SouthernEra buying into diamond mine

As predicted at its annual meeting in June, SouthernEra Resources (TSE) has completed negotiations to acquire an interest in an intermittent diamond producer in South Africa.

Along with partners Dryden Resource (VSE) and Stow Resources (VSE), SouthernEra can earn an 80% interest in the Leicester diamond mine near Kimberley, South Africa, by spending $8 million.

The open pit operation consists of at least two diamond-bearing pipes that have yielded 32,000 carats from 673,000 tons of material. About 50% of the recovered stones have been of gem quality and more than 10% have been greater than 10 carats in size.

“It’s never been a high-grade producer,” says SouthernEra President Christopher Jennings. “It just has nice gems.”

The value of stones sold from production in 1989 and 1990 is reported to have been $1.2 million, or an average of $507.48 per carat.

Also working in Southern Africa, Canadian Overseas Exploration (VSE) says it has negotiated the purchase of a majority interest in the pros- pecting rights and technical data of a second diamond concession on the Namibian coast.

Meanwhile, the diamond hunt continues at a feverish pace in Canada. The following transactions were completed recently:

— Westview Resources (VSE) was granted a 100% interest, subject to a 5% gross revenue royalty on diamond production, in any diamond discovery made on Cominco’s (TSE) Ren property in the Northwest Territories.

To settle outstanding option payments on the property, Westview will pay Cominco $40,000 by Sept. 30 and a further $40,000 by Sept. 30, 1993. Westview will retain a 40% interest in the non-diamond assets.

The 10,000-acre Ren property lies about 95 miles northwest of the BHP Minerals Canada-Dia Met diamond discovery. Several unexplained circular magnetic anomalies, typical of kimberlite, have been outlined at the junction of two major structural features.

— Takla Star Resources (ASE) filed applications for

additional mineral permits in Alberta to increase its application area to 2.4 million acres extending northeast from

Edmonton, Alta.

— To expand their landholdings in the James Bay lowlands area of northern Ontario, partners KWG Resources (ME) and Blue Falcon Mines agreed to earn a 51% interest in 16 claims owned by Continental Precious Minerals (ME) and Texas Star Resources (VSE). The claims contain one confirmed diatreme. The juniors will also have access to 17 targets identified in Ontario and Manitoba by BP Resources during a $10-million diamond exploration program in the lowlands.