AMI.L Regulatory News (AMI)

1 Aug 2006 14:39

Sierra Leone Diamond Company Ld01 August 2006 For Immediate Release 1 August 2006 Sierra Leone Diamond Company Limited ("SLDC" or "the Company") Corporate Update Sierra Leone Diamond Company Limited (AIM:SLD) today provides an update on itslicences and mining activities in Sierra Leone. Mineral Rights The Company has recently completed a full review of its license holding positionin Sierra Leone. SLDC is pleased to report that following a full audit by bothindependent legal and government authorities, it can confirm that all it'slicenses are in good standing and comply with the issuance terms contained inthe Minerals Act and accompanying registration requirements. The total licence position in summary is as follows; 13 Prospecting Licences 9 Exploration Licenses 4 Mining Leases (160 square kilometers) This license has been approved andissued by Cabinet of Ministers - Government decree. These are detailed in the table below Exclusive Prospecting Exploration Licenses Mining LeasesLicenses (EPLs) (EXPLs) (MLs) Northeast Regional - EPL001/03 Lower Sewa - EPL001/04 Ml01/06 - Nimiyama ChiefdomSumbuya East - EPL001/4 Sewa River EXPL ML02/06 - Nimikor ChiefdomGandorhun - EPL002/04 Mabua River EXPL ML03/06 - Sandor ChiefdomNorth Gori Hills - EPL003/04 Mambo River EXPL ML04/06 - Kamara ChiefdoMMawuru River - EPL005/04 Wadu EXPLCoastal Regional - EPL018/04 Bafi EXPLNorth Sula Mountain Tonkolili EXPLPampana River Lunsar EXPLJombohun Gberi HillKamaluTabe RiverRokel RiverLake Popei The Company's Explorations Licenses (EXPLs) have been upgraded from ExclusiveProspecting Licenses (EPLs) All of the Company's Mineral License Rights, Exclusive Prospecting Licenses(EPLs), Exploration Licenses (EXPLs), Regional Exclusive Prospecting Licenses(REPLs) and Mining Leases (MLs) have been acquired in pursuant to the Mines andMinerals Act No. 5 of 1994(as amended). The agreements, duly signed by the approximate Government authority, Minister ofMines and Mineral Resources, have also been duly registered in accordance withthe provisions of the Registration of Instruments Act Cap 256 of the Laws ofSierra Leone 1960 (as amended). Valuation of Alluvial Diamond Production - Kono Area As SLDC approaches full scale alluvial production, the Company has undertaken apilot program to confirm it's compliance with the Kimberley CertificationProcess. This program includes the testing of security arrangements, valuation,origin of country certification, deep boiling and acidisation and presentationof the diamonds for an open tender sale. The Company is pleased with thepreliminary valuation received, which underpins the expected diamond values.Final sales values from this pilot program will be announced by the end of thethird quarter 2006. Iron ore interest Subsequent to the positive review of the Company's iron deposits by SnowdenMining Consultants, the Company has contracted RSG Global to conduct a detailedexploration program in order to deliver a definitive resource statement anddevelopment program for the Tonkolili and Marampa iron ore deposits. On receipt of the final report, the Board will make an appropriate decision withregard to these assets. This may include a spin off, sale or Joint Venture. Recruitment of Financial Director The Company has taken adequate steps and is well progressed with the recruitmentof a Finance Director with mining and City experience. For further information please contact Sierra Leone Diamond Company Limited 44 (0) 1442 257246David Gadd-Claxton, President and Chief Executive OfficerGibril Bangura, Director and General Manger Buchanan Communications 020 7466 5000Bobby MorseBen WilleyNick Melson This information is provided by RNS The company news service from the London Stock Exchange