AMI.L Regulatory News (AMI)

7 Jun 2007 07:01

Sierra Leone Diamond Company Ld07 June 2007 For immediate release 7 June 2007 Sierra Leone Diamond Company Limited ("SLDC" or "the Company") Third Diamond Sale from Alluvial Operations and Exploration Update Sierra Leone Diamond Company Limited (AIM:SLD), the diamond and mineralexploration and production company with interests wholly focussed on the countryof Sierra Leone, today announces the results of its third diamond sale of roughdiamonds sourced wholly from its alluvial operations in the Kono district ofSierra Leone and an update on its uranium and niobium exploration projects. Diamond Sale The Company engaged the services of Special Diamond Company Ltd, a subsidiarycompany of Overseas Diamonds NV ("OD"), to undertake the sale. The sale ofdiamonds, which attracted 14 buyers, was fully compliant with the KimberleyProcess Certification Scheme and the diamonds were sourced from production atthe Company's alluvial operation for the period 24 February 2007 to 4 May 2007.The sale result indicates that production during the period progressed towardssteady state levels. The Company sold 7,965.54 carats at US$504.25 per carat, realising gross saleproceeds of US$4,016,656.18. Details of the sale are as follows: Lot Size Description Number Carats Proceeds Proceeds number of stones US$/carat US$ 1 -7 ORIGINAL numerous 30.63 60.00 1,837.80 2 +7 Z WHITE 151 21.09 +9 Z WHITE 355 87.27 +11 Z WHITE 598 275.65 +7 to +13 Z WHITE 1,104 384.01 200.00 76,802.00 3 +7 MKB WHITE 59 7.63 +9 MKB WHITE 167 34.90 +11 MKB WHITE 511 215.60 +7 to +13 MKB WHITE 737 258.13 140.00 36,138.20 4 +7 MKB/CLV 149 19.71 +9 MKB/CLV 259 58.96 +11 MKB/CLV 403 182.88 +7 to +13 MKB/CLV 811 261.55 62.00 16,216.10 5 +7 CLV H 56 7.46 +9 CLV H 92 20.29 +11 CLV H 167 74.95 +7 to +13 CLV H 315 102.70 30.00 3,081.00 6 +7 CLV 32 4.28 +9 CLV 129 29.46 +11 CLV 288 121.78 +7 to +13 CLV 449 155.52 12.00 1,866.24 7 Cut I 3GR Z WHITE 130 98.28 4GR Z WHITE 98 102.71 5GR to 6GR Z WHITE 98 142.47 8GR Z WHITE 53 110.91 3GR to 8GR Z WHITE 379 455.37 560.00 255,007.20 7 Cut II 3GR Z WHITE 131 99.20 4GR Z WHITE 98 102.42 5GR to 6GR Z WHITE 98 141.90 8GR Z WHITE 53 111.47 3GR to 8GR Z WHITE 380 454.99 570.00 259,344.30 8 3GR MKB WHITE 155 118.75 4GR MKB WHITE 120 124.76 5GR to 6GR MKB WHITE 124 178.15 3GR to 6GR MKB WHITE 399 421.66 275.00 115,956.50 9 3GR MKB/CLV 152 116.86 4GR MKB/CLV 134 138.22 5GR to 6GR MKB/CLV 186 275.41 3GR to 6GR MKB/CLV 472 530.49 150.00 79,573.50 10 3GR to 10 Carat CLV H 161 261.74 70.00 18,321.80 11 3GR to 10 Carat CLV 130 249.88 27.00 6,746.76 12 Cut I 2.5 to 4 Carat Z WHITE 62 212.73 1,450.00 308,458.50 12 Cut II 2.5 to 4 Carat Z WHITE 62 213.28 1,400.00 298,592.00 13 Cut I 5 to 10 Carat Z WHITE 16 109.99 2,450.00 269,475.50 13 Cut II 5 to 10 Carat Z WHITE 17 116.30 2,266.00 263,535.80 14 8GR to 10 Carat MKB WHITE 131 411.43 800.00 329,144.00 15 8GR to 10 Carat MKB/CLV 211 669.57 570.00 381,654.90 16 +7 CTD 2,576 2,330.44 32.00 74,574.08 17 Cut I SPEC 9 159.45 2,885.00 460,000.00 17 Cut II SPEC 8 145.65 2,952.00 430,000.00 18 SPEC 1 30.03 11,000.00 330,330.00 7,965.54 504.25 4,016,656.18 (See glossary below for explanation of terms used in the above table) The sale included 18 'special' diamonds - specials being defined as thosediamonds greater than 10.8 carats. Glossary Description Meaning Explanation -7 Smaller than DTC sieve number 7 Stones smaller than 0.10 caratsZ WHITE Sawable white stones Stones from clean quality to SP 3. The general aspect of the lot is whiteMKB WHITE Makeable white stones Stones from clean quality to MKB 3. The general aspect of the lot is whiteMKB/CLV Makeable and cleavage Mixture of heavy-spotted sawable, low makeable and cleavage stonesCLV H Cleavage High Composed exclusively of third quality cleavage stonesCLV Cleavage Composed exclusively of fourth quality cleavage, board cleavage and board stonesCTD Coated stones Mixture of coated stones of lower quality, mainly near gems+7 to +13 From DTC sieve number 7 to 13 Stones larger than 0.10 carats and smaller than 0.65 carats3GR to 6GR From 3 grainers to 6 grainers Stones larger than 0.65 carats and smaller than 1.79 carats8GR to 10 Carat From 8 grainers to 2 carats Stones larger than 1.80 carats and smaller than 10.79 caratsSPEC Specials High quality stones larger than 10.80 carats SLDC has for the past 2 years been undertaking a country wide, multi elementanalysis of stream and till sediments, with a view primarily to determining hardrock sources of diamonds. However, as part of this major work programme, SLDChas also located several sites with a high potential of discovery for variousprecious, base and minor metals. The Company is pleased to report an update onits uranium and niobium exploration projects. Uranium Exploration Regional geochemical stream trap site sampling identified a 4,000 square kmarcuate zone of anomalous 5 to 30 parts per million (ppm) uranium resultsassociated with later Liberian granite bodies intruded into the Leonean gneissbasement. The arcuate uranium anomaly is approximately 30 km wide and begins atthe town of Koardu on the Guinea border, running parallel with the border forapproximately 70km in a north-north-westerly direction, before turning 70km inan east-westerly direction towards Kumala, a town located 20km to the south-eastof Tonkolilli. External to this 4,000 square km area, the background values are in the rangefrom 0 to 3ppm uranium. The smallest anomaly covers a 30 square km areaconsisting of a cluster of 5 sample points ranging from 5 to 20ppm uranium. Thetwo most significant anomalies are the 160 square km Lovetta anomaly comprising21 results ranging between 8 and 43ppm and the 240 square km Gertrude anomalythat consists of 18 results ranging between 10 and 30ppm uranium. The Lovetta anomaly centred on the village of Taindu is coincident with a 15 kmlong 4.2 km wide elongate Liberian granite intrusive emplaced into the Leoneanbasement. The actual area of anomalism is 22 km in length and 8km in widthcovering the elongate granite and surrounds. To date, approximately 500 soilsamples out of a 1,000 soil sample program have been collected of which 228 arebeing processed in SLDC Bo Laboratory in preparation for analysis at Ultra TracePty Ltd in Australia. Sampling is carried out on 800m line spacing and 100msample spacing. In conjunction with the soil sampling an orientationScintillometer survey is in progress to determine the optimum spacing. The Gertrude anomaly centred on the village of Weima is more diffuse andassociated with the margin of a Liberian intrusive. Twenty seven orientationstream sediment samples have been collected and dispatched to Ultra Trace. Theresults will determine the sample collection medium for the remaining 150 infillstream sediment samples that will be required in conjunction with orientationScintillometer surveys. The other 8 Uranium anomalies are smaller in area, often more diffuse and lowerin tenor but similarly associated with Liberian granite emplacements and willrequire follow up sampling and investigation. Niobium Exploration Approximately 25 km to the north-west of Farangbaya centred on the village ofSendugu another Liberian granite emplacement returned a Niobium anomaly. Niobiumcommonly occurs with Colombite-Tantalite the source for Tantalum. This 21 kmwide and 23 km long north-easterly trending anomaly drains the north-easternpart of the granite pluton. The anomalous zone covered 15 stream sediments thatare over 0.8 ppm Niobium against a background of less than 0.2 ppm Niobium.Small scale operators are currently mining alluvial Colombite-Tantalite in thevicinity. This anomaly covers an area of 160 square km that requires infillstream sediment sampling and field investigations. Enquiries: Sierra Leone Diamond Company Tel: +44 (0) 1442 257 246Frank TimisJamie Alpen Canaccord Adams Limited Tel: +44 (0) 20 7050 6500Mark AshurstMike Jones Buchanan Communications Tel: +44 (0) 20 7466 5000Bobby MorseBen Willey Notes: It should be noted that potential quantities in this report relating toexploration results are conceptual in nature and insufficient exploration hasbeen undertaken to define a Mineral Resource and it is uncertain if furtherexploration 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