SouthernEra Recovers First Diamonds from DRC

SouthernEra Recovers First Diamonds from its Alluvial Evaluation Program

in the Democratic Republic of Congo (DRC)

 

    Kimberlite Exploration Program Discovers Evidence of New Kimberlite

    Provinces

    Shares Issued and Outstanding: 112,279,101                        

    TSX: SDM

    AIM: SRE

 

    TORONTO, Sept. 30 /CNW/ - SouthernEra Diamonds Inc. ("the Company")

(TSX: SDM, AIM: SRE) announced today that a 1.05 carat stone as well as a

large number of smaller diamonds have been recovered during the ongoing

exploration testing of a portion of its alluvial project in the Tshikapa

region of the DRC. The aim of this first phase program is to locate high

interest diamond bearing gravel deposits by testing a selected number of

separate sample sites along the course of the river. Within the project area a

total of 154.27 tonnes of active river channel gravel has been recovered and

is currently being treated. To date partially treated samples have recovered

506 diamonds (total 71.80 carats) from 5 of the 21 active channel exploration

sample sites that have been tested. The final results will be reported

following complete processing of the entire samples. At this stage the results

include only the diamonds recovered from the fine fraction 2 to 4 mm mesh

screen size, as the coarse fraction 4 to 16 mm mesh screen sizes will be

treated through a diamond X-ray Flowsort machine which is in transit. The

table below lists the results from the complete processing of the 2 to 4 mm

size fraction for 3 samples. Sample 11B and 11C are from basal gravels from

the same sample site and sample 8 is from a separate sample site. Following

the completion of the initial active river testing program, a parcel of

diamonds will be evaluated to determine a dollar per carat value.

 

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                           Tonnes           Diamonds         Carats

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    Sample 8

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    2mm to 4mm fraction    2.89             164              20.35

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    4mm to 10mm fraction   Results pending  Results pending  Results pending

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    10mm to 16mm fraction  Results pending  Results pending  Results pending

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    Total                  10.44            Results pending  Results pending

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    Sample 11B

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    2mm to 4mm fraction    2.15             142              22.90

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    4mm to 10mm fraction   Results pending  Results pending  Results pending

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    10mm to 16mm fraction  Results pending  Results pending  Results pending

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    Total                  5.21             Results pending  Results pending

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    Sample 11C

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    2mm to 4mm fraction    1.41             104              18.25

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    4mm to 10mm fraction   Results pending  Results pending  Results pending

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    10mm to 16mm fraction  Results pending  Results pending  Results pending

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    Total                  2.87             Results pending  Results pending

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    In addition to the active river channels, significant diamond deposit

potential exists within large alluvial flats occurring in the SouthernEra

permit areas. The exploration of these floodplain deposits has commenced in

one area with a large seismic geophysical survey. Seismic survey test-lines

completed earlier this year suggested that this geophysical method is capable

of defining the bedrock topography underneath the flats. This survey should

aid, with the assistance of drilling, in highlighting the locations of diamond

deposits within the alluvial flat system that will be bulk-sample tested in

2006.

    Photographs of diamonds recovered from the Tshikapa project area sample

sites may be viewed on the Company's website at www.southernera.com.

    SouthernEra's President and CEO Alasdair MacPhee said: "We are very

encouraged with the alluvial diamond results to date from an evaluation

program that is in its infancy. It represents SouthernEra's first potential

new source of diamonds since the Marsfontein Mine discovery in South Africa.

With approximately 30 km of river frontage to evaluate, these early stage

initial results have encouraged SouthernEra to increase its investment in the

plant and infrastructure in the DRC and further advance the program."

    In addition to the alluvial diamond program SouthernEra has an extensive

portfolio of exclusive primary diamond potential exploration permits covering

13,600 square kilometers located within the diamond-rich Kasai Provinces of

the DRC. The known kimberlites in this region are of exceptional size and

grade and this area is considered the world's most prospective new diamond

exploration opportunity. The majority of the permits lie within a 'kimberlite

emplacement corridor', which is underlain by Archean basement granite-gneiss

of the Congo Craton.

    The 2004 aeromagnetic geophysical survey generated numerous high priority

pipe-like targets and an ongoing program is testing selected targets with

ground magnetometer surveys and soil sampling for the recovery of kimberlitic

indicator minerals. Most samples are currently being processed but kimberlitic

ilmenite and a micro-diamond have been recovered from 1 target thus far. An

additional aeromagnetic survey, covering the remaining permit areas, is

scheduled for 2006 together with the drill testing of positive targets.

    In 2005 reconnaissance stream sampling started in earnest within the

permits. High interest kimberlitic garnet (G10's) and kimberlitic ilmenite

have been recovered as well as microdiamonds. In some cases the positive

drainage basins have been subject to significant artisinal alluvial diamond

mining activity, as well as historic commercial terrace mining by the Belgium

mining company, Forminiere. A number of the high priority aeromagnetic targets

are located within some of the diamond positive drainage basins. The

kimberlitic ilmenite chemistry data collected to date from the region suggests

that more than one kimberlite province is present.

    Mr. MacPhee added: "We have, over the past few months, been evaluating

various alternatives that would accelerate the alluvial and kimberlite

programs in the DRC, including discussions with major mining companies, in

order that the potential of these projects be realized as soon as possible."

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

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

stream and soil samples collected for the recovery of kimberlitic indicator

minerals are processed at SouthernEra's in-house diamond laboratory located in

Polokwane, South Africa.

    The DRC is one of six countries in which SouthernEra is engaged in

advanced diamond exploration. Others include Canada, South Africa, Gabon,

Zimbabwe, and Australia. This represents the fourth most active global diamond

exploration program after the majors DeBeers, BHP Billiton 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.

 

    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, Senior

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

[phone], Fax: [phone], e-mail: inbox(at)southernera.com; UK

contact: 4C-Burvale Ltd, Carina Corbett, John Carrick Smith, Tel:

[phone]/1, e-mail: corbett(at)4c-burvale.co.uk

    SDM. SRE