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Trans Hex Group Limited - Trans Hex And Mvelaphanda Join With Etruscan Diamonds
Release Date: 12/05/2004 08:49:19 Code(s): TSX
TRANS HEX GROUP LIMITED - TRANS HEX AND MVELAPHANDA JOIN WITH ETRUSCAN DIAMONDS
TO EXPAND TIRISANO
Trans Hex Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1963/007579/06)
JSE code: TSX
ISIN: ZAE000018552
("Trans Hex")
JOINT RELEASE: TRANS HEX GROUP AND MVELAPHANDA RESOURCES
TRANS HEX AND MVELAPHANDA JOIN
WITH ETRUSCAN DIAMONDS TO EXPAND TIRISANO
Mvelaphanda Exploration (Pty) Ltd ("Mvela Exploration") jointly owned by Trans
Hex and Mvelaphanda Resources concluded an agreement with Etruscan Diamonds
(Pty) Ltd ("Etruscan") to fund a capital expansion of the Tirisano Diamond Mine
("Tirisano") on the Nooitgedacht 131 IP property near Ventersdorp ("the mine and
property")
Mvela Exploration has until 31 July 2005 ("the option period") to earn a 50%
interest in the mine and property by funding and carrying out an expansion of
the current plant at Tirisano to achieve a design capacity of 300 metric tons
per hour throughput. The estimated cost of the expansion to Mvela Exploration is
approximately R41 million
All production will be sold through Trans Hex"s existing tender system with a
marketing fee payable to Trans Hex
Mvela Exploration will fund Tirisano"s working capital requirements during the
option period. Operating costs will be reimbursed from diamond sale revenue
Upon successful completion of the earn-in Mvela Exploration and Etruscan will
enter into a 50/50 joint venture arrangement in respect of the mine and property
Mvela Exploration will act as operator of the joint venture
Tirisano is expected to have a life of mine in excess of ten years
THE DEVELOPMENT OF THE BLUE GUM DEPOSIT
Mvela Exploration will focus on development of the Hartbeestlaagte 146 IP and
Zwartrand 145 IP properties following successful completion of the expansion at
Tirisano, beginning with the Blue Gum diamond deposit located about 3 kilometers
south of Tirisano ("development of the Blue Gum deposit")
During the option period Mvela Exploration will fund and carry out a bulk
sampling programme and a feasibility study, including a valuation of the
Hartbeestlaagte and Zwartrand properties
Upon successful completion of the expansion at Tirisano, the bulk sampling
programme and the feasibility study, Mvela Exploration will earn a 50% interest
in Hartbeestlaagte and Zwartrand by making capital expenditures on the
properties estimated at R190 million (based on available data at a grade of 2.8
carats per 100 cubic metres). Expenditures will include the construction of a
plant on these properties with an anticipated design capacity of 600 metric tons
Upon completion of the earn-in on the Hartbeestlaagte and Zwartrand properties,
Mvela Exploration and Etruscan will enter into a 50/50 joint venture agreement
Mvela Exploration will act as operator of the joint venture
The agreement is subject to all required regulatory approvals
MOGOPA COMMUNITY
Mvela Exploration looks forward to working with the Mogopa community and using
this opportunity to promote broad-based black economic empowerment in the region
Altie Krige, Mvela Exploration director commented:
"We believe this is an excellent opportunity to expand our resource and reserve
base within our core competency in alluvial diamond mining. We are encouraged by
initial estimates of reserves at Tirisano and resources at Blue Gum and look
forward to accomplishing a successful earn-in at both these projects."
Gerald McConnell, President and CEO of Etruscan commented:
"This partnership represents an exciting strategic alliance for Etruscan
Diamonds and will fast track the expansion of the Tirisano Diamond Mine and the
development of the Blue Gum Diamond deposit."
12 May 2004
Enquiries:
Mvela Exploration +27 21 937 2022
Altie Krige
Etruscan +1 902 798 9701
Richard Gordon, Investor
Relations
College Hill +27 11 447 3030
Johannes van Niekerk +27 82 921 9110
Sam Denoon-Stevens +27 83 450 7654
Sponsor to Transhex
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
CORPORATE FINANCE
Sponsor to Mvelaphanda
PricewaterhouseCoopers Corporate Finance (Pty) Limited
Notes to editors
Mvelaphanda Exploration
Mvelaphanda Exploration (Pty) Limited was established in April 2001. The Company
participates in diamond exploration activities and is able to provide the 50%
BEE interest as required by government for exploration and greenfields work in
South Africa. Mvelaphanda Resources Limited and Trans Hex Group Limited each own
50% of the company. Trans Hex acts as the joint venture operator.
Trans Hex
Trans Hex Group Limited is a world leader in the exploration, mining and
marketing of high quality alluvial diamonds from both land and sea operations.
Trans Hex operates mines alongside the mid and lower Orange Rivers and off the
South African and Namibian coasts with annual production in excess of 200,000
carats making it the second largest diamond producer in South Africa. Trans Hex
Group Limited is listed on the Johannesburg Stock Exchange and the Namibian
Stock Exchange. More extensive information on its operations can be found on its
website at www.transhex.co.za.
Mvelaphanda Resources
Mvelaphanda Resources Limited, a JSE listed company, is a broadly based black
empowerment company with significant holdings in South African precious metal,
diamond and mineral assets through holdings in Trans Hex, Northam Platinum
Limited and most recently Gold Fields Limited. The Gold Fields investment, for
a 15% equity ownership in the world"s fourth largest gold producer, was
concluded at a cost of R4.1 billion. More extensive information on Mvelaphanda
Resources can be found on its website at www.mvelaphandaresources.co.za.
Etruscan
Etruscan Resources Inc. is a diversified Canadian junior mining company that is
focused on the exploration and development of diamond properties in South Africa
and gold properties in West Africa. The common shares of Etruscan are traded on
the TSX under the symbol "EET". The common shares of Mountain Lake are traded
on the TSX Venture Exchange under the symbol "MOA". More extensive information
on Etruscan and Mountain Lake can be found on the respective websites at
http://www.etruscan.com and http://www.mountain-lake.com.
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