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13
December 1999 Work has started on reopening the old Streak of Luck tunnel with a new portal having been established 40 metres into the old tunnel. The new portal will allow the Company's smaller underground loaders and other mechanical mining equipment to enter the tunnel with the object to extend and deepen the tunnel to further explore the area. The tunnel was orginally dug by hand by T Heath from 1957 to 1960 who is reported to have recovered 83 carats of diamonds with diamonds from the area averaging 4 to the carat. The tunnel is dug
in granite and appears to intersect an area of shattered granite with
the diamonds having been recovered from tuffaeous material injected between
the granite blocks. This area is interpreted as being potentially a fracture
zone on the edge of a crater which could have sourced the diamonds in
the area. Material mined from the tunnel is expected to be processed through the Company's Copeton diamond plant on a weekly basis once the tunnel has been mucked out and equipped with necessary safety and other equipment which is expected to take one month. The information
in the report to which this statement is attached relates to Mineral Resources
or Ore Reserves is based on information compiled by Peter John Kennewell,
who is a corporate member of the Australasian Institute of Mining and
Metallurgy. For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655. W Penninger
13
December 1999 The Company is pleased to advise that since the program commenced two weeks ago 90 holes have been drilled during the Company's large diameter calweld drilling program at the Gloucester Ruby Project. The Company is using a 800mm calweld bucket drilling rig to recover wash which will then be processed through a small jig based test plant to recover rubies, sapphires, diamonds and gold which were found to be present in the wash during previous sampling programs. Details of these programs is set out in the 1998 Annual Report. Unfortunately due to drilling conditions no holes have been drilled in the recent alluvials. In drilling at Middle Terrace 43 holes were completed with 28 holes encountering the wash which averaged 1.25 metres thickness. In drilling of Upper Terrace 35 holes were completed with 30 holes encountering wash which averaged 2.5 metres thickness. Three holes drilled in the area of the Company's inferred resource of 4,000,000 carats of ruby (500,000 tonnes at a grade of 8 carats per tonne) although encountering wash could not be properly completed because of heavy water flows and the presence of boulders in the wash which prevent further penetration of the calweld drilling rig. Further exploration in this area will need to be undertaken via a pitting program using an excavator which is already on site. 8 further holes were drilled to test basaltic tuff deposits and basalt flows. Rubies have been reportedly recovered from the vicinity by local farmers although these have not been sighted by the Company. Preliminary processing of the wash recovered during drilling has commenced with some rubies being seen in the jig concentrate. Picking of ruby and sapphire and recovery of diamonds and gold from the jig concentrate will be undertaken off site. The Company's bulk sampling program which will not commence until after the drilling program is completed in the new year is targeting the mining of 80,000 carats of ruby which is expected to involve the mining of approximately 10,000 tonnes of wash and processing the wash at a rate of 100 tonnes per day in an operation expected to take approximately six months with a total cost of $350,000 including the drilling program. The Company is also pleased to advise that it has purchased a large floating processing plant with a nominal capacity of 250 cubic metres per hour which may be suitable for relocation to the ruby project if a decision to proceed with production is made. The information
in the report to which this statement is attached relates to Mineral Resources
or Ore Reserves is based on information compiled by Peter John Kennewell,
who is a corporate member of the Australasian Institute of Mining and
Metallurgy. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant
to the Company. For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655. P Kennewell
13
December 1999 The company has recovered a further 352 diamonds weighing 27.2 carats during the last week from processing of 380 tonnes of material mined from the Monte Christo Diamond mine. During the September quarter 191 carats of diamonds were produced from about 3,500 tonnes. Production costs during this period were $110,000. Diamond bearing material from Monte Christo is trucked to the Company's Jig based processing plant located at Copeton which operates with a lower cut off jig screen of 1.2mm. Diamonds are recovered from Jig concentrates using a grease table. The information
in the report to which this statement is attached relates to Mineral Resources
or Ore Reserves is based on information compiled by Peter John Kennewell,
who is a corporate member of the Australasian Institute of Mining and
Metallurgy. For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655. P Kennewell
13
December 1999 The Company is pleased to advise that the shareholders of the Company have approved the increase in authorised capital of the Company to $200,000,000 and the allotment of 73,724,328 unlisted ordinary shares of 20 cents each paid to 18 cents for a consideration of $100,000. For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655. W Penninger
23
November 1999 The Company has today signed a formal deed of agreement with Television Corporation of Australia Pty Ltd and Cairnton Pty Ltd, related bodies corporate of Consolidated Press Holdings Limited (CPH) relating to the participation of CPH in the Gloucester Ruby Project. As previously announced the agreement allows the Company to proceed with a bulk sampling program on the ruby deposit which is aimed at producing approximately 80,000 carats of ruby. The Company also plans to commence a drilling program in November which will have the objective of extending the existing inferred resource of 4 million carats of ruby. Mobilisation of plant to site is already underway and drilling is expected to commence later this week. The agreement also provides: 1. that for a consideration of $200,000 the Company grants CPH an option to acquire 51% of the Gloucester Ruby Project for the payment of $5M and 2. subject to shareholder approval (replacing the previous option over 15% of the Company's ordinary shares) the issue on 14 December 1999 of 73,724,328 unlisted 18 cent paid ordinary shares for a consideration of $100,000 (the 2 cents remaining to be paid before the shares can be listed represents a substantial premium on the then last trade prior to the announcement). The call on the shares is due to be made at the latest within 3 months of the conclusion of the bulk sampling and trial marketing program and upon payment of the call amount, the Company will seek listing of the shares. A meeting of the Company has been called for the 13 December 1999 to approve the issue of shares to Television Corporation of Australia Pty Ltd. For further information call Walter Penninger or Peter Kennewell on (02) 94824655. W Penninger 10
November 1999 Many of you will I am sure be aware that we announced on 5 October that we entered into an agreement with companies controlled by Consolidated Press Holdings Limited (CPH) to undertake a bulk sampling program for rubies on a pastoral property owned by the group. At the time before this agreement was announced the shares in the company were trading at 1.2-1.4 cents and have subsequently traded as high as 13.0 cents. The agreement also for a consideration of $200,000 grants CPH an option to acquire 51% of the Gloucester Ruby Project for the payment of $5M and subject to shareholder approval did grant a second option over 15% of the ordinary shares in the Company at 2 cents a share for a consideration of $100,000 (the 2 cents remaining to be paid before the shares can be listed represents a substantial premium on the then last trade prior to the announcement). It has now been agreed that in lieu of this second option the Company will subject to shareholder approval proceed with an immediate issue of 73,724,328 unlisted 18 cent paid ordinary shares (15% of the ordinary shares on issue after the rights issue is fully subscribed). The call on these unlisted shares is due to be made at the latest within 3 months of the conclusion of the bulk sampling and trial marketing program and upon payment of the call amount, the Company will seek listing of the shares. Funds raised from the issue and the call will be used for working capital. EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS To allow the issue of ordinary shares to proceed an extraordinary general meeting of shareholders has been called for Monday 13 December 1999 and notice of this meeting is printed on the reverse of this letter. The directors strongly support the agreement with CPH which has seen a dramatic increase in the price of the Company's securities and recommend that all shareholders vote in support of all resolutions. RIGHTS ISSUE OF SHARES AND OPTIONS Enclosed with this letter are your entitlement and acceptance form and prospectus relating to the 1 for 6 rights issue to shareholders of one listed fully paid 20 cent ordinary share (CFR) and one 2001 option (CRFOB) at a price of 4 cents per 20 cent paid share with the attaching option being free. This issue is not underwritten at the present time but the directors expect to secure underwriting for the issue shortly and commend the issue to shareholders. Please read the entitlement and acceptance form and the prospectus carefully. If you have any questions you should seek the advice of your professional adviser or call the Company on (02) 9482 4655. You should note that the issue unless extended closes on 30 November 1999. OFFER OF ROUGH DIAMONDS FOR SALE TO SHAREHOLDERS. The Company has previously offered its shareholders the opportunity to purchase selected specimens of uncut Copeton and Bingara diamonds at an introductory price available exclusively to shareholders, and we are happy to now repeat this offer. Copeton and Bingara diamonds are at this stage among the rarest and most unique diamonds in the world and have a high lustre which has resulted in selected specimens being commonly set uncut. Prices range from single 5 point selected specimen gem quality uncut stones in display cases at $50 to 50 point stones at $650. Bulk uncut gem quality stones are also available ranging from $290-$490 per carat. Prices include packaging and delivery in Australia. Details are set out on the attached order form and as stocks of particular items are limited sales will be on a first come first served basis. Term and application form are enclosed. W Penninger NOTICE OF EXTRAORDINARY GENERAL MEETING Notice is hereby given that an Extraordinary General Meeting of the shareholders of Cluff Resources Pacific NL will be held on the First Floor, Sydney Vista Hotel, 7-9 York Street, Sydney on Monday 13 December, 1999 at 11.00am.
5
November 1999 The Company has recovered a further 181 diamonds weighing 22.8 carats from processing of 320 tonnes of material mined from the Monte Christo Diamond mine. This brings recoveries to 213.8 carats since the Company's new plant was commissioned in late August. The area being mined at the Monte Christo mine continues to dip down towards the west. Heavy rain once again disrupted mining operations during the last week thereby reducing throughput of the plant. W Penninger
21
October 1999 Name of Entity: Cluff Resources Pacific NL ACN or ARBN: 002 261 565 We (the entity) give ASX the following information: PART 1 - ALL ISSUES
PART 2 - ISSUE TO A CLASS OF SECURITY HOLDERS If the issue is a placement, this part does not need to be completed
W. Penninger
20
October 1999 The Company has recovered a further 171 gem quality diamonds weighing 26-33 carats today from processing of 450 tonnes of material mined from the Monte Christo Diamond mine.This brings recoveries to 170 carats since the Company's new plant was commissioned in late August. The area being mined at the Monte Christo mine continues to dip down towards the north-west. The largest diamond recovered was a 0.95 carat white diamond and a small amount of gold was also recovered. W Penninger
11
October 1999 The Company has recovered a further 163 gem quality diamonds weighing 27.5 carats today from processing of 240 tonnes of material mined from the Monte Christo Diamond mine. This brings recoveries to 144 carats since the Company's new plant was commissioned in late August. The area being mined at the Monte Christo mine continues to dip down towards the west and the grade of this sample has increased from 4-5 carats per 100 tonnes to 11.5 carats per 100 tonnes. The Company is also in the process of commissioning a crusher which is to be used on oversize material from the Monte Christo mine which has previously not been successfully treated. Ironstone material within the oversize material is being targeted as it has been reported historically as being diamond bearing and has not been previously tested by the Company. W Penninger
The company has recovered a further 180 gem quality diamonds weighing 25.8 carats during the last week from processing of 560 tonnes of material mined from the Monte Christo Diamond mine at Bingara in northern NSW. This brings recoveries to 116.5 carats since the Company's new plant was commissioned in late August. Walter Penninger
5
October 1999 The Company is pleased to advise that it has reched agreement with Consolidated Press Holdings Limited ('CPH') to proceed with a large bulk sampling program of ruby bearing alluvials located on a pastoral property owned by a company in the CPH group west of Gloucester in NSW. As part of the agreement CPH will receive a royalty of 10% of the Rubies produced during the bulk sampling program and for an option fee of $100,000 will be granted an option to acquire 15% of the issued ordinary shares of the Company at 2 cents per share and for an option fee of $200,000 will be granted an option to acquire a 51% interest in the Gloucester Ruby Project and associated tenements at a cost of $5,000,000. The bulk sampling program which is expected to start in November is aimed at further evaluating the inferred resource of 4,000,000 carats of rubies located at the Gummi alluvials area with the potential to considerably extend the alluvial resource and uncover the primary source of the rubies. It is expected that 80,000 carats of Ruby will be mined during thr bulk sampling program which will be then available for trial marketing and determination of the average value of the rubies. Although occasional rubies are found with sapphires in a number of areas in Eastern Australia, the Gloucester area is the only major source of facet quality ruby in Australia and one of a few in the world. Rubies mined during previous bulk sampling of the area range in colour from red to pink with the largest stone recovered being 5 carats. Selected stones have been cut in Australia and Thailand and have strong fire with retail values ranging from $100 to $1500 per carat cut. Some facet quality sappires and one diamond were also recovered during previous bulk sampling. The agreement is subject to due diligence on the title to the Ruby tenements and the final approval of CPH and the option to acquire 15% of the ordinary shares in the Company is subject to the approval of shareholders of the Company. For further information please contact Walter Penninger on (02) 9482 4655 or 0409 452 057 Walter Penninger
The company has recovered a further 244 gem quality diamonds weighing 34.2 carats during the last week from processing of material mined from the Monte Christo Diamond mine. This brings recoveries to 90.7 carats since the Company's new plant was commissioned in late August. W Penninger
Processing of material mined from Cluff's 100% owned Monte Christo Diamond mine has resulted in the recovery of a further 33.5 carats of gem quality diamonds during the past two weeks. This brings total diamond recoveries to 56.5 carats since the Company's new plant was commissioned in late August. Mining is proceeding into the old "Jeweller's Shop" area of the mine, where high grades were reported during mining in the 1890's. The area mined is continuing to dip into the Jeweller's Shop and the Company is focusing upon any potential basement features in this area from which the diamonds may have been sourced. With the Company now having gained 100% ownership of the exploration licence over the surrounding Bingara Diamond Field, attention will also now be focused on an extended bulk sampling program over this exploration licence. W Penninger
The Company is pleased to advise that it has acquired Diamond Ventures NL 51% interest in the Bingara Diamond Field covered by EL3325 in northern NSW. This will give Cluff Resources Pacific NL a 100% interest in the Bingara Diamond Field subject to a 10% net profits interest (reducing to 5% after cost recovery) retained by Diamond Ventures NL. Regional areomagnetic work undertaken by the NSW Department of Mineral Resources as part of its Discovery 2000 Program over the Bingara Diamond Field and areas to the west held by Rimfire Mining NL has outlined a number of anomalies. The Discovery 2000 data is currently being analysed by Cluff with a view to highlighting exploration targets within EL3325. W Penninger
The Company is pleased to advise that construction and commissioning of the Company's new dry screening plant located at the Monte Christo diamond mine and the upgrading of the Copeton diamond recovery plant have been completed. Open cut mining at the Monte Christo mine is now progressing into the area known as the "Jewellers Shop" with the aim to expose any basement features from which the diamonds may be sourced. The material mined is then dry screened and trucked to the Copeton plant with final recovery of the diamonds from concentrate occurring at the Company's Inverell office. During commissioning 136 diamonds weighing 22.2 carats were recovered with the largest diamond weighing 58 points. A small amount of gold was also recovered during processing. The old Monte Christo mine was the most productive diamond mine at Bingara having been first worked by "Captain Rogers" in 1882 and worked intermittently until 1932 during the Depression. Reported production from the mine was about 18,000 carats with reported grades usually about 0.5-2 carats per tonne. However some extremely high yields (upgraded by selective mining and prescreening underground) were reported from an area mined by "Captain Rogers" called the "Jewellers Shop": "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 36 kg 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." (Page 71, "Diamonds in NSW" by A A MacNevin published by the Geological Survey of NSW).. W Penninger
The Company is pleased to advise that it has received valuations on rubies and sapphires cut from the rough stones recovered during bulk sampling at the Gloucester Ruby Project. The facet grade rough stones were cut in Inverell NSW with cutting recoveries being approximately 30% of the rough stone. Bulk sampling during 1998 outlined an inferred resource of 4,000,000 carats of ruby, 500,000 tonnes at 8 carats of ruby per tonne. Valuations for ruby from 15 points to a maximum cut size of 1 carat are:
In addition to ruby the deposit also contains large quantities of sapphire. Valuations for sapphire from 20 points to a maximum cut size of 44 points are:
The Company is extremely pleased with the results of cutting which is a further step towards establishing the commerciality of the deposit. Negotiations are continuing with the landowner of the deposit, Cairnton Pty Ltd a company controlled by Mr Kerry Packer, as to possible joint development of the inferred ruby resource. W Penninger
The Company is pleased
to advise that it has registered the Internet domain names Company Director Scott Enderby, a web site designer, has been commissioned to construct the web sites, with the initial focus of the sites being the marketing of diamonds, rubies and sapphires produced from the Company's existing diamond, ruby and sapphire resources. The Web sites will allow users to view close up digital images of gems and jewellery which can be purchased directly from the site or from the Company via fax or telephone. Australia is
a large producer of gemstones, particularly diamonds, sapphires and opals
but much of this production is sold as rough uncut gemstone at a small
fraction (often less than 10%) of the ultimate retail price. The Company's
aim is to utilise the Internet as a vehicle for direct marketing of Australian
Gemstones mined by Cluff and other Australian companies. Selected quality
rough gemstones will be offered on a wholesale basis. Individual cut and
polished gemstones and exclusively designed jewellery, including those
produced by Cluff, will also be offered on a retail basis but at substantially
reduced prices compared to normal retail stores. To date Cluff has produced about 700 carats of gem quality uncut diamonds, and has reported an inferred resource containing half a million carats. Access to this resource was commenced last year. Cluff has produced several thousand carats of gem quality ruby, and has outlined an inferred resource of 4,000,000 carats of gem quality ruby at our Gloucester Ruby Project. The deposit is potentially much larger than this, and the company is currently in discussions with the landowner, Cairnton Pty Ltd, a company controlled by Mr Kerry Packer, as to possible joint development of the Inferred Resource. This area contains one of the few resources of quality facet grade ruby in the world. Australia is the largest producer of sapphire in the world, and Cluff is having discussions with a number of Australian sapphire producers to enter into joint ventures to obtain long term supplies. To source stones and jewellery for Internet sales, the Company will expand its present program of value adding, which at present comprises cutting of parcels of both diamonds and rubies to more closely determine the profits to be made from upgrading the stones. Design and manufacture of sample jewellery is also currently underway in Australia. It is planned to raise the working capital necessary for the development of the Web sites and for the value adding program through a private placement of shares. W Penninger |