24th May 2006 14:06
SouthernEra increases land holdings in the Democratic Republic of Congo by 21% to total over 16,000 km2 Shares issued and outstanding: 159,428,601 TSX: SDM AIM: SRE TORONTO and LONDON, May 24 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM;AIM: SRE) is pleased to announce today that the Company has expanded its landposition in the Democratic Republic of Congo ("DRC"). The Company has signedan agreement with Nyumba Ya Akiba SPRL, a local Congolese company, acquiringan immediate 74% undivided interest in eight exploration permits covering2,744 km2 of diamond prospective ground in the Kabinda area, Kasai OrientalProvince. This key acquisition will bring the total land holdings that theCompany controls including the BHP Billiton joint venture to over 16,000 km2. Commenting on the acquisition Alasdair MacPhee, President and CEO said"The DRC will play an important role in the growth of SouthernEra. It is ahighly attractive diamond exploration target country as no systematicexploration has taken place there in the past 40 years yet it continues to bea high volume producer. Our agreement with Nyumba Ya Akiba strengthens ourposition in the DRC and increases the probability of success". SouthernEra's immediate plans on this new ground include the completionof a detailed reconnaissance stream sampling program followed by anaeromagnetic survey over anomalous areas with the aim of locating thekimberlite sources to local alluvial diamonds. Mustafa Rawji, the CEO of Nyumba Ya Akiba SPRL stated "SouthernEra'sextensive exploration program demonstrates their commitment to the DRC, andprovides Nyumba Ya Akiba with a strategic partner in exploring the highlyprospective Kabinda and Lubao districts". Nyumba Ya Akiba SPRL, holdsinterests in gold and diamond properties in the DRC. Regarded as the world's most prospective and largest new diamondexploration opportunity, a "kimberlite emplacement corridor" extends from therenowned diamond-producing Lunda Norte Province in neighboring Angola,northeast into the DRC. In addition to these newly acquired interests, most ofSouthernEra's permits lie within this corridor which has yet to be fullyexplored as only 11 kimberlites have been identified to date as opposed toover 700 in the neighbouring Angolan section. SouthernEra Diamonds is one of Canada's fully integrated diamondcompanies with extensive kimberlite diamond exploration and alluvial programsin the DRC as well as other countries including Canada, Gabon, Zimbabwe andSouth Africa. The Company also holds the Klipspringer Diamond Mine in SouthAfrica 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.: Alasdair MacPhee,President and CEO, 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)4c-burvale.co.uk/ (SRE SDM.)ENDSOUTHERNERA DIAMONDS INCRelated Shares:
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