18th Jan 2006 17:15
Drilling commences on the DO-27 kimberlite, Northwest Territories, Canada Shares issued and outstanding: 128,313,101 TSX: SDM AIM: SRE TORONTO, ON and LONDON, UK, Jan. 18 /CNW/ - SouthernEra Diamonds Inc.(TSX: SDM; AIM: SRE) has received the following report from Peregrine DiamondsLtd, operating partner of the WO Project Joint Venture, with regards to thecurrent and upcoming 2006 programs. DO-27 Kimberlite ---------------- Core drilling has commenced at the DO-27 kimberlite pipe. The DO-27 pipeis part of the WO Diamond Project and is located 23 kilometres south-east ofthe Diavik(TM) diamond mine, N.W.T., Canada. The first of two core drill rigs,operated by Connors Drilling, began drilling on January 12th, 2006 with theobjective of collecting geological and geotechnical information in advance oflarge diameter, bulk sample drilling, which is scheduled to commence lateJanuary/early February, 2006. The WO Diamond Project comprises a total of 15,107 hectares and currentlycontains nine known kimberlite pipes, the largest of which is DO-27 whichcovers an area in excess of 9 hectares. A 151 tonne, mini-bulk samplingprogram conducted by Peregrine at DO-27 during 2005, revealed an average gradeof 0.98 carats per tonne from five of six holes drilled (sample PDL-1). Asixth hole returned an average grade of 0.70 carats per tonne (sample PDL-2). As reported on August 29th, 2005 by Peregrine, these grades comparefavorably with published data for kimberlite pipes at BHP Billiton's Ekati(TM)Diamond Mine. The Annual Information Form of Dia Met Minerals, dated June 14,2000, reported, as part of the feasibility study, an average grade for five ofthe Ekati(TM) pipes of 1.09 carats per tonne. The average value was reportedas US$84 per carat. Three independent valuations on the diamonds collected from the 2005 mini-bulk sample returned values of US$59 to $78 per carat for sample PDL-1.The average values combining both PDL-1 and PDL-2 ranged from US$53 to $67 percarat with the highest value diamond being a 1.85 carat, clean, whiteoctahedron, valued at US$1,591 to $2,063. The valuations were actual primaryproducer sales values on the day of the valuation, not modelled valuations. Asbulk sample sizes increase, there may be a correlation with higher averagediamond values as a proportionally larger population of larger, higher valuediamonds may be recovered. Modelling of the diamond size distribution anddiamond values attempts to predict average diamond value in a larger sample. The bulk sample that Peregrine will collect this winter will be extractedfrom DO-27 using two, 24" diameter, reverse circulation (RC) drill rigsoperated by Encore Drilling of Edmonton. The sample will be processed at BHPBilliton's Ekati(TM) Diamond Mine Test Plant starting the second quarter of2006. DO-18 Kimberlite ---------------- In addition to the bulk sampling program which has commenced on DO-27,Peregrine is awaiting micro-diamond results from seven core holes drilledduring the summer of 2005 on the nearby DO-18 kimberlite. DO-18 is in excessof 3 hectares in size, and located approximately 700 metres north of DO-27.Previous drilling at DO-18 returned encouraging micro-diamond results as highas 1.41 carats per tonne over 242 metres. The micro-diamond analyses from theholes drilled in 2005 are being performed by Saskatchewan Research Council Geo-analytical Laboratories in Saskatoon, and results are expected inFebruary, 2006. In the event that results are encouraging, a mini-bulksampling program will be conducted at DO-18 during the summer of 2006. Previous drilling and the results of a Falcon(TM) Gravity Surveypreviously flown by BHP Billiton in 2001 over DO-27 and DO-18 suggest that athird pipe may be located between the DO-18 and DO-27 kimberlites. Furthercore drilling is planned this year in the area between the DO-27 and DO-18kimberlites to test this hypothesis. Drilling is also planned on a number ofother high-priority targets within the WO Diamond Project area that havecoincident geophysical and geochemical anomalies. Dr. Jennifer Pell, P.Geo., of Peregrine Diamonds is the Qualified Personwho is responsible for the WO Joint Venture program. SouthernEra holds a 4.9% interest in the WO Diamond Project. SouthernEra Diamonds is one of Canada's largest fully integrated diamondcompanies with extensive diamond exploration in five countries includingCanada, Gabon, the DRC, Zimbabwe and South Africa. This represents one of themost active global diamond exploration programs after the majors DeBeers, BHPBand Rio Tinto. The Company also operates the Klipspringer Diamond Mine inSouth Africa and maintains an 18 percent free-carried interest in the CamafucaDiamond 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, SeniorVice President Exploration, or Sharon Allan, 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)4cburvale.co.uk (SDM. SRE) ENDSOUTHERNERA DIAMONDS INCRelated Shares:
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