Drilling Report

SouthernEra Diamonds Reports Discovery of New Diamondiferous Kimberlite

    and Microdiamond Results from its Lac de Gras Project, Northwest

    Territories, Canada

 

    Shares Issued and Outstanding: 86,633,701

    TSX: SDM

    AIM: SRE

 

    TORONTO, Feb. 24 /CNW/ - SouthernEra Diamonds Inc. (SDM: TSX, SRE: AIM)

today reported the discovery of a new diamondiferous kimberlite and

microdiamond results from the Company's 60 percent owned Lac de Gras X Claim

Diamond Project in Canada's Northwest Territories, located 25 kilometers west

of the Diavik Diamond Mine.

    During 2004 at the Lac de Gras X Claims Project, a 824.7 meter diamond

drilling program was completed to test selected high interest airborne targets

and to re-test the known kimberlite pipe, EG02. The drilling program resulted

in the discovery of a new diamondiferous kimberlite pipe, EG-01B. In drill

hole LDG04-05, an -90 degree hole, kimberlite was intersected from

23.40 meters to 74.70 meters. The previously known pipe, EG02, was re-drilled

and intersected kimberlite from 14.30 meters to 87.30 meters in drill hole

LDG04-09, an -90 degree hole. Representative kimberlite samples from both

pipes were sent for micro-diamond processing to the Saskatchewan Research

Council Laboratory in Saskatoon. The results are presented in Table 1.

 

    Table 1. Square Mesh Sieve diamond results for Pipes EG-01B and EG-02.

    -------

 

   

    -------------------------------------------------------------------------

              Sample

    Sample      Wt.   +0.105  +0.150  +0.212  +0.300  +0.425   +0.6

               (kg)     mm      mm      mm      mm      mm       mm    TOTAL

    -------------------------------------------------------------------------

    EG-01B     41.6      1       0       0       0       0        0      1

    -------------------------------------------------------------------------

    EG-02     71.55      5       4       2       2       0        1     14

    -------------------------------------------------------------------------

 

    To date, six kimberlite pipes have been discovered at the X Claims

Project of which four are diamondiferous. SouthernEra will continue to focus

on locating the kimberlite pipe sources to the unexplained indicator mineral

trains previously defined by sonic and reverse circulation drilling at the Lac

de Gras Project. Ten selected airborne targets will be tested during the

upcoming winter season with ground geophysics followed by drill testing of

positive targets. Based on the overall diamond results no further testing of

pipes EG-01B and EG-02 is warranted at this time.

    The Lac de Gras X Claims Project is part of SouthernEra's extensive

Northwest Territories diamond exploration program, which is one of the largest

active programs in the region (see below for link to map). This program is

focused on the Lac de Gras Kimberlite Field, host to Canada's two existing

diamond mines (Diavik and Ekati) as well as the Southern Kimberlite Field,

located approximately 100 kilometers south of the Diavik mine. Within the

highly prospective Lac de Gras region, the Company's program includes:

 

    -  Lac de Gras X Claims Project (60 percent SouthernEra);

    -  Yamba Lake(60 percent);

    -  Monument Project (22.5 percent);

    -  Tenby Project (20 percent);

    -  ATW Project (10 percent);

    -  Commonwealth Project (10 percent); and

    -  WO Block Project (4.9 percent).

 

    On the Southern Kimberlite Field, SouthernEra's program includes the Back

Lake Project(60.4 percent) and the Kidme Block Project (60 percent).

Exploration programs on the Lac de Gras, Yamba Lake, Monument, WO Block, Back

Lake and Kidme projects will be conducted from March to mid-May and will be

reported on as results become available.

    Mr. Uwe Naeher, Professional Geologist, is the qualified person, under

NI 43-101, responsible for the technical information in this release.

    SouthernEra Diamonds is one of Canada's largest fully integrated diamond

companies with extensive diamond exploration in five countries, including

Canada, Australia, Gabon, the Democratic Republic of the Congo and South

Africa. This represents one of the most active global diamond exploration

programs. 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.

 

    (Link to map: www.southernera.com/operations/map_nwt_claims.html)

 

    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.

 

 

    For further information: PLEASE CONTACT: SouthernEra Diamonds Inc.,    

Howard Bird, Vice President Exploration; or Sharon Allan, Investor Relations, 

Telephone: [phone], Fax: [phone], e-mail:                      

inbox(at)southernera.com

    (SDM.)