8th Aug 2005 07:00
Petra Diamonds Ld08 August 2005 For release 8 August 2005 Petra Diamonds Limited Alto Cuilo - major new kimberlitic anomaly discovered Petra Diamonds Limited ("Petra" or "the Company"), the AIM-quoted and ASX-listeddiamond mining group, announces the discovery of a major new 125 hectarekimberlitic anomaly on the Alto Cuilo project in north eastern Angola. Theanomaly is larger in surface area than the existing 115 million tonne (109hectare) deposit at Alto Cuilo. An additional 26 hectare kimberlitic anomaly hasalso been identified. Aeromagnetic survey The 125 hectare anomaly was identified by a low level Midas helicopter surveythat commenced in July and has just been completed. Petra had previously beenaware of there being a small anomaly at this target and had drilled two holesconfirming its kimberlitic nature but, since the anomaly is under sand cover andwith a low magnetic signature, the Company was not aware of its magnitude as nowdefined by the helicopter survey. This anomaly is larger in surface area thanthe existing 115 million tonne (109 hectare) deposit at Alto Cuilo and is within500 metres of it. The 40 tonne sample, which yielded a grade of 47 carats perhundred tonnes (as announced by the Company on 8 September 2004), was taken fromoutcrops at the periphery of this new anomaly where rivers have incised throughthe sand cover. At this stage Petra cannot yet confirm whether these outcropsare part of this major new anomaly. The helicopter survey also defined the size of a third major anomaly at AltoCuilo (in close proximity to the two noted above) as 26 hectares, which is againsubstantially larger than previously thought. A magnetic image of these anomalies can be viewed at www.petradiamonds.com. The helicopter survey entailed the flying of 13,183 line kilometres, coveringapproximately 700km(2) (26%) of the total concession area. Initial results showsignificantly more anomalies than the original 1998 aeromagnetic survey, due tothe use of twin sensors at closer line spacing and lower flying height. It isanticipated that with completion of the necessary processing work the number ofanomalies will be substantially higher than the 68 identified in the 1998aeromagnetic survey and detailed results are expected to be available by the endof September. Drilling Drilling continues and to date 83 holes, totaling 10,926 metres, have beencompleted. 68% of these holes have intersected kimberlitic material. Analysisof barren holes using the new data has shown that the siting of some of thepreviously drilled holes was not optimal. Some of these holes have already beenre-drilled and have now intersected kimberlitic material. To date all theanomalies that have been drilled have intersected kimberlitic material. A second core rig is currently being mobilized due to the high number ofmagnetic anomalies that require further investigation. A third drill, capable ofdrilling large diameter holes, is still scheduled to arrive in the first quarterof 2006. Alluvial sample analysis Work continues on the alluvials along the Luangue River, with 77 pits havingbeen completed to date. Some of these pits have intersected good gravels, whilstothers were poor or had to be abandoned due either to water or thick overburden.A trench sample of 735 tonnes was treated through the diamond recovery plant,yielding 104.63 carats for an in situ grade of 0.26 carats per cubic metre. Theaverage stone size was 0.28 carats with two gem quality stones of 2.88 and 1.88carats being recovered. A second trench sample is currently being processed fromwhich a good 5.6 carat stone has already been recovered. Work on the alluvialexploration programme will continue. Adonis Pouroulis, Petra's Chairman, commented, "The discovery of this newanomaly, which has a larger surface area than the 115 million tonne deposit wehave previously delineated, is further confirmation of the true potential ofAlto Cuilo. This is a very exciting project for all involved. This is furtherevidence that Petra's strategy of building a mid-tier diamond group by creatinga solid exploration base combined with successful income producing mines is ontrack." Clink on the link below to view the major new 125 hectare anomaly identified atAlto Cuilo: http://www.rns-pdf.londonstockexchange.com/rns/8264p_pdf-2005-8-7.pdf Ends For further information, please contact: Petra Diamonds, South Africa Parkgreen Communications, LondonAdonis Pouroulis/Johan Dippenaar Justine Howarth / Cathy MalinsTel +27 11 467 6710 Tel +44 20 7493 3713 John Baillie, Perth Field PR, AdelaideTel +61 8 9381 8888 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. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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