Sierra Leone - Kono update

RNS Number : 0468X

Petra Diamonds Ld

19 June 2008

 



19 June 2008                                                                                                                             AIM: PDL

Petra Diamonds Limited 

('Petra')

Sierra Leone - Kono update

Petra, the international diamond mining group, announces the following update with regards to the Kono project in Sierra Leone. 

Highlights:

• 1,049 carats (12,132 diamonds) recovered from trial mining to end May 2008 (19 February 2008: 760 carats / 8,640 diamonds)

• First diamond tender scheduled for August 2008, providing indication of average value per carat 

• Pol-K shaft in-situ development grade increased to 66 carats per hundred tonnes ('cpht') and Bardu shaft in-situ development grade established as 75 cpht

• Electromagnetic survey (3,167 line km) now completed over Kono project area; target identification and follow-up to commence shortly

Johan Dippenaar, CEO of Petra, commented: 'Trial mining operations at the Kono project continue to deliver encouraging results, including the increases in grade now being achieved. The first tender of Kono diamonds this August will give an indication of the average value per carat for this project and as diamond production from the trial mining increases over the coming months, we will also be able to offset total project expenditure against revenues generated by regular diamond sales.'

Overview

The exploration and trial mining operations at Kono are progressing well. Two shafts are being developed, Pol-K and Bardu, and processing of exploration and development material to date has yielded 12,132 diamonds, weighing a total of 1,049 carats.

In August 2008 the first sales of diamonds from the Kono project will be made, when a parcel of approximately 800 carats from the Pol-K shaft will be placed on tender. This sale will give an indication of the average carat value. A second tender, comprising diamonds from the first Pol-K trial stope, is scheduled for October 2008.

As diamond production from the trial mining stopes increases over the coming months, revenues from diamond sales are expected to generate regular income to offset against total development expenditure.

Pol-K shaft

The Pol-K shaft and development is now at 64.5 metres and preparations are underway for the commencement of test stope mining. Stoping is expected to commence by August and should allow for increased ore extraction and recovery of diamonds, enabling Petra to obtain a more representative diamond grade and value. The current in-situ development grade at Pol-K has increased to 66 cpht (19 February 2008: 63cpht), and some 668 carats have been produced from this kimberlite fissure.

Bardu shaft

At the Bardu shaft, where development is at 50 metres, a break out from the shaft has begun and exploration development along strike has commenced; trial mining stopes will be established once ground conditions permit.  An in-situ development grade of 75 cpht is being recorded at Bardu and some 244 carats have been produced from this kimberlite fissure.

Airborne EM survey

Due to the considerable exploration potential at Kono, a 3,167 line km airborne electromagnetic geophysical survey has been completed by Fugro Airborne Surveys, the objective being the discovery of kimberlite pipes and blows.  Processing of the data from the survey is expected to be completed by August, when target identification and follow-up of selected anomalies will commence.

Note:

Petra's interest in the Kono diamond project is 51%, with its joint venture partner Stellar Diamonds Limited ('Stellar'), a 63.2% owned subsidiary of Mano River Resources Inc (AIM: MANA, TSX-V: MNO), holding the remaining 49%. Petra is the operator of the Kono project.

Ends

For further information, please contact:

Cathy Malins	Telephone: [phone]
Petra Diamonds, London

Julian Walker / Harriet Pask	Telephone: [phone]
Hogarth Partnership Limited	[e-mail]

Adrian Hadden	Telephone: [phone]
Collins Stewart, London

Notes to Editors:

About Petra Diamonds

Petra Diamonds is an international diamond mining group with a balanced portfolio combining major producing mines, world class exploration assets and a cutting and polishing business.

With operations in South Africa, Angola, Botswana and Sierra Leone, Petra's objective is to continue to grow production, developing its stature as a leading diamond producer in all of the countries in which it operates. 

In South Africa, Petra has four producing mines and recently reached agreements to acquire two further mines from De Beers (Cullinan and Kimberley Underground).  The group is on track to increase its annual production from 180,000 carats in the year to June 2007 to over 400,000 carats in the year to June 2009 and is targeting annual production of over 1 million carats thereafter.

Complementing the Group's production is an exploration and development portfolio spread across some of the world's most prospective diamond fields. In Angola, Petra is developing the world class Alto Cuilo and neighbouring Luangue projects. In Botswana, Petra has established the largest diamond exploration landholding in the country, where it believes that modern exploration techniques will hold the key to the discovery of new, major kimberlites. In Sierra Leone, Petra is developing a fissure operation with its JV partner Stellar Diamonds and test work to date indicates the potential for economic operations.

The Petra group now employs some 3,000 people and over the last 10 years the Company has developed a range of social initiatives which continue to make a meaningful impact upon the lives of employees and surrounding communities.  Petra's focus remains upon sustainable development, via educational programmes and skills transfer, to ensure a broad based approach with a lasting legacy, and all operations are carried out with the highest regard for the environment according to best practice. Petra will only commit to working in countries which are members of the Kimberley Process and shareholders can remain assured that Petra's diamonds will only ever be 100% conflict free.

For further information, please visit www.petradiamonds.com. 

 

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