The patient has a heartbeat,...
DiamondWorks evaluates Koidu site; cleanup begins
DiamondWorks Ltd (2) DMW
Shares issued 244,879,016 Jan 25 close $0.45
Mon 28 Jan 2002 News Release
Mr. Tony Teixeira reports
DIAMONDWORKS LTD. REPORTS OPERATIONAL STATUS IN SIERRA LEONE
The city of Lungi in Sierra Leone was the site of a historical event on
Friday, Jan. 18, 2002, as several West African leaders and dignitaries as
well as representatives of the United Nations and the international
community, marked the formal end of the civil war in Sierra Leone. The
management of DiamondWorks believes that this important step in the peace
process has removed the remaining political obstacles to the
re-establishment of the company's operations in Sierra Leone after an
absence of nearly five years.
The company, through its wholly owned subsidiary Branch Energy Limited,
holds a 60-per-cent interest in a 25-year renewable, diamond exploration
and mining lease covering the 400-hectare Koidu property in the Kono
district which hosts two diamond pipes with proven and probable reserves.
The company holds two separate diamond exploration licences on the Sewa
River in the eastern province of Sierra Leone which cover approximately 27
kilometres of river channel, terraces and flats on the Sewa River that are
prospective for alluvial diamonds. The company also holds the 6,800-hectare
Matemu prospecting licence for kimberlite diamonds located in southeastern
Sierra Leone.
During the week of Jan. 14, 2002, management conducted a visit to the Koidu
project with the active co-operation of the Sierra Leone government and the
civilian authorities of the Kono district. The purpose of the visit was to
carry out a site assessment of the processing plant and mining equipment.
The diamond processing plant is damaged but repairable. Much of the mining
and earthmoving equipment however, is beyond repair and can only be used,
in some cases, for spare parts. The No. 2 kimberlite pipe is flooded to the
surface and will have to be dewatered. The smaller No. 1 kimberlite pipe is
not flooded to the same extent; nor is the fissure feature which runs
between the pipes. The company is in the process of evaluating the cost of
replacement equipment and effecting repairs to the processing plant.
Initial project working capital requirements are also being estimated.
As reported previously, the company has re-established its office in
Freetown and has reconfirmed with the Ministry of Mineral Resources and
other relevant government departments, the company's ownership and title to
its property interests in Sierra Leone. The company has also recently
re-established its contacts with the Kono Paramount Chief in whose
jurisdiction the project is situated, as well as with representatives of
the Kono people. A skeleton staff has been installed on site at the Koidu
kimberlite project to begin cleanup and maintenance of the plant site, and
to establish security. Preliminary work has been commenced from the
Freetown office to evaluate the potential of the Sewa alluvial project.
Recent meetings with the various government ministers, local officials and
representatives have served to demonstrate the support of the government
for the early recommencement of the company's operations. DiamondWorks,
through its subsidiary Branch Energy Limited, plans to initially focus its
efforts in establishing production from the Koidu mine and will assess the
potential of the company's other interests in Sierra Leone as time and
financial resources permit. |
