August 09, 2000
Quarterly Report For The Three Months Ended June 30, 2000
TRANS HEX INTERNATIONAL LTD. (CDNX: THI) is pleased to announce the results of its operations for the three months ended June 30, 2000.
Following extensive reverse circulation drilling on the Barra Grande peninsula, in the Minas Gerais state of Brazil, including heavy mineral analysis of the drill samples, three high priority targets have been selected. The determination of the precise location and pit design for the first trench are nearing completion, with excavation of overburden expected to commence by the end of August 2000. Construction of a pan plant, capable of treating 15 tonnes-per-hour, run-of-mine has commenced, with commissioning scheduled for October 2000. The granting of the necessary environmental permit and the permit for the excavation of samples are expected shortly. 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.
The Company continues to pursue recognition of its rights in the dispute over surface access at the Northbank project in Namibia. At a hearing in the High Court of Namibia on August 15, 2000, Aussenkehr Farms will challenge the constitutionality of the 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 three months under review exploration and development expenditure capitalized amounted to $400,000 (2000: $172,000), the most material component being $374,000 incurred at the Barra Grande project in Brazil. The net operating loss for the period was $253,000 (2000: $231,000), including $16,000 of general exploration. As at June 30, 2000 the Company had working capital of $1.7 million (1999: $3.1 million), including $1.2 million available for general exploration and administration expenses, and project related long-term debt of $1.0 million (1999 loan: $3.1 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. Tel +1.416.363-5440 Fax +1.416.363-6506 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 +1.416.363-5440 Fax +1.416.363-6506 E-Mail firstname.lastname@example.org