Drilling Report

SouthernEra Diamonds Inc. - DO-27 Joint Venture in Canada's NWT Returns

Encouraging Advanced Exploration Results

 

    -  2005 Bulk Sample of DO-27 grades an average of 0.98 carats/tonne

 

    -  Large high grade central core identified

 

    -  Core drilling extends depth of kimberlite to over 465 meters

 

-         Resource delineation core drilling program to commence in July

 

    Shares Issued and Outstanding: 102,066,601

    TSX: SDM

    AIM: SRE

 

    TORONTO and LONDON, June 14 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM;

AIM: SRE) has received an encouraging report from the operating partner of the

DO-27 Joint Venture, Peregrine Diamonds Ltd., following yesterday's release of

exploration results from the 2005 mini-bulk sample of the DO-27 kimberlite

pipe, which is located 23 kilometers southeast of the Diavik(TM) Diamond Mine

in Canada's NWT.

    The central portion of the DO-27 main vent tested during the 2005 program

returned an average grade of 0.98 carats per tonne. The DO-27 pipe is made up

of a main vent and a subsidiary northeastern vent and comprises the southern

lobe of the Tli Kwi Cho kimberlite complex. The main vent of DO-27 has a

surface expression of over 400 meters by 200 meters (greater than 6 hectares)

and, combined with the northeastern subsidiary vent, has a surface area of

approximately 9 hectares.

    A total of 1,806 diamonds were recovered using a 1mm screen. A total of

21 stones larger than one-half carat were recovered with the largest stones

coming from the central volcanic kimberlite facies. The four largest stones

were a 2.93 carat light brown flattened octahedron; a 2.66 carat off-white

tetrahexahedron; a 1.85 carat clean white octahedron; and a 1.62 carat clean

white complex tetrahexahedron. The diamonds have been sent to a number of

internationally recognized diamond valuators for complete valuations.

    The Joint Venture completed six large diameter (13 3/4 inch) reverse

circulation (RC) drill holes in the DO-27 main vent during early 2005. This

produced 151.27 dry tonnes of kimberlite which was subsequently processed at

the Ekati(TM) Diamond Mine. The tonnages were calculated using measured and

estimated hole dimensions and measured specific gravities. Three N.Q. core

drill holes were also completed to give geological control on the RC drilling

and to provide additional information about the pipe at depth.

    Two different primary pyroclastic kimberlite phases were intersected in

the portion of the pipe tested by the RC drilling. Holes RC 1, 2, 4, 5, and 6

sampled a layered sequence of primary pyroclastic tuffs in the central portion

of the pipe that were rich in chrome diopside and pyrope and contained lesser

amounts of fresh olivine. RC 3, the southernmost hole of the program,

intersected a completely different volcaniclastic kimberlite facies with high

concentrations of fresh olivine. The individual grades and specific diamond

information for the six RC holes are summarized below:

 

    DO-27 - Pyrope, Chrome Diopside-Rich Facies

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

                 Total    Sample       Total   Carats  No. Stones    Largest

    Drill Hole   Depth    Weight       Carat   per     greater than  Stones

                 (Meters) (Dry Tonnes) Weight  Tonne   Half Carat    (Carats)

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

    RC 1           209     45.74       47.32    1.03         4     2.93, 1.62

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

    RC 2           124     28.96       27.66    0.96         5    1.85, 0.96,

                                                                         0.94

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

    RC 4          93.5     12.02       11.99    1.00         1           2.66

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

    RC 5            83     12.20       11.66    0.96         3           0.76

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

    RC 6            77      9.54         7.4    0.78         1            0.5

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

    Total/Average         108.47      106.03    0.98        14

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

 

 

    DO-27 - Fresh Olivine-Rich Facies

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

                 Total    Sample       Total   Carats  No. Stones    Largest

    Drill Hole   Depth    Weight       Carat   per     greater than  Stones

                 (Meters) (Dry Tonnes) Weight  Tonne   Half Carat    (Carats)

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

    RC 3         190.5     42.80       29.93    0.70         7           0.98

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

 

    The Joint Venture also completed a program of three N.Q. diamond drill

holes at DO-27 designed to test the depth of the kimberlite and to obtain

geological information on lithological variations detected in the RC drilling.

A total of 750 meters was drilled during April and May with the deepest hole

drilled to 465 meters of depth and ending in kimberlite and a second hole

drilled to 230 meters, which also ended in kimberlite.

    This program has significantly extended the known depth of the DO-27

kimberlite, which was previously drilled to a maximum depth of 215 meters. The

N.Q. core will be sent for caustic fusion micro-diamond analysis which will

provide further information regarding the deeper levels in the pipe.

    The DO-27 kimberlite was discovered in 1993. Initial exploration returned

promising microdiamond results through core drilling encouraging the joint

venture partners at the time to move directly to an underground bulk sampling

program in 1994. Technical problems encountered resulted in the sample being

collected in the northeastern subsidiary vent and not from the central portion

of the main vent as originally intended. Grades of 0.36 carats per tonne were

obtained from the subsidiary vent and work on the project was suspended. The

main vent of DO-27 was never tested during the 1994 program. The latest

results contrast with the previous results from the peripheral kimberlite

facies and confirm that the DO-27 kimberlite contains a large and high grade

central portion to the pipe.

    The DO-27 JV intends pursuing an extended program of diamond drilling at

both DO-27 and the nearby DO-18 pipe (the northern lobe of the Tli Kwi Cho

complex) starting July, 2005. DO-18, located 700 meters to the north of DO-27,

occurs on land under a thin veneer of till cover. Microdiamond grades as high

as 1.41 carats per tonne over 242 meters were reported at DO-18 from several

diamond drill holes completed in 1993.

    The DO-27 Joint Venture comprises Peregrine Diamonds (54.475%), Archon

Minerals Ltd. (13.275%), Aber Diamond Corp. (7.35%), DHK Diamonds Inc. (20%)

and SouthernEra Diamonds Inc. (4.9%). Peregrine Diamonds will be responsible

for the sole funding of the next $500,000 of core drilling at DO-27 in order

to complete its earn-in obligations.

    Dr. Jennifer Pell, P.Geo., of Peregrine Diamonds is the Qualified Person

who oversaw the entire program at DO-27. Mr. Howard Coopersmith of Coopersmith

& Associates, Colorado, provided audits on the sample protocols and

procedures. AMEC Americas Limited in Vancouver audited the drilling and

sampling protocols as well as provided quality assurance/quality control

audits on the actual drilling, sampling, and evaluating procedures.

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

companies with extensive diamond exploration in five countries including

Canada, Australia, Gabon, the DRC and South Africa. 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.

 

    For further information: SouthernEra Diamonds Inc.: Mr. Patrick Evans,

President and CEO, or Mr. Howard Bird, Vice President Exploration, Telephone:

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

www.southernera.com

    (SDM. SRE)