October 26, 2000
Quarterly Report For The Six Months Ended September 30, 2000
TRANS HEX INTERNATIONAL LTD. (CDNX: THI) is pleased to announce the results of its operations during the six months ended September 30, 2000.
At the Barra Grande alluvial diamond exploration project in the Minas Gerais state of Brazil the location and pit design for the first trench are complete and excavation of overburden has commenced. Construction of a pan plant, capable of treating 15 tonnes-per-hour run-of-mine is in progress, with commissioning expected during December 2000. Initial results from this first trench, the first of the current sampling program designed to provide an initial estimate of the diamond grades and values, are expected by the end of the fiscal year. It is expected that the Company's expenditure commitment of US$2 million, to earn its 50% project interest, will be reached during the quarter ending December 2000 after which the partners are required to fund ongoing expenditure in proportion to their respective interests.
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, now set for February, 2001, will hear Aussenkehr Farms challenge the constitutionality of the Namibian Minerals Act, particularly the Minerals Ancillary Rights Commission ("MARC") compensation award process, the validity of Northbank's exclusive prospecting licence and alleged bias shown by the Minister of Mines. A counter-application by Northbank, requesting enforcement of the contract negotiated with the farmer in December 1999, will be heard concurrently by the High Court. 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 six months under review exploration expenditure capitalized amounted to $855,000 (2000: $606,000), the most material component being $744,000 incurred at the Barra Grande project in Brazil. A further $283,000 was invested in capital assets at this project. The net operating loss for the period was $581,000 (2000: $471,000), including $106,000 of general exploration. As at September 30, 2000 the Company had working capital of $1.15 million (1999: $2.54 million), and project related long-term debt of $1.35 million (1999 related party loan: $3.13 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