AMI.L Regulatory News (AMI)

24 Jul 2007 07:01

Sierra Leone Diamond Company Ld24 July 2007 Iron Ore and other Exploration activities update Sierra Leone Diamond Company Limited (AIM:SLD), the diamond and mineralexploration and production company with interests focused in Sierra Leone, WestAfrica is pleased to announce the following update on its Tonkolili and Marampairon ore projects as well as its other exploration activities. Tonkolili Iron Ore Project In 2004, the Company flew the first aeromagnetic survey in Sierra Leone. Theresultant data has now been processed by independent, Perth based geophysicalconsulting group, Resource Potentials. A high magnetic response, interpreted to represent Banded Iron Formation ("BIF"), has been defined to extend over 28 km of strike with a maximum width of 1.5 km. In addition 40,000m of surface channel sampling has been completed over 10 km of strike verifying BIF and iron mineralization. A 3D geophysical inversion model has been prepared using the available geophysical and geological data. At the Numbara prospect, which occurs at the southern extent of the magneticresponse, reconnaissance core drilling has commenced. Core hole NUM-DD-003 wasdrilled inclined at 60 degrees to a depth of 304 m and this hole intersected BIFfrom 36m and ended in mineralised BIF at the end of the hole. Thismineralisation remains open at depth. The entire 304 m of NUM-DD-003 core has been dispatched to independentmetallurgical testing laboratory, AMDEL Limited in Perth, Australia formetallurgical testwork. Results from the first 223 m of this testwork have shownthat a product grading 68 to 70% Fe can be produced. Given the uniformity of thecore throughout its entire length the Company anticipates that this grade shouldcontinue to at least 304m. In addition the BIF is relatively soft leading tolower crushing and grinding costs. Further, initial results show that up to 13%un-mineralised silica can be reject at -3.33 mm with less than 1% magnetic loss. Having regard for the 3D geophysical model, available geological information andpreliminary metallurgical results, a conceptual mineralized envelope potentiallycontaining in excess of 2 billion tonnes of contained iron ore exists atTonkolili. The Company has scheduled a work program of up to 200,000 m of drilling todefine the extent of the Tonkolili mineralisation. Further, metallurgicaltestwork, flowsheet development and preliminary engineering are to be undertakento complete a scoping study by the second quarter of 2008. The Tonkolili project is located approximately 150 km from the Pepel deep waterport where suitable stockpiling and shiploading infrastructure, requiringrefurbishment, already exists. Marampa Iron Ore Project The Company's Marampa iron ore project is contiguous with the historical Marampamine, which was operated by Delco between 1920 and 1970, and producedapproximately 100Mt of iron ore product grading 64% Fe. Interpretation of aeromagnetic and ground gravity surveys by Resource Potentialshas defined 20 km of prospective strike extending out from the historicalMarampa mine. Five targets have been defined; two of which correspond to significant gravityanomalies and represents high priority, 'walk-up' drill targets. Independentgeophysical consultants, Resource Potentials, believe these anomalies have thepotential to host haematite mineralisation. The Company is commencing a drilling campaign to define the extent of ironmineralisation along with initial metallurgical testwork, flowsheet developmentand preliminary engineering. An engineering study is being commissioned todefine the cost of refurbishing existing rail and port infrastructure. The Marampa project is located approximately 70 km from the Pepel deep waterport. Base Metals and Gold Exploration Over 300,000 line km of aeromagnetic interpretation is now complete and theCompany has received results for 6,157 stream sediment samples which have beenanalysed for multi elements. Aeromagnetic interpretation and coincidentgeochemistry resulted in 14 high priority, 11 priority targets and 40carbonatite targets being identified as potential drill targets. Of these, twohigh priority targets have been sampled including 5,280 samples from the SulaMountains region and 3,615 from Gori Hills. A third high priority target knownas Nimini Hills is currently being sampled. Soil results have returned values upto 6.4g/t Au and rock chips from quartz vein in BIF up to 9.3g/t Au. Uranium Exploration The Company's high priority target, the Lovetta anomaly which comprises an areaof 160 km2, has been soil sampled on a 50 m by 800 m spacing over a 17 km by 5km area and surveyed using a hand held Scintillometer. The survey resultsreceived show a 7 km by 1 km area greater than 220 counts per minute with a peakof 1,200 counts per minute. This area is currently being infilled with a 25 m by100 m spaced grid, which totals 59 km of Scintillometer survey lines combinedwith geological mapping and rock chip sampling of the radiometric anomalousareas. The core area is a high priority drilling target. Kimberlite Exploration As a result of the continued follow up sampling being undertaken in Sierra Leoneand the compiling of these results with the available aeromagnetic survey datathe Company has been able to refine its drilling target potential. Drilling hasnow commenced and the Company is pleased to be able to announce the discovery ofa kimberlite in the south west of the country in the Lake Popei project area. To date 800 m of core drilling has been completed over a number of drilltraverses resulting in the intersection of a primary kimberlite. Drilling isongoing to prove up the dimensions of this body. Samples from the first twokimberlite intersections have been dispatched to Mineral Services, anindependent laboratory in South Africa, where the mineral chemistry of thekimberlite will be analysed in order to assess the diamond potential of thisbody. This result is encouraging as, as far as the Company is aware, no knownkimberlite has previously been discovered in this part of the country. Elsewhere in the country 13 high priority aeromagnetic targets (with coincidentpositive kimberlite grains) and 10 high priority drainage targets have beendefined and these will form the basis of the kimberlite drilling programmeduring the next six months. In addition detailed follow up soil sampling fromanother 34 positive drainages has been undertaken and it is anticipated that onreceipt of sampling results by the Company further drilling targets may bedefined. Commenting on the exploration update, Mr Frank Timis, Executive Chairman of SLDCsaid: "We are very pleased with the initial results from all our exploration projectsand are particularly encouraged by the progression of both iron ore projects.The results are the beginning of the Company's strategy to be a diversifiedminerals producer on the African continent." Enquiries: Sierra Leone Diamond Company Tel: +44 (0) 20 7849 3002Frank TimisJamie Alpen Canaccord Adams Limited Tel: +44 (0) 20 7050 6500Mark AshurstMike Jones Citigate Dewe Rogerson Tel: +44 (0) 20 7638 9571Media enquiries: Martin Jackson / Kate DelahuntyAnalyst enquiries: Scott Fulton Notes: The information in this report that relates to Iron Ore Exploration Results,Mineral Resources and / or Ore reserves is based on information compiled byMathew Cooper of Resource Potentials, an independent geophysical consultinggroup, and G V Ariti of J Ariti and Associates Pty Ltd, an independent projectmanagement and metallurgical consultancy who are technical consultants who meetthe requirements as qualified persons for the purposes of the AIM Guidance Noteon Mining, Oil and Gas dated March 2006 in terms of the iron ore industry.Mathew Cooper is a Member of the Australian Society of Exploration Geophysicistsand G V Ariti is a Member of The Australasian Institute of Mining andMetallurgy. The information in this report that relates to Diamond Exploration Results,Mineral Resources and/or Ore reserves is based on information compiled by P IYoung, Pr. Sci Nat (reg. No 400270/05), who is a Member of the GeologicalSociety of South Africa. Paul Young is a full-time employee of the Company andmeets the requirements as a qualified person for the purposes of the AIMGuidance Note on Mining, Oil and Gas dated March 2006 in terms of the diamondindustry. The information in this report that relates to Base Metals, Gold and UraniumResults, Mineral Resources and/or Ore reserves is based on information compiledby Alexander Meyer, who is a Member of The Australasian Institute of Mining andMetallurgy. Alexander Meyer, VP Base Metals and Gold Exploration is a full-timeemployee of the Company and meets the requirements as a qualified person for thepurposes of the AIM Guidance Note on Mining, Oil and Gas dated March 2006 interms of Base Metals, Gold and Uranium exploration. It should be noted that potential quantities in this report are conceptual innature and insufficient exploration has been undertaken to define a MineralResource and it is uncertain if further exploration activities will result inthe determination of a Mineral Resource. Some statements in this news release are forward looking and therefore involveuncertainties 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 Companydisclaims any obligation to update forward looking statements. This information is provided by RNS The company news service from the London Stock Exchange