September 12, 2000
Exploration Update - Barra Grande, Brazil
TRANS HEX INTERNATIONAL LTD. (CDNX: THI) is pleased to provide an update on its exploration activities at the Barra Grande alluvial diamond project in Brazil.
Following extensive drilling and heavy mineral analyses on the Barra Grande peninsula, in the Minas Gerais state of Brazil, three high priority targets have been selected.
- Agreements have been concluded for the right of access, and related compensation, with the surface owners whose properties cover a substantial portion of the northern and southern targets. Negotiations are at an advanced stage with the relevant parties concerning the central target. These agreements provide the Company with access to the properties for the duration of the exploration permits, and all extensions thereof, with re-negotiation necessary for the mining phase.
- Following a meeting of the environmental committee ("COPAM"), incorporating the state environmental agency ("FEAM") as well as other interest groups, on August 28, 2000 the necessary environmental permits, which include all three high priority target areas, have been approved.
- The determination of the location, within the southern target area, and pit design for the first sample trench is complete. An estimated 21,000 tonnes of overburden will be excavated to expose an estimated 16,000 tonnes of intermediate and basal gravels, which will be excavated and tested.
- The earthmoving contractor has been appointed, with mobilization and the excavation of overburden expected to commence later this week.
- Construction of a dual pan plant, capable of treating 15 tonnes-per-hour run-of-mine, is proceeding on schedule for commissioning in October 2000.
- Results from the first trench, the first of the current sampling program designed to provide an initial estimate of the diamond grades and values, are expected in early 2001.
- The Company's expenditure commitment, in order to earn its 50% project interest, of US$2 million is expected to be reached by October 2000 after which the partners are required to fund ongoing expenditure in proportion to their respective interests.
Drilling at the Rainbow property in Botswana was stopped at a depth of 245 metres without intersecting kimberlite. No further work is intended and the option agreement with Rainbow Resources has been terminated. The Company has no further commitments regarding this property.
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