Glencairn Explorations (ASE) has received encouraging results from a diamond exploration program in Brazil. The company is funding a $213,000(US) exploration effort on the Feijao Cru placer diamond prospect. Results from the first 16 reverse circulation drill holes completed suggest that the pay zone thickness averages 3 m. Previous work completed by other operators in the 1970s indicated that the zone had a thickness of 1.65 m.
A report completed for Glencairn by a consulting engineer concludes that the prospect hosts 300,000 cu m of reserves grading one carat per cu m. Diamonds currently sell for $80(US) per carat. The potential for a much thicker pay zone suggests that these reserves could be increased.
The 16 holes completed are part of a 44-hole program designed to evaluate the property. The program also calls for the mining and processing of an 800-cu-m bulk sample. This work will require four months to complete.
Glencairn can earn a 50% interest in the Brazilian mining company which owns a 100% interest in the property, by spending a total of $450,000(US) on exploration and development.
Glencairn has also completed a private placement with an individual investor which netted the treasury $173,250. The company issued 350,000 common shares at 50} per share in addition to warrants which allow the holder to purchase another 175,000 shares at 60} per share for an 18-month period.
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