Re Joint Venture

SouthernEra Diamonds Expands African Exploration Program

 

    Company in Discussions with Diamond Majors on Potential Joint Ventures

    Shares Issued and Outstanding: 102,066,601

    TSX: SDM

    AIM: SRE

 

    TORONTO, June 23 /CNW/ - SouthernEra Diamonds Inc. ("SouthernEra")

(TSX: SDM, AIM: SRE) announced today that the Company has expanded its African

exploration program through the conclusion of a joint venture agreement with

Rockover Resources Limited over the Tsholotsho Diamond Project in Zimbabwe.

    The Tsholotsho Diamond Project is situated in western Zimbabwe and

consists of 21 granted and a further 7 "under application" prospecting permits

covering an area in excess of 14,000 km(2) underlain by basement Archaean

granite-gneiss of the Kalahari Craton. The Botswana/Zimbabwe border forms the

western boundary of the permit area. This project area is considered highly

prospective for primary diamondiferous kimberlite deposits and lies within

what is known as the "Orapa Kimberlite Track", which is a southwest -

northeast trending kimberlite emplacement corridor extending from Botswana

into Zimbabwe.

    The Orapa Kimberlite Track hosts some of the world's largest diamond

mines, including De Beers' Orapa and Lethlekane diamond mines in Botswana,

which together produce approx. 17 million carats per annum. Rio Tinto's

recently discovered Murowa diamond mine in Zimbabwe, situated some 170km to

the south-east of the Tsholotsho Diamond Project, is expected to produce

approx. 200,000 carats in 2005.

    Zimbabwe's diamond industry commenced with the discovery of alluvial

diamonds in 1903 followed by the discovery of the first diamondiferous

kimberlite pipe, Colossus, in 1907. There are more than eighty known

kimberlite bodies in Zimbabwe, most discovered by Rio Tinto and DeBeers.

Zimbabwe's first diamond mine, River Ranch, commenced production in the early

1990's. Currently the bulk of Zimbabwe's diamond production is from Rio

Tinto's Murowa diamond mine.

    The first phase of exploration at the Tsholotsho Diamond Project is

focused on locating the kimberlite sources to three geographically isolated

stream sediment kimberlitic indicator mineral anomalies, two of which contain

microdiamonds. These anomalies were discovered in the 1990's by gold

explorers. The area has never been prospected by Rio Tinto or De Beers. A

reconnaissance program of loam sampling has already commenced within the

anomalous areas and a regional sampling survey to test the potential of the

entire project area is also currently underway. To fast track the program,

SouthernEra has established an in-house sample processing laboratory in

Zimbabwe. In parallel, SouthernEra has processed approximately 200 archived

Rockover Resources Limited gold concentrate samples from the Tsholotsho

Diamond Project at its South Africa-based in-house laboratory. More than fifty

of these samples have to date returned positive kimberlitic indicator minerals

results, including some with diamond inclusion mineral chemistry.

    In addition, joint venture partner Rockover Resources has made available

to SouthernEra the magnetic data from six airborne surveys previously

conducted over the project area. The data has been reprocessed by SouthernEra

and is currently being evaluated for kimberlite targets.

    SouthernEra is able to earn up to a 100 percent interest in the project

through the funding of a multi-year exploration program and by paying Rockover

Resources a sliding scale royalty linked to the dollar per tonne rock value of

any discovery.

    SouthernEra also reported today that the Company is currently engaged in

discussions with global diamond majors which may result in the conclusion of

joint venture agreements over some of the Company's exploration projects.

Shareholders will be kept informed of developments in this regard.

    Uwe Naeher, Professional Geologist, is the qualified person under   

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

    Zimbabweis one of six countries in which SouthernEra is engaged in

diamond exploration. Advanced exploration is also underway in Canada,

Australia, the DRC, Gabon and South Africa. 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. This represents

the fourth most active global diamond program after the majors DeBeers, BHPB

and RioTinto.

 

    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: SouthernEra Diamonds Inc., Howard Bird, Vice

President Exploration, or Sharon Allan, Investor Relations, Telephone:

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

www.southernera.com

    (SDM. SRE)