1st Mar 2006 15:06
SouthernEra Diamonds - Positive developments in all key exploration projects worldwide Shares issued and outstanding: 128,343,101 TSX: SDM AIM: SRE TORONTO and LONDON, March 1 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM,AIM: SRE;) today provided an update of the Company's worldwide diamondexploration activities. SouthernEra is a leading fully integratedinternational diamond company and now has one of the world's largest diamondexploration programs after BHP Billiton, De Beers and Rio Tinto. Against a market backdrop where many existing diamond mines are coming tothe end of their useful production lives and where there is increasing globaldemand for diamonds, particularly from emerging economies in Asia and the FarEast, the discovery of new high quality diamond mines is key. SouthernEraDiamonds has intensive exploration programs under way in five of the world'smost prospective diamond producing regions - Canada, Democratic Republic ofCongo (DRC), Gabon, Zimbabweand South Africa. The Company has proven successin these types of undertaking having built and operated two successful diamondmines - Klipspringer and Marsfontein in South Africa. Alasdair MacPhee, President and CEO of SouthernEra, said, "We havereached a key moment in the development of our business where we have nearterm production goals with our Camafuca mine in Angola and we are proceedingwith alluvial evaluation in the DRC. In areas such as the DRC, Canada andGabon, we are making encouraging progress towards our objective of discoveringmajor economic kimberlites. As a result 2006 promises to be an exciting yearfor the company." In each of its key markets, the Company has made exciting progress in thelast year: Canada Since 1992 SouthernEra, together with its partners, has discovered over50 kimberlite pipes in the Northwest Territories (NWT). Today SouthernErastill has one of the largest active programs focused on two areas: the Lac deGras Kimberlite Field, host to Canada's two existing diamond mines Diavik(TM)and Ekati(TM) and, second, the Southern Kimberlite Field that hosts De Beers'Snap Lakeand Gahcho Kue diamond deposits. Most of the projects in these regions are at the advanced explorationstage with a bulk sampling program currently testing the DO-27 kimberlite pipeon the WO Project and with up-coming exploration drill testing programs to beconducted during the second quarter 2006 on at least three projects, YambaLake, Crown East and the Kidme Project. Democratic Republic of the Congo (DRC) Since 2003, with the advent of the new World Bank-sponsored Mining Codeand an investor friendly environment in the Democratic Republic of Congo("DRC"), SouthernEra has secured an outstanding portfolio of 44 exclusivediamond exploration permits covering more than 13,000 square km in thediamond-rich Kasai Provinces, which has produced two of the 'top-ten' largestgem-quality diamonds in the world and is producing up to 20 million carats ofdiamonds per year. Most of the permits lie in a 'kimberlite emplacementcorridor' that extends from the renowned diamond-producing Lunda NorteProvince in neighbouring Angola, northeast into the DRC. The section of thiscorridor in the DRC has yet to be fully explored with only 11 kimberlitesidentified as opposed to over 700 in the Angolan section. This corridor isregarded as the world's most prospective and largest new diamond explorationopportunity. In a joint venture formed in October 2005 with BHP Billiton ("BHPB") on39 of SouthernEra's 44 permits, exploration has commenced for primary diamonddeposits. Preliminary sampling results have returned kimberlitic indicatorminerals from numerous samples. Some of the samples contain diamonds. Anadditional aeromagnetic survey, covering the remaining permit areas isscheduled for mid-2006 and a core drilling rig is currently being sourced inCanada to be shipped to the DRC to test selected targets in 2006. SouthernEra has also secured high interest alluvial diamond permitswithin the Tshikapa/ Kasai/Luebo alluvial diamond field in the Kasai-Occidental Province, and also within a second major alluvial diamond field inthe Kasai-Oriental Province. Testing in these regions is at an advanced stagewith the objective of defining and developing a bulk mineable diamondoperation within the alluvial flat system. This aggressive alluvial-diamondtesting program will continue throughout 2006 with a view to commencing toproduction towards the end of 2007. SouthernEra now has a fully establishedexploration base in Tshikapa which includes a diamond recovery plant. Gabon SouthernEra has four diamond exploration permits in Gabon: the 100percent owned Kango and Sud projects, the 95 percent owned M'bigou Project,and the 60 percent owned and operated Makongonio Project in Joint Venture withthe Gabonese mining company Cogemat (35%) and Geoscan (5%). SouthernEra hasdiscovered 41 kimberlitic bodies in Gabon to date. The Company's exploration program during 2006 will focus on evaluatingthe economic diamond potential of the known kimberlitic bodies and to continueto follow up on positive kimberlitic indicator mineral stream sample resultsthat suggest additional bodies are to be discovered. Kimberlitic rock samplesfrom six separate bodies are currently being tested for micro-diamonds at SGSLakefield's laboratory in Canada. The results are anticipated in the 2ndQuarter of 2006. Samples from a further 8 separate bodies are en route toCanada for micro-diamond testing. In addition, numerous 10 to 50 tonne mini-bulk samples will be collected from selected high-interest bodies for macro-diamond testing. The results from these will be reported on as they becomeavailable during 2006. Zimbabwe SouthernEra is working on the Tsholotsho project area which isapproximately 14,000 square km in size and is located in the same kimberliteemplacement track as that of DeBeers' Orapa diamond mine in neighbouringBotswana. SouthernEra has the potential to earn 100% interest in the project.Systematic reconnaissance soil-sampling started in 2005, and has yieldedpositive, high interest kimberlitic indicator mineral results. Consequently,the kimberlite exploration program is being fast-tracked in 2006 with follow-up sampling and geophysical surveys. South Africa An exploration program in the Limpopo Province has been very successful,with the discovery of numerous, confirmed, kimberlitic indicator mineralanomalies recovered along the same structural lineament that controlled theemplacement of SouthernEra's well known Klipspringer and Marsfontein diamondmine kimberlite cluster. Exploration activity on SouthernEra's Hope Project,which covers 1,110 ha, has identified 2 significant kimberlitic indicatormineral anomalies - one of which is approximately 4 ha in size. Testing willcontinue in 2006. SouthernEra is expecting the granting of additional permitswithin another proximal area which is considered to have similar highpotential. Mr. Uwe Naeher, Professional Geologist, is the qualified person, under NI43-101, 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. Notes to Editors Active projects - further details CANADA Within the highly diamond prospective Lac de Gras region of Canada, theCompany's program includes: The Yamba Lake Project, where SouthernEra can earn up to a 65% interestand are the operators, a total of 8 diamondiferous kimberlite bodies have beendiscovered to date. During 2005 a total of 149.02 line-km of magnetic and HLEMground geophysical surveys were completed over 26 airborne targets. Inaddition, a total of 128 till samples were collected to further define fourhigh interest kimberlitic indicator mineral bearing areas. Five targets havebeen selected for drill testing during the second quarter 2006. Within the Lac de Gras X-Claims project seven kimberlite pipes have beendiscovered to date, of which five are diamondiferous. The primary kimberlitesources to kimberlitic indicator mineral trains defined on the property havenot yet been discovered. The Company will conduct a high resolution (25m linespaced) magnetometer survey of the entire claim block, particularly focusingon the Diavik(TM) diamond mine kimberlite emplacement structural corridorduring March using a sled mounted magnetometer system. Targets generated fromthe survey will be drill tested during the second quarter 2006. SouthernEra isthe operator and its interest in the Lac de Gras X-Claims is 60 percent. The WO Project, where SouthernEra has a 4.9% interest, currently containsnine known kimberlite pipes, the largest of which is DO-27 which covers anarea in excess of 9 hectares. As reported previously a 151 tonne, mini-bulksampling program at DO-27 during 2005, revealed an average grade of 0.98carats per tonne from five of six holes drilled (sample PDL-1). A sixth holereturned an average grade of 0.70 carats per tonne (sample PDL-2). Based onthe encouraging diamond results a follow-up bulk sampling program commenced onJanuary 12th 2006 and is targeted to extract an approximate 3000 carat diamondparcel to further define the pipes diamond grade and dollar per carat value.The bulk sample will be extracted by mid-April, 2006 via large diameter (24")RC drilling and processed during the second quarter at the Test Sample Plantat BHP Billiton's Ekati(TM) Diamond Mine located 50km to the north west of DO-27. More information regarding the bulk sampling program will be released asthe program progresses. In addition to the bulk sampling program at DO-27, the partners areawaiting micro-diamond results from seven core holes drilled during the summerof 2005 on the plus 3 hectares in size DO-18 kimberlite pipe locatedapproximately 700 metres to the north of DO-27. The Monument Project (SouthernEra 22.11% interest) hosts thediamondiferous DD-17, DD-39 and DD-42 kimberlite pipes and one kimberlite dyke(DD2002) located within the same structural trend that controlled theemplacement of the economic pipes at the Ekati(TM) mine. In 2005 a thoroughreview of the geochemical and geophysical data from 1994 was completed whichled to the decision to re-evaluate the DD-42 and DD-17 kimberlites. Theprogram included 94.02 line-km of detailed magnetic and HLEM groundgeophysical surveys and 11 holes (1292.8 m) of diamond drilling. The programcollected 1004 kg of kimberlite from the DD-17 pipe and 128 kg from the DD-42kimberlite. Approximately 500 kilograms of kimberlite will be tested for micro-diamonds. Further drill testing of the DD-39 kimberlite and several targetswest of DD-17 is being considered by the partners for the third quarter of2006. Within the new Crown East Project (SouthernEra 100%) the company staked25 claims during 2005 located about 30km to the east and northeast of theDiavik(TM) mine to cover high-interest airborne geophysical kimberlite pipelook-alike targets. Exploration will commence in April and will include groundgeophysics and drilling. On the Southern Kimberlite Field, SouthernEra's program includes: The Kidme Project (SDM 60%) is operated by SouthernEra and is located tothe south and within the highly prospective structural kimberlite emplacementtrend of the De Beers/Mountain Province Gahcho Kue diamond deposit. The 2005exploration program consisted of 79.85 line km of ground geophysics thatincluded magnetic, HLEM and gravity surveys over 18 airborne targets. Drilltesting of high priority targets is scheduled for April 2006. The Back Lake Project (SDM 60.4%), operated by SouthernEra, has producedone diamondiferous kimberlite discovery and the Company is focused ondiscovering the kimberlite sources to the North Margaret Lake and South-Onekimberlitic indicator mineral trains. In 2005 one geophysical target was drilltested with negative results. The geophysical program included 76.59 line-kmof magnetic and HLEM ground geophysical surveying. Sampling included thecollection of 85 till samples and 726 geochemical samples for MMI (MobileMetal Ion Method) analysis. Additional ground geophysics and a drill program,if warranted, are planned for the second and third quarter 2006. In the Superior Craton in Ontario, SouthernEra will continue a rigorousexploration program in 2006. SouthernEra initiated two new diamond interestproject areas in 2005, the 100% owned Centenary and Trillion Projects.Airborne targets were chosen from government high-resolution airbornegeophysical surveys that have been interpreted by SouthernEra with proprietarymethods. Within the Kirkland Lake-Temagami diamondiferous kimberlite emplacementcorridor in eastern central Ontario, 52 claims have been staked as part of theCentenary Project. Regional and target sampling was conducted in the summer of2005 to complement the existing Ontario government sampling in the area.Ground geophysics was completed on 33 targets last spring and summer, and awinter program completed in February 2006 covered 10 of the remaining targets.Positive targets will be selected for Mobile Metal Ion geochemical samplingthis second quarter, the results of which will aid in the selection of drillready targets for a follow-up core drilling program. Within the Trillion Project SouthernEra has recently staked 46 claimslocated to the west of the De Beers Victor diamond deposit in north westernOntario. To expedite the progress of the program, sediment sampling wasconducted simultaneous to the claim staking and kimberlitic indicator mineralpicking results from samples processed at SouthernEra's in-house laboratoryare expected in the second quarter 2006. Winter ground geophysics, began inlate February and will initially cover 22 airborne targets. Follow-up sedimentsampling in conjunction with additional ground geophysics over the remainingtargets will be completed this summer to prioritize targets for drilling. DRC - Alluvial Activities SouthernEra has 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. In the Tshikapa area, SouthernEra has 70 to 100% interests in over30km of diamond mineralized river frontage. The Belgium mining company,Forminiere, mined approximately 14 million carats from the region up to 1955.SouthernEra commenced testing both the active river channel and alluvial flatsystem (floodplain) diamond potential in 2005. An 8 inch suction dredge testsampled the active river channel with numerous samples returning encouragingdiamond grades previously reported on in 2005. During 2005 only the 2 to 4 mmscreen size fraction gravel samples were tested for diamonds with one samplereturning 164 diamonds from the 2 to 4 mm screen size fraction for a totalweight of 20.35 carats recovered from 2.89 tonnes. A recently commissioned X-ray "Flow-sort" is on site and is now treating the coarse 4 to 16 mm samplefraction range and is also reducing the back-log of gravel samples to betreated. The active river program is progressing to define high interestdiamond bearing gravel deposits. A seismic geophysical survey is continuing totest the 'alluvial flats' which will be followed by drill testing and pitsample testing for diamonds. A drill to test the alluvial flat overburden andpotential diamond bearing gravel thicknesses is en route to the DRC. GABON Since the onset of exploration in Gabon in 1999, SouthernEra's regionalstream sampling activities revealed kimberlitic indicator mineral anomalieswhich have resulted in the identification of geographically distinct diamondinterest regions. SouthernEra initially identified the Makongonio Project area in southernGabon based on the area's past production of the highest value and largestalluvial diamonds in Gabon. In 2004, the likely sources to the high valueMakongonio alluvial diamonds were discovered. Over the past 2 yearsSouthernEra has discovered 14 kimberlitic bodies within this permit areaincluding the first known pipe (approximately 1 hectare in size) in Gabon.Some of the 'dyke-like' bodies have widths up to 21m, and sit withinkimberlitic structural emplacement corridors up to 15km in length. Asannounced previously, 2 out of the 2 tested kimberlitic bodies proved to bediamond bearing. SouthernEra's exploration program in Gabon during 2006 will focus onevaluating the economic diamond potential of the known kimberlitic bodies andto continue to follow-up on positive kimberlitic indicator mineral streamsample results that suggest additional bodies are to be discovered.Kimberlitic rock samples from six separate bodies are currently being testedfor micro-diamonds at SGS Lakefield's laboratory in Canada. A further 8separate bodies are en route to Canada for micro-diamond testing. Two 50 tonnebulk samples have already been collected and stored from the Mak-003 and Mak-004 kimberlites. A suitable diamond recovery plant to process the bulk sampleswas assembled in South Africa and is en route to Gabon. The plantinfrastructure is currently being constructed at camp and sample processing isexpected to commence during April/May. 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: [email protected], www.southernera.com; London: 4C-Burvale,Carina Corbett, Director, Telephone: ++44 (0) 207-907-4761, Fax:++44 (0) 207-907-4769, Email: [email protected] (SDM.) ENDSOUTHERNERA DIAMONDS INCRelated Shares:
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