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Gold/Mining/Energy : DIAMONDWORKS DMW.v -- Ignore unavailable to you. Want to Upgrade?

To: Ron S. who wrote (74)	6/18/1998 7:54:00 AM
From: Wayne Rumball	Read Replies (1) \| Respond to of 413

Kind of quiet in here. Well, here's the latest release; From: DiamondWorks Ltd. (DMW) diamondworks.com mailto:info@diamondworks.com --------------------------------------------------------------------------- Re: News Releases - Wednesday, June 17, 1998 DiamondWorks Reports Diamond Results from Camatchia Pipe in Angola =========================================================================== FOR IMMEDIATE RELEASE Diamondworks Reports Diamond Results From Camatchia Pipe In Angola VANCOUVER, CANADA - Bruce Walsham, Chairman, President and CEO of DiamondWorks Ltd., is pleased to announce positive diamond results from analyses of samples from core drilling at the Camatchia kimberlite pipe, at the company's Luo project in northwest Angola. DiamondWorks' drilling results compare favorably to previous data obtained from drilling performed in the early 1970s by Diamang, a former Angolan mining consortium that included De Beers as its technical advisor. Based on data from Diamang's work, the pipe has an estimated diamond resource of 13 million carats down to 300 metres. The results are also comparable to grades of several large kimberlite pipes currently being mined in Southern Africa, such as the Kimberley Mines and the Koffiefontein Mine. Based on this new, confirmatory information, DiamondWorks' plan to begin a 100,000-tonne bulk sampling program on the Camatchia pipe during the third quarter is totally justified. The bulk sample will provide more accurate information about the grade, quality and economic value of the deposit. A total of 59 samples, comprising 841 kg of kimberlite core, were analyzed. The samples were from a delineation-drilling program of 18 holes drilled into the kimberlite on a 50-metre grid pattern. The average depth of the holes was 56 metres and the deepest hole was stopped in primary kimberlite at a depth of 101 metres. The pipe appears to be open to depth below this point. The drilling confirmed that the pipe's surface area is 27.9 hectares, making it one of the largest, known diamond-bearing kimberlites in the world. The total number of diamonds recovered from the drill core is as follows: -------------------------------------------------------------- Kimberlite Sample Number of Diamonds Pipe Weight Microdiamonds Macrodiamonds (kg) less than 0.5 mm greater than 0.5 mm -------------------------------------------------------------- Camatchia 841 90 16 -------------------------------------------------------------- Note: Microdiamonds are stones with a maximum dimension of less than 0.5 mm and greater than 0.1 mm. Macrodiamonds are stones with one dimension equal to, or greater than, 0.5 mm. Independent Diamond Laboratories Pty. Ltd. of Perth, Australia, performed the analyses. The samples were treated by caustic dissolution and heavy liquid separation, followed by hand-picking of the micro and macro diamonds. Four distinct kimberlitic facies were identified in the core: primary kimberlite, tuffisitic kimberlite, diamictite and reworked kimberlitic breccias. The average grade of the primary and tuffisitic kimberlite samples is approximately 0.22 carat per tonne, and the overall grade of the samples is 0.13 carat per tonne. The analyses of core samples indicate a direct correlation between the size of the sample and the diamond distribution, giving preliminary indications of the occurrence of coarse diamonds. Based on Diamang's sampling results, the independent engineering firm of Watts Griffis and McOuat estimated that the pipe contains probable diamond reserves of 26 million tonnes, grading 0.11 carat per tonne (roughly three million carats) to a depth of 96 metres. An additional inferred resource of 67 million tonnes, grading 0.15 carat per tonne (10 million carats), is estimated from 100 to 300 metres below surface. Diamang reported that 50% of the diamonds collected in its samples were gem quality. Based on Diamang's recovery of more than 10,600 carats from its sampling work, DiamondWorks estimates that the current average value of the Camatchia diamonds is between US$100 and US$150 a carat. Assuming positive results from the bulk sampling program, DiamondWorks plans to begin independent, final feasibility studies at Camatchia later this year, with a view to commence initial production at the pipe in 1999. DiamondWorks is a global diamond mining company. The company is in commercial diamond production at the Luo mine in northwest Angola, and will begin production later this month at its Yetwene mine, also in Angola. DiamondWorks has interests in a number of other mineral properties Sierra Leone, Lesotho, Canada, China and Venezuela. For further information, please contact: Bill Trenaman at 604-669-8871, or view DiamondWorks' website at diamondworks.com. =========================================================================== Copyright (c) 1997, 1998 DIAMONDWORKS LTD. All rights reserved. For more information, visit our website at the address diamondworks.com ===========================================================================

To: Ron S. who wrote (74)	6/23/1998 7:15:00 AM
From: Ron S.	Respond to of 413

F.P. Article - DiamondWorks set for production at second Angolan mine By PAUL BAGNELL Mining Reporter The Financial Post Tuesday, June 23, 1998 DiamondWorks Ltd. expects to begin commercial production at a new diamond mine in Angola by the end of this month, the company said yesterday. Vancouver-based DiamondWorks has begun testing its diamond recovery plant at the Yetwene mine site in northeastern Angola. Yetwene is expected to produce 100,000 carats of diamonds a year, at an average cost of US$200 to US$250 a carat. Last July, the company began extracting diamonds at its Luo mine, about 100 kilometres south of Yetwene. Luo is expected to turn out 80,000 carats a year. Both mines produce diamonds from alluvial gravel lying near the banks of the Chicapa River. DiamondWorks says the two mines, when they are running at full capacity, will put the company among the top "three or four" publicly traded diamond producers in the world. ÿAs operator of the Yetwene mine, the company will receive 50% of profits under an agreement with partner SML Yetwene, a private Angolan company. ÿShares of DiamondWorks (DMW/TSE) closed yesterday at $1.10, unchanged from Friday. John Hainey, an analyst at Yorkton Securities Inc. in Toronto, said investors are waiting for the company to establish a track record of diamond production. He said DiamondWorks' large public float -- it has 95.5 million shares outstanding -- is another reason for the low share price. Political risk associated with Angola is a third factor keeping the price down, he said. ÿThe country was gripped by civil war between 1975 and 1994, when a ceasefire was signed between the government and the rebel National Union for the Total Independence of Angola. Spokesman Bill Trenaman said so far DiamondWorks has operated in Angola without incident. The Yetwene site was developed under budget, mainly because it could transport material by truck through former UNITA strongholds, he added.ÿLast year, when the company built the Luo mine, materials had to be flown in because of security fears. It employs two security companies at the mine sites, one to safeguard the diamonds and the other to protect its employees. On May 22, the manager of an Angolan diamond project operated by Toronto-based SouthernEra Resources Ltd. was shot to death by bandits believed to be former UNITA members. ÿ