July 26, 2001
Results For The Quarter Ended June 30, 2001
TRANS HEX INTERNATIONAL LTD. (CDNX: THI) today announced the results from its operations for the three months ended June 30, 2001.
At the Barra Grande project in Brazil, processing of selected blocks from all levels of the southern target, Villa Barroso, is substantially complete. Although commercial grades were not achieved, the results confirmed the presence of diamonds of a reasonably large average stone size, with all stones recovered to date being of gem quality. A preliminary valuation of the stones produced to date indicates an average value of approximately US$225 per carat. Treatment of the gravel samples from a second trench located at the northern target, Queixada, which are being transported to the existing processing plant site, has commenced and is expected to continue through October 2001.
In Botswana, an assessment of magnetic data and the Company's own initial sampling results has generated additional target areas to the south and east of the Company's Ngamiland kimberlite project. A further 10 licences covering these targets have been granted. A first phase program will comprise soil sampling on a five kilometre square grid across the expanded licence area, to extract the heavy mineral fraction and to examine these for kimberlite indicator minerals.
On the Skeleton Coast of Namibia, the sampling expedition to Swallow Breakers sampled only four sites before having to return to port due to the poor weather conditions. The sites yielded coarse gravels with plentiful heavy mineral content, but no diamonds. Further sampling has been postponed until the weather improves, possibly towards the end of the year.
As at June 30, 2001, the Company had net working capital of $622,000, which included cash and equivalents of $1,501,000 (March 31, 2001: $1,488,000), compared to $395,000 at March 31, 2001. Included in accounts payable and accrued liabilities is an amount due to the Company's parent company, Trans Hex Group Limited, of $857,000 (March 31, 2001: $834,000).
Trans Hex International recorded a net loss of $229,000 for the quarter ended June 30, 2001 (2 cents per common share) compared to a net loss of $253,000 (2 cents per common share) in the comparable period of fiscal 2001. General and Administration expenses for the quarter amounted to $235,000 (2001: $219,000). Included in general and administration expenditure during the period is $87,000 of attributable legal expenses, relating to arbitration proceedings in Namibia. Exploration expenditure capitalized during the three months under review amounted to $765,000 (2001: $400,000), the most material component being $691,000 incurred at the Barra Grande project in Brazil.
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. Tel +1.416.572-2033 Fax +1.416.572-4164 E-Mail email@example.com
Peter D. Danchin - Chief Operating Officer Tel +27.21.939-1105 Fax +27.21.939-0711 E-Mail PeterD@transhex.co.za
Peter W.A. Walker - Vice President, Exploration Tel +27.21.939-1105 Fax +27.21.939-0711 E-Mail PeterW@transhex.co.za
Stephen Woodhead - Chief Financial Officer Tel +1.416.572-2033 Fax +1.416.572-4164 E-Mail firstname.lastname@example.org