SouthernEra recovers diamonds from Sue pipe

SouthernEra Resources‘ (SUF-T) first hole into the Sue kimberlite pipe on the Yamba Lake property in the Northwest Territories has surrendered 95 diamonds.

The haul includes 18 macrodiamonds (a macro is here defined as exceeding 0.5 mm in at least one direction). Eleven of the macros run more than 0.5 mm in 2 dimensions. The largest stone measures 1.44 by 1.10 by 1.04 mm. Most of the stones are white.

The hole also returned 30 micros (using a 0.15 millimetre mesh bottom screen). Using a 0.106 millimetre mesh bottom screen the number of micros grows to 77.

In all, the angled hole cut 172 metres of kimberlite and provided a 226.7-kg sample. The hole was terminated while still in kimberlite.

The Sue pipe is one of seven known kimberlite pipes at Yamba Lake. It measures about 150 by 100 metres at surface.

SouthernEra plans to sink three more holes into the Sue pipe this summer. The holes are designed to define the pipe’s structure and provide a larger sample to determine the stone size distribution. Plans also call for drilling on Yamba’s other kimberlites plus a new geophysical target identified during last year’s exploration program.

Under a new option agreement, SouthernEra can acquire a 60% interest in Yamba by completing a bankable feasibility study by the end of 2006. When SouthernEra earns its 60% stake, Tanqueray Resources (TQY-V) and Mill City International (MIY-V) will each be left with a 16% stake, and Techsite Strategies (TSS-V), formerly Cypango Ventures, will hold the remaining 8%.

SouthernEra can further boost its stake to 65% by arranging on behalf of all parties, 100% of the required capital set out in the bankable feasibility study. The remaining interests of the other parties would then be reduced proportionately.

The 61-claim, 617-sq.-km property is adjacent to the property that hosts BHP Billitons’ (BHP-N) Ekati diamond mine 40 km to the south.

In the mid-1990’s, De Beers returned the project to the juniors after bulk sampling failed to reproduce encouraging results from exploration drilling. Just 19 stones weighing in at 0.635 carats were recovered from a 24.5-tonne sample derived from the Torrie pipe. Sampling of the Ptarmigan pipe came up empty.