United Reef sells rough diamonds

A parcel of rough diamonds recovered from the Bamingui River property has netted gross proceeds of US$316,657, which equates to an average value of US$204.37 per carat.

Owner United Reef (TSE) says the average dollar value received for the 1,549.82-carat parcel is about 13% higher than the realized value of diamonds sold last year from its project in the Central African Republic. During 1995, the company sold a total of 3,267.35 carats of diamonds, in three separate tenders, for total proceeds of US$590,834.

Early this year, the company started an exploration program designed to expand minable reserves of diamond-bearing gravels within three river systems on the property; the Bangoran, Bamingui and Goumbiri.

The known deposits within these river systems are within hauling distance of the existing processing plant. United Reef expects that, after they are proved up by drilling and bulk sampling, these reserves will support expansion of the processing capacity, leading to expanded production in 1997.

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