6th Apr 2005 14:13
SouthernEra's Democratic Republic of Congo (DRC) Kimberlite Program Returns Positive Kimberlitic Sampling Results Alluvial diamond evaluation program commences Shares Issued and Outstanding: 100,566,601 TSX: SDM AIM: SRE TORONTO, April 6 /CNW/ - SouthernEra Diamonds Inc. ("the Company") (TSX:SDM, AIM: SRE) announced today that ground follow-up of kimberlite targetsgenerated from recent airborne geophysics is returning positive kimberliticsampling results. Additionally, the Company announced that it has commencedalluvial diamond testing within the first of its seven separate alluvialprojects in the Democratic Republic of the Congo (DRC). Since 2003, SouthernEra has secured a large and outstanding portfolio ofexclusive diamond exploration permits covering 13,614 square kilometerslocated within the diamond-rich Kasai Provinces of the DRC. The majority ofthe permits lie within a 'kimberlite emplacement corridor', which is underlainby Archean basement granite-gneiss of the Congo Craton, and extends from theDRC southwest into the renowned diamond producing Lunda Norte Province inneighboring Angola, which hosts the massive 23.2 million carat Camafucakimberlite complex in which the Company has an 18 percent free-carriedinterest. This corridor is considered the world's most prospective and largestnew diamond exploration opportunity. The known kimberlites in this region areof exceptional size and grade, and the potential for new diamondiferouskimberlite discoveries in this region of the DRC is rated very high. Last October, SouthernEra completed over 43,000 line-kilometres ofairborne magnetic and radiometric geophysical surveys under contract withFugro Airborne Surveys (Pty) Ltd. The surveys covered 21 of SouthernEra's41 exclusive diamond exploration permits in the DRC. These 21 permitscollectively comprise three separate primary kimberlite project areas; knownas the Kito, Nyota and Akiki blocks. These three project areas are focused inthe diamond-rich Kasai-Oriental Province, which has produced two of the 'top-ten' largest gem quality diamonds in the world and in the mid-1980's wasproducing up to 20 million carats of diamonds per year. The geophysical data was integrated and merged with composites fromsatellite imagery and has to date generated 34 high priority targets andnumerous moderate priority targets which, from their magnetic signature,resemble kimberlite pipes. The diameter of each of these bodies is estimatedfrom 170 to 750 meters. Of the 34 high priority targets about half are classicdipolar anomalies. Independently, the selected targets have been compared with detailedhistorical data relating to diamond finds and production recorded by companiesproducing diamonds before the DRC's independence in the 1960's, as well aswith current informal digging activities. This comparison has revealed theproximity of some the airborne targets to known alluvial reserves, indicatingthat they could potentially be the source rocks for the alluvial diamondoccurrences. In the Kito Block, which is centered on a region where diamonds are bothof high quality and value, a number of the nineteen identified targets arealso encouragingly close to areas of known alluvial diamond production. TheNyota Block has yielded two out of eight identified targets, which coincidealmost exactly with proven high grade alluvial reserves (up to 29 carats percubic meter), and three more targets appear very well positioned as potentialsources of the alluvial diamonds. Informal artisinal diamond digging iswidespread throughout this area, with one target located less than 200 metersupslope of current colluvial workings. Within the Akiki Block, stream samplescollected by SouthernEra have returned kimberlitic indicator minerals(including several unique suites of kimberlitic ilmenite) immediatelydownstream of the seven identified airborne targets. The regional and detailed site-specific stream and soil sample follow-upof the aeromagnetic survey targets is progressing as scheduled. Groundgeophysical surveys to further define high interest airborne targets are setto commence. In addition to the above primary kimberlite projects, SouthernEra hasalso secured high interest alluvial diamond permits within theTshikapa/Kasai/Luebo alluvial diamond field in the Kasai-Occidental Province,and also within a second major alluvial diamond field in the Kasai-OrientalProvince (actually located within the Nyota project area). These permit areascollectively constitute seven separate major alluvial projects. Following areview of the alluvial diamond potential within these permit areas, aSouthernEra exploration base has been established in the town of Tshikapa,which will become the center of feasibility studies into SouthernEra'salluvial projects in the Kasai Occidental Province. The Belgian mining company, ForminiĬre, extracted approximately14.5 million carats from the Tshikapa region up until 1955 mainly frommechanized mining of terrace deposits. This area has historically produced thehighest value diamonds reported in the DRC. Current alluvial active channeldredging operations occur both upstream and downstream outside of theSouthernEra permits, as well as active artisinal terrace mining. SouthernEra'sdiamond recovery equipment has been transported to this region and testing ofthe first of the seven separate alluvial diamond projects has commenced withencouraging early results. Following the assembly and commissioning of agravel suction dredge and recovery plant during the next few weeks, evaluationof the active river channels will commence to determine the nature of thediamond deposits and best mining method. In addition to the active river channels, significant diamond potentialoccurs within large alluvial flats within the permit areas. A systematicseismic geophysical program will commence within weeks to define the bedrocktopography beneath the alluvial flats in order to establish the locations ofpaleochannels which are expected to host high grade concentrations of gravelwithin the alluvial flats system. Following the completion of the geophysicalsurveys and interpretation of the results selected areas will be evaluated byBanka drilling, pitting and bulk sampling. The potential of the alluvialterraces in the project area will be investigated later this year. In June 2003 the DRC Mining Registry (Geological Survey) was opened forthe first time under the new World Bank-sponsored Mining Code (Law 007/2002).The new Mining Code has encouraged renewed interest on the part of diamondmining and exploration companies in the DRC, including the major producers DeBeers and BHP-Billiton. The implementation of the new Mining Code, led by theMinistry of Mines and the Mining Registry, has been carried out in anencouragingly efficient and transparent manner. In the case of diamondexploration, the Mining Code gives permit holders exclusive rights for aperiod of four years, renewable for two additional two-year periods. Ondiscovery of an economic deposit, the holder can automatically apply for amining permit. Mr. Uwe Naeher, Professional Geologist, is the qualified person under NI43-101 responsible for the technical information in this release. All streamand soil samples collected for the recovery of kimberlitic indicator mineralsare processed at SouthernEra's in-house diamond laboratory located inPolokwane, South Africa. The DRC is one of five countries in which SouthernEra is engaged inadvanced diamond exploration. Others include Canada, South Africa, Gabon, andAustralia. This represents the fourth most active global diamond explorationprogram after the majors DeBeers, BHPB and Rio Tinto. The Company alsooperates the Klipspringer Diamond Mine in South Africa and maintains an18 percent free-carried interest in the Camafuca Diamond Project in Angola. 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.: Howard Bird, VicePresident Exploration, or Sharon Allan, Investor Relations, Telephone:(416) 359-9282, Fax: (416) 359-9141, e-mail: inbox(at)southernera.com (SDM. SRE) ENDSOUTHERNERA DIAMONDS INCRelated Shares:
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