VIPR Receives Budget to Commence Mining Operations on the Mwamagunguli Diamond Deposit, Prepares to Advance Funds While Simultan
April 07 2009 - 7:00AM
Marketwired
VIPR Industries Inc. (PINK SHEETS: VIPR) ("VIPR") Announces it has
received and is reviewing a budget towards the commencement of
mining operations on the Mwamagunguli Diamond Mine, which the
company presently has an ownership interest in. Recent events
regarding financing, has permitted VIPR to initiate discussions on
advancing further funds to the property, simultaneously increasing
its ownership position. Further details on financing to be
announced shortly.
To increase the company's ownership position in Mwamagunguli,
VIPR must advance funds that are to go strictly towards exploration
and mining of the property. Should the company be successful in
raising and advancing the required funds, mining operations can
commence as early as 60 days. Although not complete confirmation,
an independent report indicates mining operations are expected to
extract over 6,000 carats, in the first year of operations, which
could generate a minimum profit of $1,500,000 per year.
The recent pitting and trenching operation processed 725 ton of
Kimberlite gravel ore, which recovered 29 stones with a yield 49
carats of diamonds. Based on the thickness of the Kimberlite pool,
Geologist (Javan E. Bidogo) estimated a minimum resource of 100,000
carats of diamonds at a value of over $30 Million Dollars making it
a very potentially lucrative asset. The report created by JICL
Consultants provides an estimation on the potential of the deposit.
Below is a snapshot of the report. A detailed report can be
requested through the company:
Total area equals 30Ha equals 300,000 m2
Average gravel thickness equals 2.3m
Average diamond grade equals 6.8 Cpht
Density of gravel material equals 2.14 tfm3
Value of diamond in US$/carat equals 300 US$/carat
Volume of gravel equals 300,000m2x 2.3m equals 690,000 m3
Tones equals 690,000m3x 2.14 tfm3 equals 1,476,600 tonnes
Total carats equals 1,476,600 tonnes x 6.8 Cpht equals 100,408.8
carats
The Mwamagununguli Diamond Deposit was previously announced by
VIPR whereby it signed an agreement to acquire up to 50% ownership
of the property. Terms of the agreement consisted of an initial
payment, which was paid in return for an interest in the property
and exclusive rights for an agreed upon period of time. Further
funds are required to be paid in order for VIPR to receive up to
50% interest, but any funds that are deemed paid shall go strictly
to exploration of the property. Any amount of funds paid shall
enable VIPR to retain its percentage of the property on a prorate
basis. Should the exclusive period expire without all of the
required funds being advanced, VIPR shall maintain its prorate
portion and a right of first refusal.
The property is located near to the Williamson Diamond Mine. The
Williamson Mine is currently owned 75% by diamond mining giant De
Beers, and 25% by the Government of Tanzania, which has a
production history that spans six decades. The Williamson pipe
covers 360 acres and at the time of its discovery in 1940, was
considered the largest economically exploitable pipe in the world.
The large open pit mine is currently about 90 meters (300 ft) deep
and located about 160 kilometers (100 miles) south of the town of
Mwanza on the shores of Lake Victoria in Tanzania, in the Shinyanga
region. The most important geological feature of the Williamson
diamond mine is the Kimberlite pipe, which ranks as the largest
economically exploitable diamond-bearing volcanic pipe in the
world. Dr. Williamson, the discoverer of the site, first owner and
namesake of the mine, named the site "Mwadui" after a local chief;
"Williamson" and "Mwadui" are now virtually synonymous in the
diamond mining world.
JC Barbeck, President and CEO of VIPR Industries, commented:
"Although the initial results on Mwamagununguli does not confirm a
minable reserve, the highly encouraging JICL pitting and trenching
results underscore the potential for economic diamond production
along the' Mwamagununguli Diamond property. The geology report from
Mwamagununguli estimates a minimum resource of 100,000 carats of
diamonds at a value of over $30 million. These are professional
initial estimated results which could be materially different from
actual confirmed results and mineable reserves."
About VIPR Industries
VIPR Industries Inc. is a precious metals exploration and
development company focused on gold, uranium, diamonds and other
high quality precious metal resources and reserves through mergers,
acquisitions and resource development.
Safe Harbor
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
(The "Act"). In particular, when used in the preceding discussion,
the words "pleased," "plan," "confident that," "believe," "expect,"
or "intend to," and similar conditional expressions are intended to
identify forward looking statements within the meaning of the Act
and are subject to the safe harbor created by the Act. Such
statements are subject to certain risks and uncertainties and
actual results could differ materially from those expressed in any
of the forward-looking statements. Such risks and uncertainties
include, but are not limited to, general economic conditions,
inherent mining risks, market conditions, competitive factors, the
ability to successfully complete additional financings and other
risks described in the Company's filings and website, which all
investors are advised to view at
www.viprindustries.com/motion.asp?menuid=6266&lgid=1&siteid=100382.
Contacts: VIPR Industries Inc. Investor Relations (702) 940-0440
Email: info@viprindustries.com Website: www.viprindustries.com