GRN.L Regulatory News (GRN)

21 Oct 2005 07:01

Gravity Diamonds Limited21 October 2005 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 21 October 2005 FURTHER ENCOURAGEMENT AT ABNER RANGE IN NORTHERN TERRITORY • Loam sampling of FALCON(R) gravity targets return kimberlitic chromites • Ground geophysical surveys to delineate targets prior to drilling have commenced • Processing of ABN 021 RC drilling samples ongoing AIM-ASX listed Gravity Diamonds Limited continues to receive positive resultsfrom exploration at Abner Range in the Northern Territory, Australia. Resultsfrom exploration to the immediate north of ABN 021 have identified a number ofFALCON(R) gravity targets with indicator minerals of similar chemistry andtenor to the discovery pipe. DISTRICT EXPLORATION - ABNER RANGE Kimberlite targets previously inaccessible to vehicles which had been identifiedfrom initial analysis of the FALCON(R) gravity survey have now been sampled.The targets sit in a sand-covered valley 0.8 to 3.5 kilometres north of the ABN021 kimberlite. Indicator mineral results are now finalised (Figure 1). A number of gravitytargets have returned significant kimberlitic chromite counts from 40-50kilogram, -1.6mm loam samples. "Significantly," states Mr Phil Harman, Gravity's managing director "the mineralchemistry of these chromites is similar to that observed in loam samples fromdirectly above the ABN 021 kimberlite and a similar dispersion pattern away fromthe source kimberlite could also be expected." The FALCON(R) gravity targetsupon which the samples were taken are of similar amplitudes and dimensions tothat produced by the ABN 021 kimberlite. "This is the first targeted loam sampling in this area and Gravity is highlyencouraged by the results. Ground geophysical surveys have commenced todelineate targets and to optimise drill testing," Mr Harman added. /2 GRAVITY DIAMONDS 2 ABN 021 - PROGRESS UP-DATE Samples are continuing to be processed from the fifteen 5 1/2 inch RC drill holeprogramme (927 metres) completed at ABN 021 during July. This programme wasdesigned to both delineate the margins of the kimberlite and to obtain materialfor diamond recovery testwork. Sample recoveries were variable with high waterflows, extensive soft kimberlitic clays and deep weathering (to >75 metresdepth) limiting sample return and prematurely terminating a number of holes. Alldrill hole samples have been sent to Diatech Laboratories, Perth for processingthrough a micro-DMS plant with all material between 0.3 to 6.0mm in diameterobserved. No crushing or reprocessing of oversize material or DMS tailings hasbeen undertaken. Processing and observation of drill hole samples is ongoing andresults will be reported once further data has been received and evaluated. The programme at Abner Range is being carried out under the terms of anExploration Agreement with Rio Tinto Exploration Limited. The information in this report that relates to Exploration Results is based oninformation compiled by Gravity Diamonds Limited's Managing Director, PhillipHarman BSc (Hons), who is a member of The Australasian Institute of Mining andMetallurgy. Mr Harman has sufficient experience which is relevant to the styleof mineralisation and type of deposit under consideration and to the activityundertaken. He is qualified as a Competent Person as defined in the 2004 Editionof the "Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves". Mr Harman has consented to the inclusion of thisinformation in the form and context in which it appears in this report. 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:00-61-3-9909-7655Ron Marshman/John Greenhalgh, City of London PR Ltd. Tel: 020-7628-5518 Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/9785s_-2005-10-21.pdf This information is provided by RNS The company news service from the London Stock Exchange