LAS VEGAS, NEVADA -- (Marketwire) -- 04/07/09 -- 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.
