GRN.L Regulatory News (GRN)

27 Jul 2005 07:01

Gravity Diamonds Limited27 July 2005 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 27 July 2005 ASX & AIM-LISTED GRAVITY RECOVERS DIAMONDS FROM FIRST HOLE IN ABNER RANGE FOLLOW-UP DRILLING • One 0.147ct macrodiamond recovered• Two diamonds greater than 0.3mm in size• Fine fraction of samples still to be tested for micro-diamonds• Results from two further holes expected shortly Gravity Diamonds Limited is pleased to announce that three diamonds greater than0.3mm in size have been recovered from drill hole ARC 015, the first analysedfrom the company's recently completed 15 hole RC programme to define the extentof the ABN 21 kimberlite pipe in the Abner Range of Australia's NorthernTerritory and give some guide to its potential grade. Gravity managing director Mr Phil Harman said that, although it is not possibleto draw any firm conclusions about the grade of the kimberlite from this limitedresult, "the recovery of a larger diamond of good quality from such a limitedsample is highly encouraging". ARC 015 penetrated 10 metres of younger cover rocks and reached a final depth of25 metres. It was sited within the pipe, approximately 60 metres southeast ofdiscovery hole ARC 03 drilled at the beginning of this year. Gravity, listed in Australia and quoted on the AIM market in London, reportsthat analysis was carried out on sample bulked over five metre intervals downhole. Samples weighed were between 100 and 145kg. Three diamonds were recoveredfrom ARC 015 in the two samples between 15 and 25 metres depth, the largestbeing a 0.147ct mostly colourless stone with a green tinge measuring 3.6mm by3.0mm by 1.6mm. The other two diamonds were of similar colour with dimensions of0.35mm and 0.40mm respectively. The remaining sample fraction (< 0.3mm) fromthis hole will be submitted for microdiamond analysis. Two further holes (ARC013 and ARC 023) are currently being evaluated for diamonds greater than 0.3mmin size, with results expected shortly. The Abner Range targets were identified by a FALCON(R) survey, the airbornegravity system developed by BHP Billiton and under an agreement with BHPBilliton. The ABN 021 kimberlite discovery resulted from first-pass drilling of a FALCON(R) target, with 147 microdiamonds and two small macrodiamonds recovered fromtwo shallow holes drilled in January. Almost all the stones are whole,colourless and of potential gem quality. Exploration of the Abner Range tenement is being carried out under the terms ofa previously announced exploration agreement with Rio Tinto Exploration Pty Ltd. 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 This information is provided by RNS The company news service from the London Stock Exchange