Randsburg tries to straighten itself for diamond finds in Brazil

Its been a rough ride for Randsburg International Gold (RGZ-V) over the last 10 months.

An extended period on the sidelines of the market was ordered by the British Columbia Securities Commission (BCSC) after it found its disclosure practices lacking.

The cease trade order came down on August 9, and Randsburg shares were only allowed to resume their regular position on the venture exchange on May 14 of this year.

Not surprisingly the circumstance surrounding the long hiatus took a heavy toll on the exploration companys share price. Its shares fell nearly 500% since May of 2006 when they were trading at $2.89. Since the beginning of June2007, theyve been trading between 45 and 60.

While a company release at the time of the initial cease-trade order blamed the halt on its failure to submit a National Instrument 43-101 report on its Titan iron-titanium-vanadium property in Northern Ontario, a release in mid-April of this year clarified that the suspension was also connected to its primary asset the Victory Strike diamond project in Brazil.

The BCSC had three concerns with the Brazilian project.

Firstly the company failed to comply with Canadian Institute of Mining (CIM) guidelines for defining diamonds. Instead of reporting the number and total weight of each size class, Randsburg used the terms micro and macro which are no longer considered industry standard.

In future the company will report sample size and weights in conformity with CIM best practice guidelines, the press release reads.

The second issue arose around the source of the diamonds. Randsburg had mistakenly reported that the source of the diamonds was bedrock composed of eclogite. While it had corrected that erroneous assertion prior to the cease-trade, it was still required to state again that the source was not eclogite but kimberlite pipes.

Lastly, the BCSC addressed security issues at the project, requiring Randsburg to revise and strengthen security in the field.

Randsburg says field parties at the project are accompanied by police due to conflicts with local land-owners, but additionally their presence keeps non-company personnel away from exploration activities.

While the company did not return phone-calls, the statement appears to be connected with BCSC concerns that non-personnel were involved in exploration activities.

The company said it had hired an exploration manager to ensure that best industry practices are followed at the site.

Randsburg holds an 85% stake in Victory Strike. It has a 100% stake in Titan and a 50% stake in the Elephant Gold and Silver project in Nevada where it is joint ventured with Duncan Park Holdings (DPH-V).