Drilling Report

SouthernEra Resources Limited - Yamba Lake drill program produces

    further encouraging results

 

    Shares Issued and Outstanding: 51,723,800

    TSX: SUF

    AIM: SRE

 

    TORONTO, Oct. 29 /CNW/ - SouthernEra Resources Limited is pleased to

report on microdiamond results returned from the Sue and Sputnik kimberlite

pipes at the Yamba Lake Project in the Northwest Territories.

    Following the encouraging microdiamond results returned from drill hole

Y02-06 that tested the Sue pipe during April, 2002 (News Release July 8,

2002), a further three drill holes tested the Sue pipe during August.

    The Sue microdiamond results from the follow-up three drill holes Y02-09,

Y02-10 and Y02-11, and drill hole Y02-06 are tabulated in Table 1. The Sue

diamond recoveries based on the individual square mesh screen categories are

listed in Table 2. All samples were independently tested by Saskatchewan

Research Council's (SRC) Geoanalytical Laboratory in Saskatoon, Saskatchewan.

The drill core samples were processed by SRC's standard caustic fusion diamond

recovery system.

   

    Table 1. Sue Pipe Diamond Results

 

    -------------------------------------------------------------------------

                                            Diamonds Recovered

                  Total Sample  ---------------------------------------------

    Drill Hole      Weight                   +0.5 mm             +1.0 mm

                  (Kilograms)   Total   -------------------------------------

                                        1 Axis    2 Axes    1 Axis    2 Axes

    -------------------------------------------------------------------------

    Y02-06          226.7        95        18        12        3         1

    -------------------------------------------------------------------------

    Y02-09          190.95       45        5         5         3         1

    -------------------------------------------------------------------------

    Y02-10          147.9        37        4         1         0         0

    -------------------------------------------------------------------------

    Y02-11          151.33       37        6         4         3         3

    -------------------------------------------------------------------------

 

    The four largest stones recovered from drill hole Y02-06 are:

    1.44x1.10x1.04 millimeters, 1.56x0.72x0.66 millimeters,

    1.16x0.64x0.50 millimeters and 0.90x0.76x0.60 millimeters.

 

    The three largest stones recovered from drill hole Y02-09 are:

    1.56x1.00x0.80 millimeters, 1.10x0.78x0.60 millimeters

    and 1.16x0.58x0.56 millimeters.

 

    The three largest stones recovered from drill hole Y02-11 are:

    2.60x1.94x1.68 millimeters (0.048 carat), 1.70x1.26x0.64 millimeter

    and 1.48x1.02x0.96 millimeters.

 

    Table 2. Sue Pipe Diamond Results

 

    -------------------------------------------------------------------------

                       Number of Diamonds Recovered

    Square Mesh   -----------------------------------------------------------

    Sieve Size       Y02-06      Y02-09       Y02-10      Y02-11

                   (226.7 kg)  (190.95 kg)   (147.9 kg)  (151.33 kg)

    -------------------------------------------------------------------------

    +1.180 mm           0           0             0           1 (0.048 carat)

    -------------------------------------------------------------------------

    +0.850 mm           1           1             0           1

    -------------------------------------------------------------------------

    +0.600 mm           2           0             0           1

    -------------------------------------------------------------------------

    +0.425 mm           7           4             1           0

    -------------------------------------------------------------------------

    +0.300 mm           7           1             0           1

    -------------------------------------------------------------------------

    +0.212 mm           8           7             11          9

    -------------------------------------------------------------------------

    +0.150 mm           23          8             9           9

    -------------------------------------------------------------------------

    +0.106 mm           47          24            16          15

    -------------------------------------------------------------------------

 

    In addition, one drill hole, Y02-02, tested the Sputnik pipe during

August. The Sputnik microdiamond results recovered from a total sample weight

of 194.92 kg are tabulated in Table 3.

 

    Table 3. Sputnik Pipe Diamond Results

 

    --------------------------------------------

                  Number of Diamonds Recovered

    Square Mesh  -------------------------------

    Sieve Size         Y02-08 (194.92 kg)

    --------------------------------------------

    +0.425 mm                  1

    --------------------------------------------

    +0.300 mm                  0

    --------------------------------------------

    +0.212 mm                  6

    --------------------------------------------

    +0.150 mm                  7

    --------------------------------------------

    +0.106 mm                  22

    --------------------------------------------

   

 

    SouthernEra Chairman, Dr. Chris Jennings, said: 'The Sue pipe

macrodiamond recoveries are very encouraging and the majority of the diamonds

are of a good white color and excellent quality'. SouthernEra is currently

analyzing all of the results in order to develop a program for the continued

evaluation of the known kimberlite pipes at Yamba, which may include the

collection of larger samples. The program will also include further testing of

stored drill core recovered from the Eddie and T-10 pipes and processing of

the remaining Sue 2002 drill hole kimberlite core (approximately 1 tonne)

through a dense media separation plant to recover diamonds larger than 0.8mm.

Further ground geophysical surveys will be completed within the Torrie,

Sputnik, Sue and Eddie pipe cluster to test airborne anomalies consistent with

kimberlite pipes.

    SouthernEra can earn a 60% interest at Yamba Lake by completing a

bankable feasibility study by the end of 2006. Under certain project financing

arrangements, the Company can increase its interest to 65%. SouthernEra's

partners at Yamba Lake are Tanqueray Resources Ltd., Mill City International

Inc. and Techsite Strategies Corp.

    SouthernEra Resources is a fully integrated international mining company,

which generates projects offering exceptional rates of return. The Company's

focus is on platinum group metals and diamonds. Its operations in South Africa

include the 70.4 percent owned Messina Platinum Mine and the 50 percent owned

Klipspringer Diamond Mine. The common shares of SouthernEra are traded on the

Toronto Stock Exchange (SUF) and the London Stock Exchange's AIM (SRE).

                               

    For further information: SouthernEra Resources Limited, Dr. Sally Eyre,

Vice President Corporate Affairs, Telephone: [phone],

Fax: [phone], E-mail: inbox(at)southernera.com

    (SUF.)