DiamondWorks Ltd. Returns to
Sierra Leone
13:43 GMT-04:00 Friday, June 29, 2001
VANCOUVER, BRITISH COLUMBIA--DiamondWorks
Ltd. (the "Company") is pleased to announce that it has begun
to reactivate its operations in Sierra Leone. On the basis of
successful meetings by senior operating management with the
Ministries of Mineral Resources and Finance of Sierra Leone,
the Company has begun to re-establish its logistical base in
the city of Freetown and to reassess equipment and start-up
requirements for its Koidu kimberlite diamond project. The
meetings with the Ministers and other officials served to
re-confirm the ownership and title of the Company's property
interests and to demonstrate the support of the Government
for the early recommencement of the Company's operations.
The Company holds a 60% interest in a 25-year renewable,
diamond exploration and mining lease which covers the 400
hectare Koidu Property. As previously disclosed, the Koidu
Property hosts two diamond pipes with proven and probable
reserves estimated at 7.58 million tonnes at a grade of 0.352
carats per tonne (2.67 million carats).
In addition to the Koidu Property, the Company holds two
separate diamond exploration licenses on the Sewa River in
the eastern province of Sierra Leone. The properties
comprise an aggregate 2,900 hectares and cover
approximately 27 kilometers of river channel, terraces and
flats on the Sewa River that are prospective for alluvial
diamonds. As previously disclosed, these concessions host
reserves estimated to contain 1.7 million carats of alluvial
diamonds.
The Company also holds a 6,800 hectare prospecting license
(the Matemu Property) for kimberlite diamonds located in
southeastern Sierra Leone.
The Company plans to initially focus its efforts in establishing
production from the Koidu mine, subject to the commercial
and security considerations appropriate to a major mining
project in Sierra Leone. The potential of the Company's other
interests will be assessed as time and financial resources
permit.
DiamondWorks Ltd. is a Canadian company listed on the
Toronto Stock Exchange and holds interests in extensive
diamond projects in Sierra Leone, South Africa and Angola.
The Company has recently been restructured and new
management has been appointed whose main objective is to
create a profitable mining company focused on the
development and production of the Company's diamond
assets.
ON BEHALF OF THE BOARD OF DIRECTORS OF
DIAMONDWORKS LTD.
J. Scott Drever, Director |
