13th Mar 2006 07:01
SouthernEra DRC alluvial project returns high diamond grades and values 1,809 diamonds weighing 222.26 carats Average grade 0.67 carats per cubic meter Top stone 1.37 carats valued at $730 per carat Shares issued and outstanding: 128,343,101 TSX: SDM AIM: SRE TORONTO and LONDON, March 13 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM,AIM: SRE) ("the Company") today reported on very encouraging diamond resultsfrom its extensive Tshikapa alluvial exploration program in the DemocraticRepublic of the Congo (DRC). A total of 1,809 diamonds weighing 222.26 carats have been recovered fromsamples processed through SouthernEra's onsite diamond plant. The averagerecovered diamond grade was 0.67 carats per cubic meter with the highestdiamond grade being 13 carats per cubic meter. An independent De Beersvaluation of 213.69 carats has returned an average value of US$41.60 percarat. The largest diamond weighing 1.37 carats was valued at $730 per carat. SouthernEra controls a 34 kilometer stretch of Kasai River and2 kilometers of the Tshikapa Riverwithin this rich diamond producing area ofsouthwestern DRC. SouthernEra owns a 100% interest in four permits covering80.35km2 and a 70 percent interest in a further four permits covering77.73km2. In order to accelerate this diamond exploration program, SouthernEra ispreparing to: - Conduct a geophysical survey of the highly prospective confluence area of the Kasai and Tshikapa rivers to target the bedrock-based trap- sites in the active river for definition of an indicated resource. - Commence drilling next month of low-lying terraces adjacent to the Kasai River using a mobile Conrad PP150 Banka 8 inch drill rig. Depending on these results, a follow-up bulk sampling campaign will enable these extensive potentially bulk-mineable deposits to be moved to an inferred resource category. - Commission a 10 tonne-per-hour diamond recovery plant that is currently en route from South Africa to the DRC. This larger plant will improve diamond recoveries. The diamond potential of this alluvial project is highlighted by aMinistry of Mines report that during 2005 approximately 1.5 million caratswere mined in the Tshikapa area. The average value of these diamonds wasUS$85.86 per carat. SouthernEra's dollar per carat value is expected toincrease with improved recovery from the larger diamond plant and a larger andmore representative sample. The program is also focused on delineating and proving mineralization inthe current floodplain deposits (known as "flats") that host more extensivepotentially bulk mineable gravel deposits and a suite of distinctdiamondiferous terraces within the Kasai River valley above the present rivercourse. Remote sensing data is being utilized to map these areas. This will befollowed by shallow seismic geophysical surveys to map the bedrock topographyhosting potential diamond deposits. Based on preliminary exploration results and historical data, five highinterest and readily accessible targets area have been identified. These areashave the potential to host approximately 300,000 carats at grades ofapproximately 0.5 carats per cubic meter. The five target areas represent lessthan 5 percent of SouthernEra's total alluvial project area. The 2006exploration program is geared primarily towards bringing these five highpriority targets into more confident resource categories with a view tocommencing commercial production in 2007. Mr. Uwe Naeher, Professional Geologist, is the qualified person, underNI 43-101, responsible for the technical information in this release. Some statements contained in this news release are forward-looking and,therefore, involve uncertainties or risks that could cause actual results todiffer materially. Such forward-looking statements include comments regardingexploration work. Actual results could differ materially from thoseanticipated. The Company disclaims any obligation to update forward-lookingstatements. For further information: SouthernEra Diamonds Inc., Alasdair MacPhee,President and CEO or Howard Bird, Senior Vice President Exploration or SharonAllan, Investor Relations, Telephone: (416) 359-9282, Fax: (416) 359-9141,E-mail: inbox(at)southernera.com, www.southernera.com; London, 4C-Burvale,Carina Corbett, Director, Telephone: ++44 (0) 207-907-4761,Fax: ++44 (0) 207-907-4769, Email: Corbett(at)4c-burvale.co.uk (SRE SDM.) ENDSOUTHERNERA DIAMONDS INCRelated Shares:
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