DIAMOND PAGE — Nora tests Namibian concession

A marine diamond concession on the western coast of southern Africa has provided a new focus for Nora Exploration (nxi-m), a Montreal-based junior involved in several diamond projects in Africa.

Earlier this summer, Nora acquired a 10% stake in the Namibian Gemstones concession for $552,000. The transaction gave the company the right to obtain an additional 20% stake by funding a geophysical survey of the concession at a a cost of US$1.2 million. Nora also has the option of obtaining an additional 50% holding for US$3.6 million.

Results are now in hand for the geophysical survey, one of the largest continuous surveys ever undertaken on the coast. It was managed by the Council for Geoscience of South Africa.

The concession, too, is one of the largest offshore marine concessions in southern Africa. It consists of 23 deep-water concessions, each of which comprises 1,000 sq. km. The southern portion is adjacent to a set of concessions from which most of De Beers’ offshore production is derived.

The surveying was limited to water depths of less than 500 metres, which involved coverage of just over 41% of the total area. Nora says this work showed that the areas of highest potential are along the eastern side of the concession, which represents about 18.6% of the total concession area.

President Pierre Leveille says the surveys identified apparently extensive, eroded bedrock surfaces “with potential diamond trap sites, such as gullies, bowls and potholes.” He notes that the position of the areas of rock outcrop opposite, and north of, the Orange River mouth is “highly encouraging, as it is in such locations that the largest sizes and highest concentrations of diamonds occur on the coast and in the offshore waters of Namibia.”

Encouraged by the results, Nora’s management intends to recommend that the board proceed with plans to acquire a majority position in the concession.

Nora also holds other projects in Africa, including a 90% stake in the Kade diamond-gold concession in Ghana.

On the financial front, Nora reports that its satellite company, Otjua Minerals, generated revenue of $941,918 from its African diamond operations for the quarter ended May 31, 1998. Otjua posted a net loss of $492,447 for the first nine months of its fiscal year.