Doug Ashbury
Northern News Services

NNSL (Dec 09/98) - Aber Resources Ltd., 40 per cent owner of the Diavik diamond project, reports a profit of almost $900,000 through the first three frames of 1998.

For the nine months ended September, Aber made $886,113, or two cents per share, compared to a $1.5 million loss, or four cents a share, for the same period a year ago. Revenues were $1.3 million compared to $1.1 million.

The TSE-listed company cited interest earned on additional cash following June's $102.9 million equity financing for the revenue rise.

"At the end of the third quarter, Aber had $121 million in working capital, compared with $29.2 million a year earlier," the company said.

"Aber is well financed for anticipated expenditures in 1999 and continues to explore debt financing alternatives for its 40 per cent share of the capital costs for the Diavik diamonds project."

Over the first nine months of 1998, Aber had costs of $16.1 million, primarily related to the feasibility study and environmental assessment.

Aber anticipates Diavik will be operational in second-quarter 2002, subject to government permits and a production decision by the partners.

The feasibility study is looking at processing rates from 1.5 million to 1.9 million tonnes of ore per year, yielding six million to eight million carats of diamonds annually at full production.

In September, Aber announced the estimated reserves stand at 102 million carats in 26 million tonnes of kimberlite with a diluted grade of 3.9 carats per tonne.

More than 90 per cent of the value of the diamonds produced are expected to be gem diamonds.

Diavik Diamond Mines, a subsidiary of Rio Tinto, and Aber have budgeted about $3 million for exploration. Among the targets is the A-180 pipe at Lac de Sauvage, about 25 kilometres northeast of Diavik camp.