AMI.L Regulatory News (AMI)

17 Nov 2006 07:00

Sierra Leone Diamond Company Ld17 November 2006 For immediate release 17 November 2006 Sierra Leone Diamond Company Limited ("SLDC" or the "Company") Confirmed kimberlitic grains from sampling results from the Lake Popei Exclusive Prospecting Licence Sierra Leone Diamond Company Limited (AIM: SLD), the diamond company withlicence interests wholly focused in the country of Sierra Leone, announcessampling results from the Lake Popei Exclusive Prospecting Licence. Following the granting of the Lake Popei Exclusive Prospecting Licence (EPL 010/06), in September 2006, SLDC is pleased to be able to announce the firstsampling results from this 54.32 km(2) licence area. This licence is located inthe low lying south western coastal area of the country and consists ofextensive swamps with little high ground. A total of 20 samples were taken in the field along two drainages - furthersampling being prevented by local field conditions. These samples weredispatched to the Bo laboratory where abundant amounts of visually kimberliticilmenites were recovered and stripped from the sample concentrates. In one casea count of over 3,000 ilmenite grains were recovered and in all but one of thesamples visually kimberlitic ilmenites were recovered. The presence of coarseilmenite grains and the comparatively un-abraded surface textures of thesegrains indicate a proximal source rock (in-house interpretation). 599 of these ilmenite grains were dispatched to Mineral Services Laboratories inCape Town South Africa (an independent ISO 17025 certified laboratory whichspecialises in services for the diamond exploration industry) for mineralchemistry analysis to confirm the in-house visual results. The results of this analysis have been received and confirm that these grainsare derived from a kimberlite source rock. All but one of the ilmenite grainshave been classified as kimberlitic in origin. Although no direct inference can be made from the presence of these grains tothe potential diamond content of the source rock nor overall size of any target,SLDC is highly encouraged by these positive results from an area with knownprevious small diamond production but no previously documented kimberlite sourcerock. As soon as local conditions allow, a detailed follow-up campaign will commencewith the aim of generating drill targets and bulk sampling. For further information, please contact: Sierra Leone Diamond Company Limited 01442 257 246David Gadd-Claxton, Chief Executive OfficerGordon Stein, Interim 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