Rex reports discovery in Mauritania

A sampling program by Rex Diamond Mining (RXD-T) has resulted in the discovery of two diamonds found in two samples at the El Hammami lease in northern Mauritania.

The samples were taken as part of a systematic, 1-by-1-km grid covering a graben structure where a high concentration of kimberlitic G10 garnets have been found, along with chrome-diopside with diamond inclusion composition.

The discovery was made about 20 km north of the site of a recent trenching and pitting effort. This work did not reveal kimberlites, but it did indicate a large alluvial gravel body rich in kimberlitic garnets. The sampling east and north of this gravel body led to the diamond discovery, which will be followed up by soil sampling in the comining weeks.

On the financial front, Rex reported a net loss of US$4.4 million for its fiscal year ended March 31, compared with a loss of US$1 million a year earlier.

The loss was attributed to: development and re-equipping of the South African mines, which resulted in reduced production; restructuring and retrenchment expenses related to closure of the head office in Johannesburg; reassement and substantial writedowns of South African asssets; and exploration expenses in Mauritania and Liberia.

Rex President Serge Mueller says “extinguishing the net cashburn remains a high priority,” along with efforts to turn the producing mines into profitable operations.