Drilling Report

SouthernEra Diamonds discovers two additional kimberlites on the

    Monument Property, Northwest Territories, Canada

 

    -  Kimberlite intersected in 7 of 8 drill holes

    -  Diamond content to be tested

    Shares Issued and Outstanding: 159,464,229

    TSX: SDM

    AIM: SRE

 

    TORONTO and LONDON, May 3 /CNW/ - SouthernEra Diamonds Inc. (the

"Company") (TSX: SDM, AIM: SRE) is pleased to report the discovery of two more

new kimberlites at the Monument Diamond Project in the Northwest Territories,

Canada adding the Nic and Sonja kimberlites to the previously announced RIP

kimberlite. The Company has enjoyed success in intersecting kimberlite in 7 of

8 drill holes with the spring 2006 program still ongoing.

    Kimberlite Nic is land-based and is located 450 meters west north west of

the diamond bearing kimberlite pipe DD17. Discovery drill hole MON06-06

intersected kimberlite between 60-79.5 meters, and hole MON06-07, which was

collared perpendicular to MON06-06, intersected kimberlite between 35-69

meters. Drilling targeted a magnetic low anomaly. The kimberlite is a coarse

grained pyroclastic, with abundant 2 cm accretionary lapilli, coarse chrome

diopside and pyrope garnet xenocrysts.

    Kimberlite Sonja is land-based and is located 280 meters north west of

Nic and was discovered by drill hole MON06-08, which intersected kimberlite

between 54-82 meters depth. The tested geophysical target was a strong

magnetic low. The kimberlite is dark grey, macrocrystic and pyroclastic with

olivine up to 5 mm in size and coarse grain chrome diopside. All drill holes

on both Nic and Sonja were drilled at a -45 degree dip.

    The Company also drilled the known diamond bearing kimberlite occurrence

DD17-11. Drill hole MON06-04 (dip -45 degree), intersected kimberlite between

22-57 meters. A second hole, MON06-05, drilled from the same set-up at a -70

degree dip intersected kimberlite between 41.2-93.0 meters depth. The

objective of these two holes was to define the shape of the body and increase

the sample size for microdiamond testing.

    Kimberlites Sonja, Nic, DD17, RIP and DD17-11 all align and their

geophysical anomalies form what looks like a 1.2 km long string of blue pearls

on magnetic maps. Their relationship to one another will be determined using

petrology, age dating, geochemistry and their continuity tested with

additional diamond drilling.

    Field crews continue to collect detailed ground magnetic and ground

gravity data in search of additional kimberlite targets on the property. A 0.4

mGal gravity low anomaly that occurs beneath a lake and was defined from one

of this spring's gravity surveys, is currently being drilled tested.

    The Monument Property hosts four known kimberlite pipes (DD17, DD17-11,

DD39 and DD42) and two kimberlite dykes (DD2002 and DD42 East Dyke). All are

diamond-bearing and are part of the Lac De Gras Kimberlite Cluster. Improved

diamond data for DD17 is expected in the second quarter of 2006 from

kimberlite samples currently being processed at SRC Laboratories in Saskatoon.

The DD17 kimberlite samples were collected during a drill program completed in

2005. Drill core from Sonja, Nic, RIP and DD17-11 is being logged in detail

and sampled, and will be submitted for caustic fusion microdiamond analysis

and mineral chemistry with results projected for the third quarter, 2006.

    The Monument Property is located on the south shore of Lac de Gras, NWT

at the south end of a kimberlite emplacement corridor that hosts the Ekati

Diamond Mine (operated by BHP Billiton). The Monument project is owned 57.49%

by New Nadina Explorations Limited, 22.11% by SouthernEra Diamonds Inc., and

20.4% by Archon Minerals Ltd. with a 1% Royalty payable to each Kennecott

Canada Exploration Inc. and DHK Diamonds Inc. The project is operated by New

Nadina, under supervision of Mr. K. R. Kivi, P.Geol., an independent Qualified

Person as defined by National Instrument 43-101. Field operations are

conducted by SouthernEra Diamonds' experienced exploration team under

supervision of Mr. Uwe Naeher, P.Geol. Mr. Kivi has reviewed the content of

this news release.

 

    SouthernEra Diamonds is one of Canada's fully integrated diamond

companies with extensive alluvial and kimberlite diamond exploration in the

DRC as well as other countries including Canada, Gabon, Zimbabwe and South

Africa. The Company also holds the Klipspringer Diamond Mine in South Africa

and maintains an 18 percent free-carried interest in the Camafuca Diamond

Project in Angola.

 

 

    For further information: SouthernEra Diamonds Inc., Mr. Howard M. Bird,

Senior Vice President, Exploration or Ms. Sharon Allan, Investor Relations,

Telephone: [phone], Fax: [phone], 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)