23rd Nov 2005 11:27
Petra Diamonds Ld23 November 2005 For release 23 November 2005 Petra Diamonds Limited Alto Cuilo - new kimberlitic bodies identified and drilled Petra Diamonds Limited ("Petra" or "the Company"), the AIM-quoted and ASX-listeddiamond mining group, announces an update with regards to the kimberliteexploration programme at the Alto Cuilo project in north eastern Angola. Further to the identification of additional magnetic anomalies following therecent low level Midas survey, the anomalies have been prioritised for drillingin order to ascertain whether or not they are kimberlitic in nature, inpreparation for selecting the best anomalies for large diameter drilling andbulk sampling in 2006. The Company announces that drilling has intersected a further two newkimberlitic bodies, AC71, estimated at 32 hectares in area and AC72, estimatedat 30 hectares. A good sample of Reworked Volcanoclastic Kimberlite ("RVK") wasobtained to a depth of 122.8 metres from AC71 whilst at AC72 well developed RVKintercalated within crater facies sands was intersected from 80 metres to theend of the hole at the current depth of 197.8 metres. These positive results areparticularly pleasing as they confirm the potential for further kimberliticanomalies from the increase in known anomalies identified in the Midas survey. A surface exposure of material from the large AC16 body (the approximately 125hectare anomaly) has been treated through the bushman jig. Whilst this was notlarge enough to arrive at a grade estimate, macro diamonds were recovered fromthis sample indicating the diamond potential of this anomaly. Alluvial work continues with bulk sampling and pitting. Adonis Pouroulis, Petra's Chairman, commented, "We are pleased to announce thediscovery of further kimberlitic bodies at Alto Cuilo, further increasing thefootprint of kimberlitic discoveries to date to approximately 382 hectares. Thisshows that Alto Cuilo is an exceptional project and we look forward to morepositive developments over the coming months and thereafter on the commencementof the kimberlite bulk sampling programme." Ends Notes 1. The information in this update that relates to Exploration Results, MineralResources or Ore Reserves is based on information compiled by Jim Davidson whois a Member of the Geological Society of South Africa, a 'Recognised OverseasProfessional Organisation' ('ROPO'), included in a list promulgated by the ASXfrom time to time. Jim Davidson is a full-time employee of the Company and hassufficient experience which is relevant to the style of mineralisation and typeof deposit under consideration and to the activity which he is undertaking toqualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources andOre Reserves'. Jim Davidson has given his written consent to the inclusion inthe report of the matters based on his information in the form and context inwhich it appears. 2. It should be noted that the potential quantity in this report is conceptualin nature, there has been insufficient exploration to define a Mineral Resourceand it is uncertain if further exploration will result in the determination of aMineral Resource. For further information, please contact: Parkgreen Communications, London Justine Howarth / Cathy Malins Tel +44 20 7493 3713 Petra Diamonds, Perth John Baillie Tel +61 8 9381 8888 Field PR, Adelaide Kevin Skinner Tel +61 8 8234 9555 Mobile +61 414 822 631 Notes to Editors: In December 2004 Petra implemented a formal Joint Venture Agreement with BHPBilliton World Exploration Inc ('BHP Billiton') regarding the Alto Cuilo diamondproject in north eastern Angola. Under the terms of the Joint VentureAgreement, BHP Billiton can, by investing up to US$60 million in Petra DiamondsAlto Cuilo Limited, the JV vehicle ('Vehicle') which holds Petra's share in AltoCuilo, acquire a share of up to 75% of the Vehicle. Petra continues to yield exploration success at Alto Cuilo, with the discoveryof several major kimberlitic anomalies in 2005. A low-level Midas helicoptersurvey, carried out in July and August this year, identified new anomalies of26, 60, 125 and 148 hectares in surface area, these discoveries being inaddition to the existing 109 hectares (115 million tonne) kimberlitic depositidentified by Petra in 2004. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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