifications. No sizings were recorded. Cluff’s recent trenching program confirmed the grades obtained by the Audimco program within the variability expected in an alluvial deposit, and allowed determination of the quality of their ruby classifications. Tonneages of the gravels present were calculated using a polygonal method, over the small area evaluated by the previous pitting program. The lowever screen size used in the processing by both Audimco and Cluff was 1.5mm. The central part of the ruby deposit contains an Inferred Mineral Resource of 500,00 tonnes of ruby bearing gravels, with an average grade of 8 carats per tonne of ruby. Of these rubies, about 25% are red, transparent, and of good quality. The largest stone recovered in this classification was three carats in weight and cut to a 0.76 carat brilliant valued at $400 to $600 per carat wholesale. Average stones in this category are much smaller, and hence of lesser value, but are of similar quality. 50% pink, transpoarent , and of good quality, 25% are red or pink and slightly “siliky”, suitable for cabachon preperation, and possibly ameneable to heat treatment. The larger rubies make up approximately 50% of the sample, and average half a carat in weight uncut. The smaller rubies average 0.2 carats uncut. Comprehensive valuation of the stones has not been completed, and is expected to take some time. The
following statements apply in respect of information in this report that
relates to Identified Mineral resources and Exploration Results:
For further information please contact Peter Kennewell or Walter Penninger on (02) 9487 4655. P.Kennewell
The Company is pleased to advise the recovery of a further 1,140 carats of Ruby, 175 carats of blue sapphire and 270 carats of green sapphire from approximately 172 tonnes of alluvial material excavated from part of trench 1 at its Gloucester Ruby Project during the last week. This brings the total amount of gems recovered from trench 1 to 1,465 carats of rubies, 265 carats of blue sapphire and 355 carats of green sapphire. The results of the alluvial sampling to date are regarded as encouraging and the Company is pleased with the quality of the rubies recovered to date. The Rubies are predominantly transparent gem stones, ranging in colour from red through pink to champagne with the largest transparent red ruby weighing 3 carats. Approximately half the rubies by weight average half a carat per stone. The blue sappire consists of both transparent and opaque stones ranging in colour from light to dark blue, with the largest stone recovered being a 3.3 carat dark blue opaque stone. The green sapphire consists of both transparent and opaque stones ranging in colour from light to olive green with the largest stone recovered being a 1.9 carat olive green opaque stone. The area being currently bulk sampled is one of over ten areas identified by the Company as being a potential source of rubies in the area which the Company believes has the potential to host a major ruby resource. P.Kennewell
The Company is pleased to advise that bulk sampling operations have commenced at the Company’s Gloucester Ruby Project. Despite bad weather conditions during the last week, the Company has established its camp and assembled its trommel and jig test plant which is powered by a 100KVA generator. During commissioning trials approximately 14 tonnes of alluvial (based upon a density of 1.8t/cubic metre) was excated by backhoe from part of the first bulk sampling trench and has been processed by the Company’s plant with the recovery of 59 carats of Ruby. In addition 12 carats of green sapphire were recovered. No serious problems were encountered during commissioning of the plant, however as the alluvial wah is coarser than expected, a number of minor modifications are planned during the course of the next week to improve throughput. It is envisaged that the bulk testing program at the deposit will be completed within 6 weeks. Walter
Penninger
The Company is pleased to advise the recovery of a further 82 diamonds weighing 16 .47 carats from its Wonderland Diamond mining lease since the recommencement of mining operations in March 1998. The diamonds were recovered from the treatment of approximately 800 tonnes of material by the Company’s Copeton Diamond Plant. Walter
Penninger
The Company is pleased to advise that work has commenced yesterday on the Star tunnel at the Copeton Diamond Project. The
16 metre portal for the tunnel was commenced in December 1997. At the
base of the portal the Company intersected a sheet like diamond bearing
horizon which is on average approximately 2 metres thick. The Star tunnel
is being driven from the base of this portal 250 metres to the south east
to access an Inferred Resource of 500,000 carats of diamonds at an inferred
grade of 50 carats per hundred tonnes. Walter
Penninger
13th January
1998 The Company is pleased to announce that its new open cut workings, commenced in December, north of the old Star of the South Diamond Mine ant Mount Ross near Inverell in Northern NSW, have encountered what appears to be an unworked extension of the old Star of the South mine. Based upon Mines Department records, the Star of the South Mine was the largest and perhaps the most productive on the Copeton Diamond Field. The old Star of the South Mine was last worked in 1904. The diamonds were found unevenly distributed through the horizon mined, with the grade reported as ranging from 1-10 carats PER TONNE. The diamonds were good quality, averaging between 3 and 4 per carat, but numerous 1 carat and several 3 carat stones were obtained. The new open cut intersected a diamond bearing horizon at a depth of 10 metres and the diamond bearing horizon is approximately 3 metres thick, ranging from sand at the top to a half-to-one metre poorly sorted (but mainly coarse) sequence of clays, sands, gravels, cobbles and small boulders at the base, which is believed to carry the majority of the diamonds. Underlying the diamond bearing horizon is a granitic tuff which has yet to be excavated but may also be prospective for diamonds and could be an ultimate source rock for diamonds at the Copeton Diamond field. To date approximately 210 tonnes of the material has been processed through the Company’s Copeton Diamond plant, with the recovery yesterday of 56 gem quality diamonds weighing 23.2 carats. The largest diamonds recovered were a 1.91 carat yellow gem quality stone and 1.45 carat white octahedra with a further 19 stones weighing over a half carat each. All stones recovered were gem quality, with the average size of the stones recovered being 0.41 carats and recoveries being the equivalent of 11 carats per hundred tonnes. The Company is extremely encouraged by these initial results from the new Star of the South open cut and plans to process further material from the diamond bearing horizon in the next week. The underlying granitic tuff will also be bulk sampled to determine its extent and the nature of any underlying material, and will be processed in order to determine its potential to carry diamonds. Walter
Penninger |