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Diamond Core -
DIAMOND CORE RESOURCES LIMITED
(Formerly Mazal Mining and Exploration Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1998/013468/06)
Share code: DMR ISIN Number: ZAE000045688
("Diamond Core" or "the Company")
Progress reports, advice of a liquidation application and further cautionary
1. Progress report on the Paardeberg East project and the Skeyfontein joint
venture
Paardeberg East project
After Hopkinton Capital Limited ("Hopkinton") acquired control of the Company on
28 February 2003, Geoventures (Pty) Ltd ("Geoventures") was contracted to act as
the independent geologist to the Company at the Paardeberg East project ("the
property").
The exploration program at the property currently involves drilling at two
locations. Core drilling is in progress for the purpose of quantifying the
volume of kimberlite beneath the existing pit known as P1. Computerised
modelling is currently being conducted and volumes and tonnages determined.
Core drilling and the computerised model should be completed towards the end of
August 2003.
Percussion drilling over the area of the property known as P3 has revealed the
presence of kimberlite over an area 600 meters in length and approximately 30
meters in width. A program of core drilling has commenced to investigate this
occurrence. The first inclined drill hole intercepted kimberlite over a
corrected width of 26 meters. A further 7 holes are scheduled to be drilled
over the P3 occurrence before the end of August 2003.
Geophysical and geological investigations are in progress over target areas P4
and P5 on the property. Thus far 8 drill holes have been drilled at P4 but no
kimberlite intrusion has been found.
Once the drilling program in respect of the property has been completed,
Geoventures shall prepare a report, whereafter the Company will decide whether
bulk sampling is warranted or not.
Insufficient information is as yet to hand to enable Hopkinton to comment on the
possibility of it investing a further R10 million in exchange for 126 million
Diamond Core shares in terms of the option approved by shareholders and issued
to Hopkinton in February 2003 ("the option"). The option is exercisable at any
time within a period of 2 months from the completion of a bankable feasibility
document acceptable to Hopkinton.
Skeyfontein joint venture
On 30 May 2003, the Company entered into a Memorandum of Understanding to
conclude a joint venture with the Skeyfontein Communal Property Association
("CPA") to prospect and, if viable, to embark upon full scale mining on the farm
Skeyfontein.
Agreements have been drafted encapsulating the terms and conditions of the
Memorandum of Understanding and the Company is currently awaiting comments and
input on these agreements from the CPA and its advisors.
The Company hopes to conclude these agreements by mid-August 2003, whereafter a
prospecting permit shall be issued.
2. Impairment of assets
The Board of Diamond Core ("the Board") hereby advises shareholders that,
subsequent to Hopkinton acquiring control of the Company, Hopkinton commissioned
an inspection of its plant and earthmoving equipment ("the equipment"). The
equipment has been found to be materially impaired. It is the Board"s view that
this is a direct result of the manner and fashion in which the equipment was
purchased, constructed, managed and maintained by previous mine management. The
equipment was valued in the Company"s accounts at R13 million and the extent of
the impairment is currently being evaluated by the Board.
3. Progress on the release of the annual report and interim results
The Board has recently appointed advisors to provide input and guidance on
several strategic matters relating to the Company"s future activities and its
capital structure. The current delay in releasing the annual report for the
year ended 30 June 2002 is a result of the Board awaiting clarity on these
matters and agreeing on a route forward. This is expected to be achieved by mid
August at which time both the annual report for the year ended 30 June 2002 and
the interim report for the six months ended 31 December 2002 will be sent to
shareholders. The Company will then apply to the JSE Securities Exchange South
Africa ("JSE") to lift the suspension of trading in Diamond Core"s shares.
4. Liquidation application
Leynys Services Limited ("Leynys") has brought an application ("the liquidation
application") to liquidate Diamond Core Mining & Exploration (Pty) Ltd, a wholly
owned subsidiary of Diamond Core which holds the mineral and surface rights at
Paardeberg East. Leynys claims that in excess of R3 million is owing to it.
The Company has always denied being indebted to Leynys in this amount and is
defending the liquidation application accordingly. Shareholders will be kept
appraised of progress in this matter.
5. Further cautionary announcement
Shareholders are referred to the cautionary announcement published on SENS on 7
May 2003. Although the listing of the Company"s shares on the JSE is currently
suspended, shareholders are advised to take cognisance of all the matters set
out above and to continue to exercise caution when dealing over the counter in
the Company"s shares, or when trading in the Company"s shares when the
suspension is lifted, until a further announcement is made.
Hyde Park
13 August 2003
Corporate adviser
QuestCo Investments (Pty) Limited
Sponsor
Sasfin Corporate Finance
A division of Sasfin Bank Limited
Date: 13/08/2003 02:37:09 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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