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Trans Hex secures world class alluvial assets in Angola
Trans Hex Group Limited
(Cape Town, 25th September 2002)
JSE-listed Trans Hex Group has secured two of the most sought-after
alluvial diamond concessions with already delineated reserves exceeding
1 700 000 carats as the starting point for its mining venture into
Angola.
The joint venture with the Angolan State Diamond Organisation (Endiama),
to mine in the diamond-rich Lunda Norte province, secures two
concessions which will yield more than 400 000 carats annually for the
partners at an expected market price in excess of US$250 per carat.
Trans Hex chief executive officer Calvyn Gardner said : "Many companies
have been chasing these assets, in particular the Luarica Concession.
It is widely regarded as one of, if not, the best alluvial diamond
concession in the world."
"And while the stone size at the second concession - Fucauma - is
slightly smaller, the grade is exceptional which identifies it as a
truly A Class deposit," added Gardner.
The Luarica Concession, 480km} in size and situated 40 kilometres
northeast of Lucapa, is an already well-established mining area.
Results from earlier exploration on a fraction of the alluvial deposit
revealed a reserve of more than 800 000 carats. Diamond production is
scheduled to begin during the first quarter of 2003.
The second area, known as the Fucauma Concession, is more than 1 440km}
and is located 100 kilometres further north. A short sampling
programme, intended to confirm the already identified 900 000 carat
reserve, will be the precursor to full-scale mining scheduled for early
2003.
"Both projects are ideal for start-up operations as they allow for
almost immediate cash flow generation," said Gardner. "A number of
project options had been reviewed but these two were selected because
they met our strict investment criteria which included a low risk
profile and short commissioning period."
Cash for the new venture will be funded from Trans Hex`s own resources
and together with Endiama the two partners will take-up the majority
stake, with the remaining portion held by shareholders from the local
community.
"We are very excited with our entry into Angola," said Gardner. "This
is the first time that Trans Hex will have access to alluvial diamond
deposits of this calibre. We have established an office and logistics
company in Luanda over the last eight months and planning for both
projects is well advanced."
"Trans Hex is well-known in the industry as an expert alluvial mining
company with the ability to make money from marginal deposits," said
Gardner. "We are looking forward to operating these A-class assets and
developing them to their full potential."
Tokyo Sexwale, Trans Hex chairman, said : "The recent return to peace
and the long-term relationship that Mvelaphanda has fostered with the
Angolan Government has facilitated this new partnership. Trans Hex and
Mvelaphanda`s reputation as producers of high-value conflict-free
diamonds will assist in promoting the Angolan diamond industry as a
leader in the responsible and sustainable marketing of diamonds."
"Mining is one of the cornerstones for the renewal of Africa through the
New Partnership for Africa`s Development (NEPAD) initiative championed
by South African President Thabo Mbeki," concluded Sexwale. "The start
of these two projects in Angola is tangible evidence of the benefits
NEPAD can bring to the region."
Ends.
For further information : Calvyn Gardner
Trans Hex Group Tel: 021 937 2000 / 082 444 3370
Issued by : Cullum Johnston
BHA Communications
Tel: 021 683 2685 / 083 212 2455
Date: 25/09/2002 02:55:15 PM Produced by the JSE SENS Department
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