1. Most Discussed
  2. Gainers & Losers
AGY 22.5¢

agy alluvial diamonds

  1. seagull

    2,482 posts.
    AGY : Argosy Acquires Alluvial Diamond Tenements in South Africa
    ASX Report
    19:11:0231 17/02/2003 Issuer: AGY
    ARGOSY MINERALS INC 2003-02-17 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    Argosy is pleased to announce the signing of an agreement to acquire
    tenements in an area of known high grade alluvial diamond deposits in
    South Africa.

    For several months Argosy, through its consulting diamond geologist,
    has been investigating and conducting due diligence on worthwhile
    diamond opportunities in several countries. Argosy's strategy is
    focused on acquiring advanced alluvial diamond deposits suitable for
    large scale development. Such opportunities are rare and Argosy has
    entered into an agreement for the acquisition of several contiguous
    tenements in the well known diamond fields of the Northern Cape
    Province of South Africa. These tenements cover 125 square kilometres
    adjacent to existing De Beers diamond mining operations near Kleinsee
    exploiting both the inland raised marine terraces and river deposits
    of the area. The area, located l0kms north east of Kleinsee and
    70kms west of Springbok, a regional centre, is well serviced by
    infrastructure with power lines crossing the tenements and easy
    access by road.

    Major alluvial deposits are concentrated in the Buffels River Valley
    east of Kleinsee. The alluvial diamond deposits along the lower
    Buffels River are hosted in palaeochannels of the Miocene
    proto-Buffels River. The source of the diamonds may have been from
    erosion of kimberlites on the Kalahari Craton and transported to
    these sites by an ancient river that reached the Atlantic Ocean via
    the proto-Buffels River. According to a report prepared by the Mining
    Sector Coordinating Unit regarding Diamonds in the SADC(2) Region, the
    Lower Buffels area has amongst the best potential for future diamond
    production corroborated by De Beers recently reporting newly
    discovered palaeochannel deposits along the Buffels River east of
    Kleinzee with the potential to extend operations well into the 21st
    century.

    The agreement has been signed between Argosy and Albetros Inland
    Diamond Exploration Pty Ltd over prospecting rights, convertible to
    mining rights, over three farms in Namaqualand, Northern Cape
    Province. Ownership will transfer to Argosy on final payment of R20
    million, (approximately AUD$4 million, depending on exchange rates).
    Staged monthly payments will be made during a period of evaluation
    and due diligence which will commence in terms of the existing
    Prospecting Permit.

    The monthly payments during the first three month period are R300
    000, (approximately AUD$60 000). Argosy will be entitled to 70% of
    proceeds from the sale of diamonds during this period. The initial
    three month period is extendable for another three months on the same
    terms. Argosy then has the option to proceed to full ownership.

    The Albetros Alluvial Diamond Project (see attached maps) abuts the
    coastal Kleinzee, Dreyers Pan and Twee Pad mines of De Beers and is
    downstream of its river deposits at Langhoogte, Nuttabooi, Wolfberg
    and Bontekoe. The geological setting is a combination of two
    different alluvial environments comprising:

    1) Channel gravels associated with the palaeo-Buffels River, the
    conduit for the marine diamonds and;

    2) High level raised beach remnants above the 95m above sea level
    Upper Terrace.

    Drilling by Albetros confirmed the presence of the palaeo-Buffels
    River channel with extensive gravel infill. Upstream along the
    Buffels River the average grade of De Beers' mines such as Langhoogte
    over an 18 year period has been 17.2 carats per hundred tonnes.
    Additional unrelated drilling and bulk sampling has been conducted
    within the project area validating the potential for high volume,
    high grade deposits.

    According to the SADC report the size of the deposits ranges up to
    several thousand carats beneath sandy overburden. Diamonds recovered
    are predominantly gem quality with boart and cracked stones virtually
    absent. The majority of diamonds range from 0.5 to 1.2 carats per
    stone and stone quality is high with an expected overall value of
    US$350 per carat.

    With this announcement Argosy returns to its roots as a diamond
    exploration company, focussed on known alluvial deposits rather than
    targeting exploration for diamondiferous kimberlite. Drilling by
    Argosy will commence during March 2003 and bulk sampling will be
    completed with a view to implement full scale production using
    in-line pressure Jig and dense media separation technology, a new
    high throughput process currently being trialed successfully in
    alluvial diamond operations elsewhere with the added benefits of low
    operating and capital costs improved security and low water
    requirements.

    Reference

    (2)Diamonds in the SADC Region, 1998, Mining Sector Coordinating Unit,
    Mineral Resource Survey Programme 3. South African Development
    Community, D I Cole Compiler





    P H Lloyd
    CHIEF EXECUTIVE OFFICER



    For further information contact:

    Peter H Lloyd
    CHIEF EXECUTIVE OFFICER
    Argosy Minerals Inc
    Level 1, Suite 3
    23 Richardson Street
    South Perth WA 6151 Australia
    Ph: 61-8-9474-4178
    Email: [email protected]

    Cecil R Bond
    FINANCIAL DIRECTOR
    Argosy Minerals Inc
    20607 Logan Columbia
    Langley, British Columbia
    V3A 7R3 Canada
    Ph: 1-604-530-8436
    Email: [email protected]

    A copy of the maps are available in PDF format on www.asx.com.au.
    Alternatively it is available for purchase from ASX Customer Service
    on 1 300 300 279.





DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top