Gem Diamonds Di Regulatory News (GEMD)

25 Oct 2007 12:00

Gem Diamonds Limited25 October 2007 News Release25 October 2007 GEM DIAMONDS' GOPE PROJECT IN BOTSWANA HAS SUSPENSION OF RETENTION LICENSE LIFTED • Suspension of Gope Retention License lifted • Feasibility Study and Environmental Impact Assessment to be updated • All interested and affected parties to be consulted Gope Exploration Company (Pty) Limited (Gope), a 100% held subsidiary of GemDiamonds Limited (Gem Diamonds), today announces that the Government of theRepublic of Botswana has lifted the suspension of the Retention License over theGope area. Work has begun on the updating of the Feasibility Study, which was completed in1998. The Environmental Impact Assessment (EIA) and subsequent EnvironmentalManagement Plan will commence shortly. As part of the EIA process allinterested and affected parties will be consulted by Gope's independent advisorsMarsh Vikela (Pty) Limited. Should the findings of this updated FeasibilityStudy prove positive, an application for a Mining License will be made in duecourse. For further information: Gem Diamonds LimitedClifford Elphick+44 203 043 0280 Gem Diamond Technical Services (Pty) LimitedAngela ParrTel: +27 11 560 9600 Pelham PRCandice SgroiTel: +44 207 743 6376 About Gem Diamonds Gem Diamonds is a diamond mining company with a balanced portfolio of aproducing kimberlite mine, two producing alluvial mines, development projectsand long term prospects. Established in July 2005, Gem Diamonds is pursuing anaccelerated growth strategy and aims to become one of the world's leadingdiamond companies. Gem Diamonds currently has one producing kimberlite mine, Letseng, in Lesotho, two producing alluvial mines - Cempaka in Indonesia andMbelenge in the Democratic Republic of Congo (DRC), a kimberlite developmentproject in Botswana, two development projects in the DRC, one in the CentralAfrican Republic and an option to develop the Chiri kimberlite concession inAngola. The Company recently made an offer to Kimberley Diamond Company's shareholdersto acquire their shares in this company, which owns the Ellendale Mine in northWestern Australia, and which was approved by Gem Diamonds' shareholders at anExtraordinary General Meeting on 16 October 2007. Gem Diamonds currently has a specific focus towards higher value diamonds, asegment of the market that its management believes will deliver superior longterm returns. For further information about Gem Diamonds visit www.gemdiamonds.com. About Gope Gope was formed in 1985 when exploration work over the area first commenced.Work on Gope was subsequently adjourned until the mid 1990's when a prefeasibility study was undertaken. A feasibility study was concluded thereafter. Gope currently holds a Retention License over the concession area which islocated in the Central Kalahari Game Reserve (CKGR) in central Botswana. TheGope Retention License area is 35km2 relative to the size of the reserve whichis 52, 800km2. The Government of the Republic of Botswana has indicated itsintention to allow mining in the CKGR. This information is provided by RNS The company news service from the London Stock Exchange