Drilling Report

SouthernEra Discovers New Kimberlitic Bodies in Gabon, West Africa

 

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    TORONTO, Nov. 10 /CNW/ - SouthernEra Diamonds Inc ("SouthernEra") (TSX:

SDM, AIM: SRE) announced today that drilling has resulted in five additional

"meta-kimberlite" intersections within the COGEMAT Joint Venture 'Makongonio'

diamond exploration permit in southern Gabon. SouthernEra, the operator of the

project, has a 60 percent interest in the 1,837 square kilometer project. In

addition to the Makongonio Project, SouthernEra has three other diamond

exploration projects in Gabon: the 100 percent owned Kango and Sud projects,

where kimberlitic bodies have also recently been discovered; and the 95% owned

M'bigou Project.

    Since the onset of exploration in Gabon in 1999, SouthernEra's regional

stream sampling activities revealed kimberlitic indicator mineral anomalies

comprising spinel (some exhibiting diamond inclusion chemistry), rare ilmenite

and a micro-diamond. Based on these positive results, Fugro Airborne Surveys

was commissioned to conduct a 43,230 line-kilometer 200-meter spaced magnetic

and radiometric airborne geophysical survey in 2003. Within the Makongonio

diamond permit alone, over thirty aeromagnetic kimberlite 'pipe-like' targets

have been identified. Kimberlitic spinel has been recovered from soil samples

taken from four of these targets.

    Most recently, as announced on October 6, 2004, SouthernEra discovered

eight possible kimberlitic bodies sub-cropping in various small streams that

are positive for kimberlitic indicators. Kimberlitic spinel (some with diamond

inclusion chemistry) has been identified in all of the bodies, which exhibit

mineral chemistry similar to spinel recovered from regional stream sampling

campaigns, suggesting that these rock types are the source of this spinel. One

of the eight bodies, Mak-001, a hypabyssal-facies pipe at least 70 meters in

one dimension by a minimum of 25 meters in another, although highly altered,

is rated petrographically as high diamond interest. Currently two meta-

kimberlite samples from two different bodies (1 from the pipe Mak-001, the

other from a 7.5 meter wide dyke Mak-002) are presently in Canada for micro-

diamond analysis at SGS Lakefield Research Limited. Results are expected by

mid-December. Following this discovery, a diamond core-drilling program

commenced to test surface kimberlitic indicator mineral anomalies generated by

soil loam sample grids, as well as selected aeromag targets.

    "Makongonio-Grid-01", a soil sample loam grid anomalous in kimberlitic

spinels, was drill tested with four core holes. Meta-kimberlite was

intersected in three of the four drillholes. Hole DDH5i (-45 deg) intersected

3 meta-kimberlite dykes, with estimated true thickness intervals of 0.85

meters, 0.71 meters, and 0.35 meters. Hole DDH9 (-45 deg) intersected one meta-

kimberlite dyke with an estimated true thickness of 3.88 meters. Hole DDH10 

(-45 deg) intersected "massive" meta-kimberlite with an estimated true

thickness of 5.9 meters within a breccia zone extending an estimated true

thickness of 20.5 meters.

    These drill hole intersections can be correlated to the sub-cropping

Mak003 meta-kimberlite dyke and suggest the existence of a "corridor" that

currently has a minimum strike length of 800 meters. This corridor is host to

a number of other parallel dykes, commonly known as a "dyke swarm". This

system sits within a 15-kilometer north/south trending corridor defined by

kimberlitic indicator mineral positive stream samples, within which artisinal

diamond workings occur. Pipe Mak-001 is located within this corridor. Further

testing of targets within this dyke/pipe-system corridor is ongoing. Three

additional aeromagnetic targets have been drill tested however, no kimberlite

has as yet been intersected. A map of the Makongonio project area and the meta-

kimberlite occurrences is illustrated here:

http://files.newswire.ca/364/gabon.doc

    Within the newly discovered Makongonio 'meta-kimberlite' province, an

active program consisting of detailed stream and soil sampling, ground

geophysics, pitting and trenching, and drilling to discover further sources to

the kimberlitic indicator mineral and alluvial diamond positive drainage

basins, will continue until December 12th and will then recommence in mid-

January 2005.

    In addition to the discoveries at the Makongonio Project, two ultramafic

dykes were discovered in July in trenches within the Kango diamond permit, in

northwestern Gabon. These dykes, while too altered to be described

petrographically, contain abundant spinel. Soil grids within this permit have

yielded extremely high interest kimberlitic spinel with up to 10 percent being

of diamond inclusion chemistry. One G10 garnet has also been recovered from

these grids. Samples were processed at SouthernEra's company owned and

operated diamond laboratories in Libreville, Gabon and Polokwane, South

Africa. Diamonds up to 1.25 carats in size have been recovered from historic

exploration campaigns up to 2.5 kilometers downstream of these soil grids. A

ground-magnetic survey has been completed over the 'Komo-1' soil grid, and

'pipe-like' magnetic anomalies have been identified for drill testing in 2005.

    In the 'Sud' permit area in central-west Gabon, twenty-one kimberlite

dykes were drill intersected in 2004. The kimberlites discovered to date in

this area are of low interest petrographically, and are poor in kimberlitic

indicator minerals. However, stream sample kimberlitic indicator mineral

anomalies located further to the east exhibit higher diamond potential, and

aeromagnetic targets are currently being soil sampled for the recovery of

kimberlitic indicators prior to drill testing in 2005. Small diamonds have

recovered from the gold-sluices of alluvial gold miners working in this area.

    Since commencing exploration in Gabon, SouthernEra has discovered over

thirty-two new kimberlites and related rocks within four new clusters in three

new provinces.

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

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

    Gabonis one of five countries in which SouthernEra is engaged in

extensive diamond exploration. Others include Canada, Australia, 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.

 

    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

    (SRE SDM.)