AMI.L Regulatory News (AMI)

19 May 2005 07:02

Sierra Leone Diamond Company Ld19 May 2005 For immediate release 19 May 2005 Sierra Leone Diamond Company ("SLDC" or "the Company") The Directors of Sierra Leone Diamond Company (AIM:SLD) today issues thefollowing operational update. • SLDC's Kimberlite exploration program has produced results that are encouraging • Close spaced drilling of the paeleo channels in the Sewa River alluvial gravel deposits continues to underline the Company's decision to explore this area • A recent strategic review of the Company's activities indicate sufficient cash reserves until end of 2006 Exploration Activity In an area of the Company's northern Sierra Leone properties, which has beensubject to an intensive alluvial diamond rush since 2004, the systematicexploration program has successfully located and identified a discrete, linearilmenite soil anomaly in close proximity to the alluvial diamond miningactivity. Recent shallow auger drilling has intersected very weathered materialthat contains significant quantities of unweathered, angular picro-ilmenite. The Company is very encouraged by these results as this is the very firstindication of a potential bedrock source of diamonds for the alluvial mining inan area with no previous record of primary kimberlites. Continuing exploration will be aimed at extending the strike length of theilmenite soil anomaly and testing the auger drill results with pitting and thendrill testing this exciting target. Sewa River alluvial prospecting Close spaced reverse circulation drilling of the alluvial deposits along theSewa River continues to build towards a better understanding of this mineraldeposit. This drilling program is designed to demarcate an alluvial mineral deposit areathat will be sampled by the Dense Media Separation (DMS) diamond recovery plantthat will be commissioned by end of June 2005. Strategic review completed A planning session was recently held with the senior management staffin-country, the key results of which are as follows: • Detailed budgetary planning session indicates that the Company has sufficient funds until end of 2006 • SLDC continues to have good relationships with the Government and local people of the country • SLDC has recruited an excellent team with a positive attitude who are committed to delivering results for the Company Commenting on the review of SLDC's activities David Claxton, President and ChiefExecutive Officer said: "In a recent visit to Sierra Leone with the Chief Financial Officer we haveconfirmed that the Regional Exploration Program and Sewa River AlluvialExploration Operation were making excellent progress to deliver results on timeand within budget." For further information please contact:Sierra Leone Diamond Company 020 7917 6245David Gadd-Claxton, Chief Executive OfficerMartin Dunham, Chief Financial Officer Buchanan Communications 020 7466 5000Bobby MorseBen Willey This information is provided by RNS The company news service from the London Stock Exchange