Trans Hex pursues alluvial gems

Trans Hex International (THI-T) continues to explore for alluvial diamonds in Brazil, Namibia and Zimbabwe.

In eastern Brazil’s Minas Gerais state, along the banks of the Rio Grande River, the company is testing gravels by means of reverse-circulation (RC) drilling. Trans Hex can earn a half-interest in 34,723 ha from Verena Minerals (VMCO-C) by spending US$2 million on exploration.

Meanwhile, at its Northbank project in southern Namibia, the company expects to begin bulk-sampling a 30-million-cubic-metre resource in a paleochannel that branches off the Orange River. The program was delayed several months by a dispute with a local farm owner; however, an arbitration commission has cleared most of the impediments.

Trans Hex is maintaining a half-interest in the property by footing 75% of exploration expenses. The remaining interest is divided between two private companies.

Also in Namibia, Trans Hex is seeking sub-marine deposits along 41,538 ha of the Skeleton Coast. Upcoming exploration will include geophysical surveying and sediment sampling farther offshore.

Farther to the east, in Zimbabwe, Trans Hex has entered into a joint venture with London-based Rio Tinto and a private company. The partners will explore for diamonds in in the prospective Limpopo mobile belt, in an area previously explored by Falconbridge (FL-T), which maintains a residual interest in the current project.

Trans Hex lost $2.9 million (or 21 cents per share) in the year ended March 31. Trans Hex has $3.6 million in working capital and $3.2 million in long-term debt. The debt is owed to South African-based Trans Hex Group, which holds 72% of the company’s equity, and is interest-free.