SouthernEra's Democratic Republic of Congo (DRC) Kimberlite Program Returns Positive Kimberlitic Sampling Results
Wednesday April 6, 10:02 am ET
Alluvial diamond evaluation program commences
Shares Issued and Outstanding: 100,566,601 TSX: SDM AIM: SRE
TORONTO, April 6 /CNW/ - SouthernEra Diamonds Inc. ("the Company") (TSX: SDM, AIM: SRE) announced today that ground follow-up of kimberlite targets generated from recent airborne geophysics is returning positive kimberlitic sampling results. Additionally, the Company announced that it has commenced alluvial diamond testing within the first of its seven separate alluvial projects in the Democratic Republic of the Congo (DRC).
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Since 2003, SouthernEra has secured a large and outstanding portfolio of exclusive diamond exploration permits covering 13,614 square kilometers located within the diamond-rich Kasai Provinces of the DRC. The majority of the permits lie within a 'kimberlite emplacement corridor', which is underlain by Archean basement granite-gneiss of the Congo Craton, and extends from the DRC southwest into the renowned diamond producing Lunda Norte Province in neighboring Angola, which hosts the massive 23.2 million carat Camafuca kimberlite complex in which the Company has an 18 percent free-carried interest. This corridor is considered the world's most prospective and largest new diamond exploration opportunity. The known kimberlites in this region are of exceptional size and grade, and the potential for new diamondiferous kimberlite discoveries in this region of the DRC is rated very high.
Last October, SouthernEra completed over 43,000 line-kilometres of airborne magnetic and radiometric geophysical surveys under contract with Fugro Airborne Surveys (Pty) Ltd. The surveys covered 21 of SouthernEra's 41 exclusive diamond exploration permits in the DRC. These 21 permits collectively comprise three separate primary kimberlite project areas; known as the Kito, Nyota and Akiki blocks. These three project areas are focused in the diamond-rich Kasai-Oriental Province, which has produced two of the 'top-ten' largest gem quality diamonds in the world and in the mid-1980's was producing up to 20 million carats of diamonds per year.
The geophysical data was integrated and merged with composites from satellite imagery and has to date generated 34 high priority targets and numerous moderate priority targets which, from their magnetic signature, resemble kimberlite pipes. The diameter of each of these bodies is estimated from 170 to 750 meters. Of the 34 high priority targets about half are classic dipolar anomalies.
Independently, the selected targets have been compared with detailed historical data relating to diamond finds and production recorded by companies producing diamonds before the DRC's independence in the 1960's, as well as with current informal digging activities. This comparison has revealed the proximity of some the airborne targets to known alluvial reserves, indicating that they could potentially be the source rocks for the alluvial diamond occurrences.
In the Kito Block, which is centered on a region where diamonds are both of high quality and value, a number of the nineteen identified targets are also encouragingly close to areas of known alluvial diamond production. The Nyota Block has yielded two out of eight identified targets, which coincide almost exactly with proven high grade alluvial reserves (up to 29 carats per cubic meter), and three more targets appear very well positioned as potential sources of the alluvial diamonds. Informal artisinal diamond digging is widespread throughout this area, with one target located less than 200 meters upslope of current colluvial workings. Within the Akiki Block, stream samples collected by SouthernEra have returned kimberlitic indicator minerals (including several unique suites of kimberlitic ilmenite) immediately downstream of the seven identified airborne targets.
The regional and detailed site-specific stream and soil sample follow-up of the aeromagnetic survey targets is progressing as scheduled. Ground geophysical surveys to further define high interest airborne targets are set to commence.
In addition to the above primary kimberlite projects, SouthernEra has also secured high interest alluvial diamond permits within the Tshikapa/Kasai/Luebo alluvial diamond field in the Kasai-Occidental Province, and also within a second major alluvial diamond field in the Kasai-Oriental Province (actually located within the Nyota project area). These permit areas collectively constitute seven separate major alluvial projects. Following a review of the alluvial diamond potential within these permit areas, a SouthernEra exploration base has been established in the town of Tshikapa, which will become the center of feasibility studies into SouthernEra's alluvial projects in the Kasai Occidental Province.
The Belgian mining company, Forminière, extracted approximately 14.5 million carats from the Tshikapa region up until 1955 mainly from mechanized mining of terrace deposits. This area has historically produced the highest value diamonds reported in the DRC. Current alluvial active channel dredging operations occur both upstream and downstream outside of the SouthernEra permits, as well as active artisinal terrace mining. SouthernEra's diamond recovery equipment has been transported to this region and testing of the first of the seven separate alluvial diamond projects has commenced with encouraging early results. Following the assembly and commissioning of a gravel suction dredge and recovery plant during the next few weeks, evaluation of the active river channels will commence to determine the nature of the diamond deposits and best mining method.
In addition to the active river channels, significant diamond potential occurs within large alluvial flats within the permit areas. A systematic seismic geophysical program will commence within weeks to define the bedrock topography beneath the alluvial flats in order to establish the locations of paleochannels which are expected to host high grade concentrations of gravel within the alluvial flats system. Following the completion of the geophysical surveys and interpretation of the results selected areas will be evaluated by Banka drilling, pitting and bulk sampling. The potential of the alluvial terraces in the project area will be investigated later this year.
In June 2003 the DRC Mining Registry (Geological Survey) was opened for the first time under the new World Bank-sponsored Mining Code (Law 007/2002). The new Mining Code has encouraged renewed interest on the part of diamond mining and exploration companies in the DRC, including the major producers De Beers and BHP-Billiton. The implementation of the new Mining Code, led by the Ministry of Mines and the Mining Registry, has been carried out in an encouragingly efficient and transparent manner. In the case of diamond exploration, the Mining Code gives permit holders exclusive rights for a period of four years, renewable for two additional two-year periods. On discovery of an economic deposit, the holder can automatically apply for a mining permit.
Mr. Uwe Naeher, Professional Geologist, is the qualified person under NI 43-101 responsible for the technical information in this release. All stream and soil samples collected for the recovery of kimberlitic indicator minerals are processed at SouthernEra's in-house diamond laboratory located in Polokwane, South Africa.
The DRC is one of five countries in which SouthernEra is engaged in advanced diamond exploration. Others include Canada, South Africa, Gabon, and Australia. This represents the fourth most active global diamond exploration program after the majors DeBeers, BHPB and Rio Tinto. The Company also operates the Klipspringer Diamond Mine in South Africa and maintains an 18 percent free-carried interest in the Camafuca Diamond Project in Angola.
Some statements contained in this news release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding exploration work. Actual results could differ materially from those anticipated. The Company disclaims any obligation to update forward-looking statements.
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For further information
SouthernEra Diamonds Inc.: Howard Bird, Vice President Exploration, or Sharon Allan, Investor Relations, Telephone: (416) 359-9282, Fax: (416) 359-9141, e-mail: inbox@southernera.com
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