GRN.L Regulatory News (GRN)

19 Oct 2005 07:01

Gravity Diamonds Limited19 October 2005 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 19 October 2005 GRAVITY STARTS MAJOR DRILLING PROGRAMME TO TEST 30 DIAMOND TARGETS IN THE DRC • Helicopter support flies in portable drilling rig to carry out the testwork • 'Terrain promises exceptional chance for diamond discoveries' • Surface texture of garnets found suggests original source in close proximity Dual ASX/AIM-listed Gravity Diamonds Limited reports diamond drilling hasstarted on a major programme to test up to 30 magnetic anomalies fordiamondiferous kimberlites as part of its Kasai Diamond Project in theDemocratic Republic of Congo. The targets in Kananga - a district showingextensive alluvial workings by local artisanal miners - were generated throughregional sampling giving positive indicator results and followed up by anaeromagnetic survey between April and September this year. Site preparationshave been ongoing for the past months to ensure safe access for thehelicopter-borne operations. The portable diamond drilling rig has been contracted for the Kasai project fromGeosearch International in Johannesburg, South Africa. The first target beingtested is LUMAGO13 with the full programme expected to be completed early in theNew Year. Gravity's operations are based in the town of Demba, north of Kananga. The magnetic targets occur in several clusters within the 6,000 square kilometresurvey area on the Luebo Project and have been prioritised according to size,their location with respect to positive indicator mineral sample sites,closeness to artisanal workings and their accessibility. Drilling has been calculated to a target depth of between 90 metres and 170metres based on geophysical data and is consistent with the implied depth ofbasement in most of the area surveyed. Mr Phil Harman, Gravity's MD and an experienced geophysicist and explorationmanager, commented today: "The DRC has been a neglected area in the search fordiamonds. Yet I believe the diamond terrain and the magnetic targets we havepinpointed and are now testing represent one of the best chances for a majordiamond discovery anywhere in the world today. Certainly it is the best bet Ihave seen in my 30 years in the business. But we still need Lady Luck on ourside," he reflected. In 2004, Gravity carried out a regional kimberlitic indicator mineral (KIM)sampling programme over an area of 17,000 square kilometres of the Kasai.Resulting from this exercise, a 6,000 square kilometre area was identified whichreturned numerous sites with positive KIM results including pyrope garnets andkimberlitic ilmenites. Many were coarse grained and retained original surfacetextures, indicating that they were recovered from locations close to source.Numerous diggings by artisanal miners in the rivers throughout the area werealso noted during the sampling programme. Exploration in Kasai is being carried out under the terms of the August 2004Framework Agreement with BHP Billiton which has defined rights to buy backcontrol and management of any discovery at an early stage but on termsfavourable to Gravity. Further Information: Phil Harman, Managing Director, Gravity Diamonds Ltd. Tel: 00-61-3-9909-7655Elisa Bartlett, Assistant to the Managing Director, Gravity Diamonds Ltd. Tel:00-61-3-9909-7655 Ron Marshman/John Greenhalgh, City of London PR Ltd. Tel: 020-7628-5518 This information is provided by RNS The company news service from the London Stock Exchange