Drilling Report

New Kimberlite Intrusion Discovered at the Monument Project in

    Canada 's NWT

 

    Core drilling program to test the DD-17 kimberlite pipe to commence

    in July

 

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    TORONTOand LONDON, July 6 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM;

AIM: SRE) today announced the discovery of a new kimberlite intrusion named

the DD-42 East Dike on the Monument Project in Canada's Northwest Territories.

    During the spring geophysical program exploration crews surveyed five

grids at the project site, completing 117 line-kilometers of detailed ground

magnetics and 97 line-kilometers of detailed horizontal loop electromagnetic

(HLEM) surveys. These surveys generated a new level of detail in the

geophysics to assist in preparations for diamond drilling.

    Diamond drilling focused in an area near the DD-42 kimberlite pipe and

six diamond drill holes were completed for a total 513.6 meters. Drill testing

of a linear HLEM conductor and magnetic response intersected the DD-42 East

Dike, a new sub-vertical hypabyssal kimberlite dike likely related to the   

DD-42 kimberlite pipe.

    The kimberlite dike was tracked for 250 meters along strike and

intersected in three drill holes with intercepts ranging from 0.65 to

3.0 meters. Mineral chemistry and petrology will be conducted to characterize

this new kimberlite intrusion. Another drill hole targeted the DD-42

kimberlite pipe and successfully intercepting kimberlite over 42.5 meters from

a depth of 55.5 to 98 meters. The core from this hole has been split and

submitted for microdiamond and kimberlite mineralogy studies.

    Kimberlites containing diamonds are known to exist on the Monument

Property, and include three kimberlite pipes (DD-17, DD-39 and DD-42) and one

kimberlite dyke (DD2002). Core from the newly discovered DD-42 East Dike will

now be analysed for diamonds. All kimberlites require further sampling and

modern processing to improve confidence in microdiamond data, mineral

chemistry and kimberlite geology. Bulk sampling has not occurred on any

kimberlites from the Monument Property. The kimberlites of the Monument

Property are part of the Lac de Gras cluster, and occur within 40 kilometers

of both the Ekati Diamond Mine (operated by BHPBilliton) and Diavik Diamond

Mines Ltd. (operated by Rio Tinto), which together produce a significant

percentage of the world's diamond production.

    A review of kimberlite indicator mineral geochemistry with modern

techniques has found that kimberlite DD-17 likely sampled significant

lherzolite from the diamond window of lithosphere beneath Lac De Gras. The

Nimis and Taylor Single Grain Clinopyroxene Thermobarometer (2001) was used to

make this determination. Diamond stability field chrome spinel, a small

eclogitic component and a moderate number of G10 garnets also complement DD-

17's mineral chemistry. Through this modern assessment of DD-17 mineral

chemistry interest in this kimberlite has increased. A further review of the

microdiamond data will now be conducted. In addition, new diamond drilling is

required to collect microdiamond data to establish a diamond distribution

curve for DD-17 and to log core with attention to the possibility of multiple

kimberlite phases. The diamond drill used in the spring campaign is currently

preparing to proceed with this drilling to test the DD-17 kimberlite pipe

during July.

    The Monument project is owned 22.11% by SouthernEra Diamonds Inc, 57.49%

by New Nadina Explorations Ltd, and 20.4% by Archon Minerals Ltd. The project

is operated by New Nadina and supervised by Mr. K. R. Kivi, P.Geo., an

independent Qualified Person under National Instrument 43-101. Mr. Kivi has

reviewed the content of this news release.

 

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

companies with extensive diamond exploration in six countries including

Canada, Australia, Gabon, the DRC, Zimbabwe 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. Howard Bird,

Senior Vice President Global Exploration, Telephone: [phone],

Fax: [phone], E-mail: inbox(at)southernera.com, www.southernera.com

    (SRE SDM.)