AMI.L Regulatory News (AMI)

3 Apr 2007 07:01

Sierra Leone Diamond Company Ld03 April 2007 For immediate release 3 April 2007 Sierra Leone Diamond Company Limited ("SLDC" or "the Company") Second Diamond Sale from Alluvial Operations Sierra Leone Diamond Company Limited (AIM:SLD), the diamond and mineralexploration and production company with interests wholly focussed on the countryof Sierra Leone, today announces the results of its second sale of roughdiamonds sourced wholly from its alluvial operations in the Kono district ofSierra Leone. The Company engaged the services of Overseas Diamonds NV ("OD"), a diamondmarketing company based in Antwerp, to undertake the sale, which attracted 17diamond buyers. The sale of diamonds was fully compliant with the KimberleyProcess Certification and the diamonds were sourced from production at theCompany's alluvial operation from 23 August 2006 to 23 February 2007. Seasonalrains hampered mining in the latter stages of 2006 and the Company believes thatactual results to date do not yet represent steady state levels of production.The Company has been undertaking bulk sampling activities in conjunction withthe mining of gravels in order to establish areas of viable grade and tonnage. The Company sold 10,105.91 carats at US$440.96 per carat, realising gross saleproceeds of US$4,456,288.39. Details of the sale are as follows: Lot Size Description Number Carats Proceeds Proceeds number of stones US$/carat US$ 1 3GR CLV 303 548.96 20.00 10,979.20 12 2 Carat Z WHITE 144 319.91 1,100.00 351,901.00 13 3 to 4 Carat Z WHITE 98 344.19 1,750.00 602,332.50 14 5 to 10 Carat Z WHITE 42 267.02 2,840.07 758,355.49 15 8GR to 10 Carat MKB WHITE 193 625.69 750.00 469,267.50 16 8GR to 10 Carat MKB/CLV 183 566.83 475.00 269,244.25 17 >7 CTD 3,722 2,176.21 32.00 69,638.72 >7 MANUF 2 8.28 - - Total >7 3,724 2,184.49 18 SPEC 1 +45 Carat 1 45.25 13,000.00 588,250.00 19 SPEC 2 +13 Carat 1 12.89 8,000.00 103,120.00 20 SPEC 3 Mixed 11 142.31 1,875.18 266,856.87Grand Total 10,105.91 440.96 4,456,288.39 (See glossary below for explanation of terms used in the above table) The sale included 13 'special' diamonds (specials being defined as thosediamonds greater than 10.8 carats) totaling 200.45 carats and realising saleproceeds of US$958,226.87 at US$4,780.38 per carat. Davy Lapa, of OD, who arranged the diamond sale in Antwerp on behalf of SLDC,commented: "The diamantaires who viewed the SLDC parcels were very pleased with the qualityof the product on sale and as a result we were able to achieve an average priceof US$440.96 per carat, which in our considerable experience in the industry indicates a very positive endorsement of SLDC's diamonds from industry buyers.This reaction certainly provides the foundation for the Company to achievesimilar value from future sales, assuming the quality of stones in this sale is representative of future production. OD is looking forward to helping SLDCdevelop a successful long term diamond marketing strategy". Glossary Description Meaning Explanation