EVE.L Regulatory News (EVE)

21 May 2007 12:00

Everfor Diamonds PLC21 May 2007 AIM: EVE PRESS RELEASE May 21, 2007 Everfor Diamonds plc Exploration and Operations Update and Director Changes-------------------------------------------------------------------------------- The directors of Everfor Diamonds plc ('Everfor', or the 'Company') (AIM:EVE)are pleased to advise the latest exploration and operations activities of theCompany's search for world class diamondiferous deposits within its fourlicences in the Kola Peninsula, northwest Russia. Summary of Significant Results • 5,186 of a total 6,645 samples collected have been examined • Drilling re-commenced in the Ermakovskaya licence during March 2007 with 72 holes drilled, totalling 771 metres • Four anomalies were drilled in the Pulongskaya licence, totalling 141 metres, in March 2007 • Interpretations and reviews of 5,200km2 of airborne geophysical surveying data are underway to produce targets for follow-up drilling Exploration for diamonds in 2006 comprised sampling and drilling in three of thecompany's licences and airborne geophysical surveying in one. The drillingprogramme was suspended in October 2006 due to the onset of winter andrecommenced in March 2007 although the spring thaw has now halted this work. Nokimberlites have yet been located. Initial interpretations are now available forthe airborne magnetic survey flown in the Tulomo-Teriberskaya licence late in2006. Licence Samples Drilled targets/metres Geophysical survey (km2)Pulongskaya 0 14/389 0Varzugskaya 635 0 0Ermakovskaya 132 86/1303 0Tulomo-Teriberskaya 311 3/68 1,740 Totals 1,078 103/1860 1,740 Sample Results Five thousand one hundred and eighty six of the total 6,645 samples collectedbetween 2004 and 2006 have been examined to date. Of that number, 464 samples(9.1%) contain one or more of the 1,555 visually identified KIM grains. A number of these grains have undergone only minimal abrasion since theirrelease from their host rock, indicating a nearby source or that the grains weretransported in subsequently weathered boulders. The mineral chemistry trendsdisplayed indicate large numbers of KIMs of low interest with a number ofdiscrete areas of superior interest, principally within the Pulongskaya andTulomo-Teriberskaya licences. Drilling Results Drill holes were sited where there was a congruence of good KIM results andgeophysical anomalies, either magnetic or electromagnetic. Drilling was carriedout in all of the licences except for Varzugskaya where there is littleavailable geophysical data. Drilling progress in 2006 was boosted by the provision of two lightweight,portable units, together with appropriate support vehicles by the Company'sdrilling contractor. This allowed drilling to begin at the end of May andcontinue throughout the summer months. Approximately 1,800 metres has been drilled, both on recently generated targetsand on selected targets from previous work which had not been investigated. Nokimberlites have been intersected to date, although the sources of the majorityof the geophysical anomalies were explained satisfactorily by the rocksencountered. Results of Geophysical Surveying High resolution magnetic and electromagnetic surveys totalling 3,450km2 wereflown in 2004 in the Pulongskaya, Ermakovskaya and Tulomo-Teriberskaya licences.In 2006, 1,750km2 of airborne magnetic surveying was carried out in theTulomo-Teriberskaya licence and initial interpretations of the data have beenreceived. Data interrogation generated numerous geophysical anomalies which resemble thoseexhibited by kimberlites. The anomalies were then ranked for follow-up work on anumber of criteria, including the levels of interest exhibited by nearby KIMgrains. As results of the drilling programmes became available, this data was fed backto refine the process of selecting (in particular) magnetic anomalies. Thisprocess is almost complete and a revised selection of anomalies will begenerated for follow-up work, in conjunction with new and future sample results. Director Changes Mr John Barry Hawthorne, non-executive director of Everfor has announced hisintention to resign from the Company effective from 21 May 2007 to pursue otherinterests. Barry Hawthorne has been a non-executive director of Everfor Diamondssince July 2005 and provided key technical governance of the Company'sexploration of the Kola Peninsula licences. Prior to joining Everfor, Barry Hawthorne held the position of Deputy TechnicalDirector, with Anglo American Corporation of South Africa / De Beers, until hisretirement in 1997. During the 1970's he championed an in-house scientificcentre of excellence within De Beers, with the mandate to increase theunderstanding of kimberlite genesis, emplacement and classification. Donald Duncan, Managing Director of Everfor Diamonds commented: "In addition to Barry's vast industry knowledge and contacts, hishighly-respected insights into diamond exploration research brought considerablebenefit to the Company, for which we are extremely grateful. We wish Barry wellin his new endeavours." "Regarding the Company's 2007 operations, despite the acquisition of newdrilling equipment, drilling progress has been slower than expected and it isdisappointing that no new kimberlites have yet been intersected. Sample resultscontinue to be received, many of which continue to reinforce the probability ofundiscovered kimberlites within the licence areas. The Company is regularlyreviewing all data to better understand the relationships between KIMs,geophysical anomalies and ice transport directions." ENDS------------------------------------------------------------------------------- Notes to Editors: Everfor Diamonds plc was formed in January 2004 with the specific intention ofexploring in the Russian Federation. This was based upon a positive technicalassessment by the then geological consultant (now Managing Director), whichhighlighted the untapped potential of the Kola Peninsula. The extensive networkof contacts available to the Executive Chairman allowed swift applications forground to be made and four licence areas for diamond prospecting were granted.The Pulongskaya and Ermakovskaya licences contain core areas whereclose-interval sampling and some geophysical surveying has taken place byprevious explorers. Two known kimberlites are located in the Ermakovskayalicence.-------------------------------------------------------------------------------- For further information please contact: Donald Duncan, Managing Director, Everfor Diamonds plc Tel: +44 (0)20 7514 0590 Gavin Dallas, Marketing and PR, Everfor Diamonds Plc Tel: +44 (0)20 7514 0590 www.everfor.com-------------------------------------------------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange