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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
SOURCE: VIPR Industries Inc.
mailto:info@viprindustries.com http://www.viprindustries.com
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