February 22, 2001
Trans Hex International Ltd. Quarterly Report - December 31, 2000
TRANS HEX INTERNATIONAL LTD. (CDNX: THI) is pleased to announce the results of its operations during the nine months ended December 31, 2000.
At the Barra Grande alluvial diamond exploration project in the Minas Gerais state of Brazil, excavation of the first sample trench at the Villa Barroso target and construction of a 15 tonne-per-hour run-of-mine pan plant, along with a slimes dam and ancillary works, were completed during January 2001. Initial results from the treatment of an estimated 16,800 BCM's (bank cubic metres) of intermediate and basal gravels from this first trench, the first of the current sampling program designed to provide an initial estimate of diamond grades and values, are expected within 90-days. Processing of all of the gravels recovered from the first trench should be completed within six months. Extensive regional and infill drilling has indicated total gravel resources of at least 100 million cubic metres within the three targets selected for sampling.
The Company continues to pursue recognition of its rights in the dispute over surface access at the Northbank project in Namibia. A hearing of the High Court of Namibia is in progress. The Company has on several occasions endeavoured to settle this dispute by direct negotiation with the surface owner, without success.
In addition to the above projects, the Company is active in Namibia, Botswana and Zimbabwe.
During the nine months under review exploration expenditure capitalized in respect of ongoing projects amounted to $1,496,000 (2000: $1,070,000), the most material component being $1,336,000 incurred at the Barra Grande project in Brazil. A further $520,000 was invested in capital assets at this project. The net operating loss for the period was $818,000 (2000: $711,000), including $108,000 of general exploration and $90,000 of attributable legal expenses relating to the arbitration proceedings in Namibia. At December 31, 2000 the Company had working capital of $801,000 (December 31, 1999: $1.99 million), and project related long-term debt of $2.04 million (December 31, 1999: related party loan: $3.26 million).
Trans Hex International is an international diamond exploration company with interests in exploration projects and joint ventures in Brazil, Namibia, Botswana and Zimbabwe. The principal shareholder of the Company is Trans Hex Group Limited, a South African producer of high quality gem diamonds, with well established independent diamond marketing facilities. The design and conduct of the Company's exploration programs is the responsibility of Mr. Peter Walker, a professional geologist registered with the South African Council for Natural Scientific Professions.
FOR FURTHER INFORMATION PLEASE CONTACT:
D.M. (Niel) Hoogenhout - Chairman and C.E.O.
Peter D. Danchin - Chief Operating Officer
Peter W.A. Walker - Vice President, Exploration
Stephen Woodhead - Chief Financial Officer