Trans Hex secures world class alluvial assets in Angola

Trans Hex secures world class alluvial assets in Angola                         
Trans Hex Group Limited                                                         
(Cape Town, 25th September 2002)                                                
JSE-listed Trans Hex Group has secured two of the most sought-after             
alluvial diamond concessions with already delineated reserves exceeding         
1 700 000 carats as the starting point for its mining venture into              
Angola.                                                                         
The joint venture with the Angolan State Diamond Organisation (Endiama),        
to mine in the diamond-rich Lunda Norte province, secures two                   
concessions which will yield more than 400 000 carats annually for the          
partners at an expected market price in excess of US$250 per carat.             
Trans Hex chief executive officer Calvyn Gardner said : "Many companies         
have been chasing these assets, in particular the Luarica Concession.           
It is widely regarded as one of, if not, the best alluvial diamond              
concession in the world."                                                       
"And while the stone size at the second concession - Fucauma - is               
slightly smaller, the grade is exceptional which identifies it as a             
truly A Class deposit," added Gardner.                                          
The Luarica Concession, 480km} in size and situated 40 kilometres               
northeast of Lucapa, is an already well-established mining area.                
Results from earlier exploration on a fraction of the alluvial deposit          
revealed a reserve of more than 800 000 carats.  Diamond production is          
scheduled to begin during the first quarter of 2003.                            
The second area, known as the Fucauma Concession, is more than 1 440km}         
and is located 100 kilometres further north.  A short sampling                  
programme, intended to confirm the already identified 900 000 carat             
reserve, will be the precursor to full-scale mining scheduled for early         
2003.                                                                           
"Both projects are ideal for start-up operations as they allow for              
almost immediate cash flow generation," said Gardner.  "A number of             
project options had been reviewed but these two were selected because           
they met our strict investment criteria which included a low risk               
profile and short commissioning period."                                        
Cash for the new venture will be funded from Trans Hex`s own resources          
and together with Endiama the two partners will take-up the majority            
stake, with the remaining portion held by shareholders from the local           
community.                                                                      
"We are very excited with our entry into Angola," said Gardner.  "This          
is the first time that Trans Hex will have access to alluvial diamond           
deposits of this calibre.  We have established an office and logistics          
company in Luanda over the last eight months and planning for both              
projects is well advanced."                                                     
"Trans Hex is well-known in the industry as an expert alluvial mining           
company with the ability to make money from marginal deposits," said            
Gardner.  "We are looking forward to operating these A-class assets and         
developing them to their full potential."                                       
Tokyo Sexwale, Trans Hex chairman, said : "The recent return to peace           
and the long-term relationship that Mvelaphanda has fostered with the           
Angolan Government has facilitated this new partnership.  Trans Hex and         
Mvelaphanda`s reputation as producers of high-value conflict-free               
diamonds will assist in promoting the Angolan diamond industry as a             
leader in the responsible and sustainable marketing of diamonds."               
"Mining is one of the cornerstones for the renewal of Africa through the        
New Partnership for Africa`s Development (NEPAD) initiative championed          
by South African President Thabo Mbeki," concluded Sexwale.  "The start         
of these two projects in Angola is tangible evidence of the benefits            
NEPAD can bring to the region."                                                 
Ends.                                                                           
For further information     : Calvyn Gardner                                    
Trans Hex Group          Tel: 021 937 2000 / 082 444 3370                       
Issued by                   : Cullum Johnston                                   
                              BHA Communications                                
                         Tel: 021 683 2685 / 083 212 2455                       
Date: 25/09/2002 02:55:15 PM Supplied by www.sharenet.co.za                     
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