30th Nov 2005 07:01
Sierra Leone Diamond Company Ld30 November 2005 Immediate Release 30 November 2005 SIERRA LEONE DIAMOND COMPANY LIMITED QUARTERLY RESULTS FOR THE NINE MONTH PERIOD ENDED 30 SEPTEMBER 2005 Sierra Leone Diamond Company Limited ("SLDC") is pleased to provide its resultsfor the nine month period ended 30 September 2005. Highlights for the three month period ended 30 September 2005 include: Financial Highlights • Cash in hand US$ 20.6 million, which is budgeted to cover exploration and corporate expenses to 31 December 2006• Exploration costs of US$ 1.8 million incurred in the quarter, US$ 8million year to date• Net loss for the period US$ 1.4 million (2004: US$ 0.7 million) and US$3.2 million (2004: US$ 2.6 million) year to date Operational Highlights • "A" Rated targets were generated from the aeromagnetic program (HRAM) with follow up in progress• 900 Soil Samples taken in the period (4,926 in total) are being processed leading to - HRAM follow-up samples taken in areas of interest - Stream sediment follow-up samples • Kamakwie (North Western License Area) - New mineral trend being identified - Estimated one billion ton iron ore deposit. Commenting on the results David Gadd-Claxton, CEO, stated: "Sierra Leone Diamonds has made further progress in the last quarter, with veryencouraging sampling and HRAM programme results. We have discovered further newkimberlites, over 250 alluvial diamonds, and are very encouraged by thenon-diamond mineral resources which occur within our licenses. We remain ontrack to bringing on stream our alluvial operations in the next few weeks and tothe further evaluation of what looks to be promising progress on our hard rockstrategy." For further information please contact: Sierra Leone Diamond Company Limited 44 (0)1442 257246David Gadd-Claxton, President and Chief Executive OfficerMartin Dunham, Chief Financial Officer Buchanan Communications 44 (0)20 7466 5000Bobby MorseFrances Adigwe Attached: Chief Executive's Report CHIEF EXECUTIVES REPORT The Company's short term strategy to develop a cash positive operation from itsalluvial deposits remains on track and achievable. In line with this plan, amineral deposit of alluvial gravels continues to be developed. A potentiallyhigher grade alluvial deposit has been discovered in the Kono district of SierraLeone and in quarter four SLDC will be relocating its bulk sampling plant fromthe Sewa River to Kono. Operational Review The strategy of the Company, stated at its flotation on AIM, was to explore fornew sources of hard rock diamondiferous kimberlites in Sierra Leone. Supportingthis long term exploration programme was the development of near term revenuesthrough alluvial diamond production and the exploitation of SLDC's othernon-diamond mineral potential. High Rock Diamond Exploration During the period, SLDC completed the annual contracted High Resolution Aeromagnetic survey (HRAM). Furthermore, the first phase reconnaissance stream sediment sampling programme of the Company's property holdings in northern Sierra Leone is nearing completion. Data received to date confirms the discovery of a new kimberlite province in this region, previously thought to be barren. Several kimberlitic ilmenites and other indicator minerals - not associated with the known Koidu pipes - have been found in the Kamakwie and Kono areas. The largest diamonds found on the Company's properties so far from previous alluvial production were 56ct and 28ct. The discovery of hard rock sources bodes well for the future exploration programme. The High Resolution Aero Magnetic data is being interpreted, and has lead to theconfirmation of several new targets. 137 targets have so far been identified inthe Kamakwie area, and eight at Marampa. Exploration activities in the Northwest Block license (Kamakwie area) havedetected two distinct kimberlitic anomalies as indicated by the spatialdistribution of significant quantities of unweathered, angular picro-ilmenites.This is the first time new kimberlitic anomalies have been found in this regionof Sierra Leone. SLDC will continue to develop its understanding of theseanomalies over the coming months to confirm the source rock types. The Kimberlitic Indicator Mineral Sampling program has collected a total of4,317 stream sediment samples, representing 86% of the annual target. Since theinception of the programme in 2004, a total of 4,926 samples have beencollected. In excess of 500 follow up samples have been taken resulting fromthis program. Sewa Block and Alluvial Operations A five ton per hour DMS sample plant was commissioned, in June 2005, within thepotential alluvial diamond area along the Sewa River. The sampling plant andassociated mining equipment has the capacity to process 25,000 tons of gravelsper month. The monsoon season commenced in July, this as expected restricted theprogress of operations on the Sewa River. Drilling of the alluvial terraces on the Sewa River in the Mofwe area continues to confirm previous estimates of their extent. Limited sampling of these terraces has confirmed that these terraces are diamondiferous, with a total of 272 stones being recovered during the course of the programme. The Company has so far completed 980 boreholes / pits and outlined initial potential resources of330,000 cubic metres of gravels, with gravel band thicknesses up to 11 metres in places. The largest diamond recovered from this alluvial sampling is a gem quality 3.2 carat stone. Preliminary assessments at the Kono properties have shown significant potentialfor terraces of previously un-worked alluvial gravels. Bulk sampling of thesealluvial targets in the Kono area are scheduled to commence in December. Non Diamond Exploration activities Snowden Industry Mining Consultants (Pty) Ltd were retained to carry out an assessment of the iron ore potential within the Company's license areas. The Company is now in receipt of a desk top study regarding its large Marampa and Tonkolili iron ore deposits. Previous resource estimates had indicated a resource of over 600 million tons of iron ore at Tonkolili and SLDC management estimate the potential total resource being in excess of 1 billion tons. Snowden's economic assessment has suggested a prima facie economic operation could be constructed with an IRR in excess of 20 percent. Given the non-core nature of this asset, and the potentially significant capital expenditure that it would require, SLDC is seeking Joint-Venture partners for this development. An independent consultant was retained to carry out a similar assessment of theCompanies gold potential. The report concluded that there are a large number ofrecorded gold occurrences in Sierra Leone, the majority of which relate toartisinal alluvial mining activity within and marginal to the Greenstone Belts.These areas should be the priority for any future exploration work but goldshould not be considered a high priority. An exception may occur on our SulaMountain licence where the Sierra Leone Geological Survey recorded high goldvalues associated with niobium- bearing ilmenorutile. Elsewhere, gold fromdown-slope accumulations might also be processed if this material needs to bestripped during the exploitation of a primary source. Consolidated Financial Statements of SIERRA LEONE DIAMOND COMPANY LIMITED For the nine month period ended September 30, 2005 and September 30, 2004 (Unaudited - prepared by Management) NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditorhas not performed a review of the interim financial statements they must beaccompanied by a notice indicating that the financial statements have not beenreviewed by an auditor. The accompanying unaudited interim financial statements of the Company have beenprepared by and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these financialstatements in accordance with standards established by the Canadian Institute ofChartered Accountants for a review of interim financial statements by anentity's auditor. SIERRA LEONE DIAMOND COMPANY LIMITEDConsolidated Balance Sheets (Stated in United States dollars)-------------------------------------------------------------------------------- September 30, December 31, 2005 2004 (Unaudited) (Audited)--------------------------------------------------------------------------------AssetsCurrent assetsCash and cash equivalents $ 20,619,156 $ 2,692,087Accounts receivable 1,032,323 83,651Due from related parties (note 6) - 98,995Prepaid expenses 72,823 4,000Note receivable (note 3) - 30,000-------------------------------------------------------------------------------- 21,724,302 2.908,733Deferred costs - 739,047Property and equipment (note 4) 6,116,348 2,929,859Mineral properties (note 5) 17,015,295 8,992,420-------------------------------------------------------------------------------- $ 44,855,945 $ 15,570,059-------------------------------------------------------------------------------- Liabilities and Shareholders' EquityCurrent liabilitiesAccounts payable and accrued $ 201,751 $ 1,390,645liabilitiesDue to related parties (note 6) - 325,044-------------------------------------------------------------------------------- 201,751 1,715,689-------------------------------------------------------------------------------- Shareholders' equityShare capital (note 7) 55,259,642 22,018,821Warrants (note 8) 586,804 186,804Contributed surplus (note 9) 472,760 147,297Cumulative translation adjustment (312,100) (311,744)Deficit (11,352,911) (8,186,808)-------------------------------------------------------------------------------- 44,654,194 13,854,370 Commitments (note 5)-------------------------------------------------------------------------------- $ 44,855,945 $ 15,570,059-------------------------------------------------------------------------------- SIERRA LEONE DIAMOND COMPANY LIMITEDConsolidated Statements of Loss and Deficit (Unaudited) (Stated in United States dollars)-------------------------------------------------------------------------------- Nine months ended September 30 -------------------------------- 2005 2004-------------------------------------------------------------------------------- RevenueInterest $ 680,707 $ --------------------------------------------------------------------------------- ExpensesGeneral and administrative 1,128,696 410,828Professional and other 277,446 123,193Travel 88,580 111,653Depreciation 617,707 221,492Interest 110,064Shares Issued for Past Services - 1,457,186(Gain)/loss on foreign exchange 1,408,918 (82,726)Write-off of capital asset 234,114Stock-based compensation (note 9) 325,463 --------------------------------------------------------------------------------- 3,846,810 2,585,804--------------------------------------------------------------------------------Net loss for the period (3,166,103) (2,585,804)Deficit, beginning of period (8,186,808) (800,098)-------------------------------------------------------------------------------- (11,352,911) (3,385,902)Charge to deficit for purchase ofsubsidiaryinterests and property acquisition - (4,212,279)--------------------------------------------------------------------------------Deficit, end of period $ (11,352,911) $ (7,598,181)-------------------------------------------------------------------------------- Loss per shareBasic (0.03) (0.07)Diluted (note 7) (0.03) (0.07)-------------------------------------------------------------------------------- See accompanying notes to the consolidated financial statements. SIERRA LEONE DIAMOND COMPANY LIMITEDConsolidated Statement of Cash Flows (Unaudited) (Stated in United States dollars)-------------------------------------------------------------------------------- Nine months ended June 30 ----------------------------- 2005 2004--------------------------------------------------------------------------------Cash provided by (used in)Operating activities:Net loss for the period $ (3,166,104) $ (2,585,804)Items not involving cashShares Issued for past services 1,457,186Depreciation 617,707 221,492Interest 110,064Write-off of capital assets 234,114Unrealized foreign exchange (gain)/loss 1,408,918 (82,726)Stock-based compensation 325,463 --------------------------------------------------------------------------------- (814,016) (645,674)Changes in non-cash working capital (note 10) (1,952,232) (30,678)-------------------------------------------------------------------------------- (2,766,248) (676,352)--------------------------------------------------------------------------------Financing activities:Proceeds/(Payments) on note receivable 30,000 (19,776)(Repayment to) advance from related parties (226,049) (1,853,374)Issuance of share capital 37,230,480 9,725,865Share issue costs (2,850,968) (134,093)Changes in non-cash working capital (note 10) (364,884) 26,335-------------------------------------------------------------------------------- 33,818,579 7,744,957--------------------------------------------------------------------------------Investing activities:Purchase of capital assets (3,804,196) (2,517,366)Mineral property expenditures (8,022,875) (3,840,733)Changes in non-cash working capital (note 10) 110,727 434,693-------------------------------------------------------------------------------- (11,716,344) (5,923,406)--------------------------------------------------------------------------------Unrealized foreign exchange gain (1,408,918) 82,726--------------------------------------------------------------------------------Increase in cash 17,927,069 1,227,925Cash, beginning of period 2,692,087 4,529--------------------------------------------------------------------------------Cash, end of period $ 20,619,156 $ 1,232,454-------------------------------------------------------------------------------- Supplemental cash flow informationInterest paid $ - $ --------------------------------------------------------------------------------- See accompanying notes to the consolidated financial statements. SIERRA LEONE DIAMOND COMPANY LIMITEDNotes to Consolidated Financial Statements (Unaudited) (Stated in United States dollars) 1. Future operations: Sierra Leone Diamond Company Limited (the "Company"), is engaged in the businessof exploring for, and if successful, ultimately producing, diamonds from itsmineral properties located in Sierra Leone. The Company's interests are comprised of 20 mineral licenses. A period of civilunrest in Sierra Leone from 1997 to 2003 impaired the Company's ability to carryon its exploration activities in the past. The Company recommenced operations inSierra Leone in January 2003. All of the Company's mineral licenses are at theexploration stage. 2. Basis of Presentation: These unaudited interim consolidated financial statements have been prepared bymanagement in accordance with Canadian generally accepted accounting principlesand on a basis consistent with the audited December 31, 2004 consolidatedfinancial statements except certain disclosures have been condensed or omitted.Accordingly, these interim consolidated financial statements should be read inconjunction with the notes contained in the Company's audited December 31, 2004consolidated financial statements. Because a precise determination of manyassets and liabilities is dependent upon future events, the preparation ofperiodic financial statements necessarily involves the use of estimates andapproximations. Accordingly, actual results could differ from those estimates.The financial statements have, in management's opinion, been properly preparedusing careful judgment within reasonable limits of materiality and within theframework of the significant accounting policies. These consolidated financial statements include the accounts of the Company andits wholly owned subsidiaries SLDC (UK) Ltd., SLDC Management Limited and SLDCExploration Limited. The operating results for the nine months ended September 30, 2005 may not beindicative of the results for the year ended December 31, 2005. Prior period comparative figures have been reclassified to conform to thepresentation used in the current period. 3. Note receivable: In December 2004, the Company advanced $30,000 to an employee by way of apromissory note. The principal amount of the note is repayable in equal monthlyinstallments of $3,000 beginning January 31, 2005. Interest is accrued at 5% perannum and is due on the final repayment date of October 31, 2005. The note issecured by 55,000 common shares and 150,000 options of the Company registered inthe name of the borrower. The note was repaid in full in September 2005. 4. Property and equipment:-------------------------------------------------------------------------------- September 30, 2005 ----------------------------------------------------- Accumulated Cost depreciation Net--------------------------------------------------------------------------------Furniture and fixtures $ 134,483 $ 24,461 $ 110,022Leasehold improvements 354,209 6,847 347,362Computers andcommunicationequipment 354,059 60,071 293,988Vehicles and heavy 3,864,653 459,661 3,404,992equipmentExploration equipment 2,087,006 385,691 1,701,315Other equipment 341,597 82,928 258,669-------------------------------------------------------------------------------- $ 7,136,007 $ 1,019,659 $ 6,116,348---------------------------------------------------------------------------------------------------------------------------------------------------------------- December 31, 2004 ----------------------------------------------------- Accumulated Cost depreciation Net--------------------------------------------------------------------------------Furniture and fixtures $ 95,688 $ 21,444 $ 74,244Leasehold improvements 354,209 5,902 348,307Computers andcommunicationequipment 146,043 21,906 124,137Vehicles and heavy 1,071,370 147,806 923,564equipmentExploration equipment 1,399,104 187,943 1,211,161Other equipment 276,052 27,606 248,446-------------------------------------------------------------------------------- $ 3,342,466 $ 412,607 $ 2,929,859-------------------------------------------------------------------------------- 5. Mineral properties: As at September 30, 2005, the Company held 20 exploration and prospectinglicenses in Sierra Leone. Pursuant to the terms of all licenses, the Company isrequired to pay total annual license fees of approximately $449,300. Inaddition, the licenses require the Company to meet certain conditions includingincurring exploration expenditures in accordance with agreed budgets. Alllicenses may be extended at the discretion of the Ministry of Mineral Resourcesof Sierra Leone to extend the time frame to perform the commitments, ifrequired, to effectively complete the proposed work programs. With respect to 12 of the licenses, the Company is required to incur qualifyingexpenditures totaling $10,610,000 prior to various dates between Feb 1, 2005 andJune 1 2005. Based on the outcome of previous expenditures, the Company mayelect to proceed with the remaining exploration expenditures in accordance withthe agreed budgets. As at September 30, 2005, the Company had incurredapproximately $9,569,087 of qualifying expenditures on these 12 licenses. With respect to seven of the licenses, the Company is required to incur Phase 1qualifying expenditures of $1,442,000 prior to various dates between March 23,2005 and May 19, 2005 and additional qualifying expenditures of $565,000 priorto various dates between March 23, 2006 and May 19, 2006. As at September 30,2005, the Company had incurred approximately $ 3,810,286 of Phase I and IIqualifying expenditures on the seven new licenses. With respect to the remaining license, the Company is required to incurqualifying expenditures of $1,660,000 prior to October 8, 2005 and additionalqualifying expenditures of $325,000 prior to October 8, 2006. As at September30, 2005, the Company had incurred approximately $ 1,596,031 of qualifyingexpenditures on the new license. The Company's mineral licenses are as follows:-------------------------------------------------------------------------------- December 31 Additions September 30 2004 (Allocations) 2005--------------------------------------------------------------------------------North East BlockAcquisition costs $ 835,576 $ 191,740 $ 1,027,316Exploration costs 5,125,418 2,407,606 7,533,024Sewa River BlockAcquisition costs 385,682 125,222 510,904Exploration costs 641,376 2,590,565 3,231,941North West BlockAcquisition costs 99,644 66,754 166,398Exploration costs 935,896 1,332,668 2,268,564Gori Hills BlockAcquisition costs 51,633 39,012 90,645Exploration costs 80,607 265,238 345,845Coastal BlockAcquisition costs 94,183 - 94,183Exploration costs 682,920 913,111 1,596,031Joint VenturePropertiesAcquisition costs 59,485 - 59,485Exploration costs - 90,960 90,960-------------------------------------------------------------------------------- $ 8,992,420 $ 8,022,876 $ 17,015,296-------------------------------------------------------------------------------- 6. Due to related parties: (a) As at December 31, 2004, the Company had a receivable from a company(the "related company") related to an officer and director of the Company in theamount of $98,995. These amounts were repaid in June 2005. (b) As at December 31, 2004, the Company had amounts due to other relatedparties in the amount of $325,044. These related parties consist ofshareholders, officers and directors of the Company and companies controlled orsignificantly influenced by shareholders and officers of the Company. Theseamounts were repaid in June 2005. 7. Share capital: (a) Issued:-------------------------------------------------------------------------------- NumberCommon Shares of Shares Amount--------------------------------------------------------------------------------Balance, December 31, 2004 70,063,242 $ 22,018,821Private placement for cash (i) 26,700,000 37,528,149Share issue costs - (4,287,328)--------------------------------------------------------------------------------Balance, September 30, 2005 96,763,242 $ 55,259,642-------------------------------------------------------------------------------- (i) On February 10, 2005, the Company completed an equity issue of26,700,000 common shares at U.S.$1.39 (75 pence) for total gross proceeds ofU.S.$37,528,149 (£20,025,000). 1,335,000 broker's warrants were issued ascommission on the equity issue and have been included in share issue costs at anascribed value of $400,000 (see note 8). The warrants are exercisable at U.S.$1.32 (75 pence, converted at the September 30, 2005 exchange rate) and expire inAugust 2006. (b) Options On March 30, 2005, the Company granted 2,000,000 share purchase optionsexercisable in U.K. pence to two employees at an exercise price of U.S.$1.32 (75pence) per share, expiring March 2010. The options vest as to one-third on thefirst, second and third year anniversaries of the grant date. On July 18, 2005, the Company granted 300,000 share purchase options exercisablein U.K. pence to a non-executive director at an exercise price of U.S.$1.32 (75pence) per share, expiring July 2010. The options vest as to one-third on thefirst, second and third year anniversaries of the grant date. On September 2, 2005, the Company granted 2,000,000 share purchase optionsexercisable in U.K. pence to two employees at an exercise price of U.S.$1.32 (75pence) per share, expiring September 2010. The options vest as to one-third onthe first, second and third year anniversaries of the grant date. At September 30, 2005, the Company cancelled 3,225,000 share purchase optionspreviously granted to former employees. The fair value of options granted during the period was estimated using theBlack-Scholes fair value pricing model with the following significantassumptions: -------------------------------------------------------------------------------- Expected life (years) 5.0Risk-free interest rate 3.5%Volatility 40%Weighted average fair value per option $0.31 -------------------------------------------------------------------------------- For the purposes of recording stock-based compensation, the estimated fair valueof the options is recognized over the vesting period of the option. The following summarizes information about stock options outstanding as at March31, 2005:-------------------------------------------------------------------------------- Number of Weighted-Average Options Exercise Price U.S.$ Pence--------------------------------------------------------------------------------Opening 6,975,000 0.90 (1) 51Forfeited (3,675,000) 0.90 51Granted 4,300,000 1.32 74--------------------------------------------------------------------------------Closing 7,600,000 1.04 58-------------------------------------------------------------------------------- (1) As the options are exercisable in Pence, the opening U.S.$ price has beenupdated to reflect the conversion to U.S.$ using the exchange rate as at theSeptember 30, 2005 balance sheet date. -------------------------------------------------------------------------------- Weighted average Number of remaining Weighted averageExercise price options contractual exercise price Number-------------- ------------------U.S.$ Pence outstanding life (years) U.S.$ Pence exercisable-------------------------------------------------------------------------------- 0.88 50 3,025,000 3.75 0..88 50 - 1.32 75 4,575,000 4.68 1.32 75 - ------------------------------------------------------------------ 7,600,000 4.08 1.14 65 --------------------------------------------------------------------------------- (c) Per share amounts Per common share calculations are based on 92,313,242 (2004 - 23,162,912) basicweighted- average number of common shares outstanding during the year. Incomputing diluted per share amounts, all of the Company's outstanding optionsand warrants have been excluded as they are anti-dilutive. 8. Warrants: The following tables summarize information about common share purchase warrantsexercisable as at September 30, 2005:-------------------------------------------------------------------------------- Weighted Average Exercise Price Fair ----------------------------------- Number U.S. CAD Pence value--------------------------------------------------------------------------------Balance, December31, 13,200,001 $ 0.88 (1) $ 1.10 - $ 186,8042004Issued February 1,335,000 1.32 - 75 400,000--------------------------------------------------------------------------------Balance, September30, 2005 14,535,001 $ 0.93 $ 1.10 75 $ 586,804-------------------------------------------------------------------------------- (1) As the opening balance of options is exercisable in Canadian dollars, theopening U.S.$ price has been updated to reflect the conversion to U.S.$ usingthe exchange rate as at the September 30, 2005 balance sheet date. The fair value of warrants issued, measured on the date of issue, was determinedusing the Black-Scholes fair value pricing model with the following weightedaverage assumptions:-------------------------------------------------------------------------------- Expected life (years) 1.5Risk-free interest rate 3.5%Volatility 40%Weighted average fair value per option $0.30 -------------------------------------------------------------------------------- The following summarizes information about common share purchase warrantsoutstanding as at September 30, 2005:-------------------------------------------------------------------------------- Number Weighted Outstanding Average Weighted Average Exercise Price and Remaining Exercise Price Contractual Life U.S. CAD Pence Exercisable (years) U.S. CAD Pence-------------------------------------------------------------------------------- $ 1.02 $ 1.25 9,250,001 1.35 $ 1.02 1.25 - $ 0.60 $ 0.75 3,950,000 1.75 0.60 0.75 - $1.35 - 75 1,335,000 0.91 1.35 - 75 ------------------------------------------------------ 14,535,001 0.75 $ 0.93 1.10 75-------------------------------------------------------------------------------- 9. Contributed surplus: Contributed surplus relates to the estimated fair value of options recognized asstock-based compensation over the vesting period of each option grant.-------------------------------------------------------------------------------- September 30 2005--------------------------------------------------------------------------------Opening $ 147,297Options granted in 2004 327,052Forfeiture of options granted in 2003 (1,589)-------------------------------------------------------------------------------- $ 472,760-------------------------------------------------------------------------------- 10. Changes in non-cash working capital:-------------------------------------------------------------------------------- Nine months ended September 30 2005 2004--------------------------------------------------------------------------------Accounts receivable $ (948,672) $ (4,230)Prepaid expenses (68,823) -Accounts payable and accrued liabilities (1,188,894) 3,413-------------------------------------------------------------------------------- $ (2,206,389) $ (817)-------------------------------------------------------------------------------- The change in non-cash working capital relates to the following activities:-------------------------------------------------------------------------------- Nine months ended June 30 2005 2004--------------------------------------------------------------------------------Operating $ (1,952,232) $ (817)Financing (364,884) -Investing 110,727 --------------------------------------------------------------------------------- $ (2,206,389) $ (817)-------------------------------------------------------------------------------- 11. Related party transactions: (a) During the nine months ended September 30, 2005, the Company incurred$36,939 (nine months ended June 30, 2004 - $29,490) for administration servicesby a company related to a former officer and director of the Company. (b) During the nine months ended September 30, 2005, the Company incurred$93,026 (nine months ended September 30, 2004 - $41,233) for financialconsulting services by a shareholder of the Company. 12. Segmented information: The Company's activities are conducted in following geographic segments. Allactivities relate to the exploration of diamonds from its mineral properties.-------------------------------------------------------------------------------- Sierra Leone Bermuda Great Britain Total $ $ $ $--------------------------------------------------------------------------------Nine months ended September 30, 2005RevenueInterest - 404,213 276,494 680,707ExpensesGeneral andadministrative - 810,448 318,248 1,128,696Professional - 261,065 16,380 277,445Travel - 45,719 42,861 88,580Depreciation 606,627 2,332 8,748 617,707Foreign exchange - 30,691 1,378,227 1,408,918Stock-based - 325,463 - 325,463compensationLoss for the period (606,627) (1,071,505) (1,487,970) (3,166,102)Capital expenditures 11,765,059 - 62,012 11,827,071Total assets 24,509,583 20,173,220 173,142 44,855,945 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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