AMI.L Regulatory News (AMI)

28 Sep 2006 16:31

Sierra Leone Diamond Company Ld28 September 2006 For immediate release 28 September 2006 Sierra Leone Diamond Company Limited ("SLDC" or "the Company") Operational update Sierra Leone Diamond Company Limited (AIM:SLD) the diamond exploration companywholly focused on the country of Sierra Leone, is pleased to announce theresults of mineral indicator picking from samples recently collected in theSouth Western portion of the Company's prospecting licenses in Sierra Leone. Theresults show the presence of kimberlitic ilmenites which might suggest a nearbyprimary kimberlite ore body, based on primary surface textures and the abundanceof coarse grains. Company geologists initially identified several prospective heavy mineral trapsites, and used stream sediment sampling and pan concentrate sampling in thefield to follow the terrain over stream features to explore for potentialsources of kimberlite. That process led to the acquisition of 11 stream sedimentsamples and nine pan concentrate samples over two proximal stream features witha sample interval (determined by topography as opposed to being on a grid) ofapproximately 60m between samples. In progressing upstream from the originalsite, the ilmenite grain count in individual samples increased from 9 grains toover 100 grains per sample as one of the streams was followed 500m upstream(ilmenite grain count is stopped once the count reaches 100 as significance isnot enhanced beyond that level). In the second stream, the grain count increasedfrom 20 to over 100 counts per sample over a 700m stretch. Interpretation ofthese results suggests a two kilometre NE trending kimberlitic ilmenite grainanomaly. The low lying topography of the area and the nature of the grainsindicate the potential for a sizable discrete proximal kimberlite source. TheDirectors believe that no other previously recorded kimberlite exists in thisimmediate area and that this anomaly could possibly indicate the presence of anew potential diamond source. SLDC has arranged for representative grains from the samples recovered by SLDCstaff to be externally verified (both visual and micro-probe confirmation) byMineral Services Laboratories in South Africa. These laboratories have a longassociation with the diamond exploration industry having been founded by Dr.John Gurney, a leading independent researcher in kimberlite geochemistry. The Company is actively perusing an intensive follow-up program with a view toidentifying and delineating the kimberlite source by drilling and bulk sampling. For further information please contact: Sierra Leone Diamond Company Limited 44 (0) 1442 257246 David Gadd-Claxton, President and Chief Executive OfficerGibril Bangura, Director and General Manger Buchanan Communications 020 7466 5000Bobby MorseBen WilleyNick Melson Notes: 1. The kimberlitic ilmenites indicators were identified by SLDC's mineral analyst Ms. Primrose Isa, who has a total of 13 years experience working as a mineral sorter and analyst in kimberlite indicator laboratories with De Beers and Rio Tinto and has completed those companies' courses on kimberlitic indicator visual classification and both Category 1 and 2 indicator grain surface textures. The kimberlitic ilmenite grains were examined by SLDC's principal geologist Mr. Ian Tomlinson. Ian is an experienced kimberlite exploration geologist, having spent some 17 years with De Beers. He holds a geology degree from the University of Port Elizabeth and has significant experience in all aspects of kimberlite exploration in varying terrains, having been responsible for the discovery of many kimberlites in Tanzania. 2. The information herin that relates to Exploration Results, Mineral Resources and or Ore reserves is based on information compiled by SLDC's Vice-President, Exploration, Paul Young, Pr. Sci Nat (reg.No 400270/05), who is a Member of the Geological Society of South Africa. 3. It should be noted that potential quantities in this report are conceptual in nature and insufficient exploration has been undertaken to define a Mineral Resource and it is uncertain if further exploration activities will result in the determination of a Mineral Resource. This information is provided by RNS The company news service from the London Stock Exchange