GRN.L Regulatory News (GRN)

29 Sep 2006 07:00

Gravity Diamonds Limited29 September 2006 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 29 September 2006 GRAVITY'S FIELD CREWS BACK IN DRC DIAMOND SEARCH FOLLOWING PRESIDENTIAL ELECTIONS - Lab results from past sampling program give focus to four main "hot" areas - Infill sampling commences on Luebo Block - centre of widespread alluvial mining by locals ********************************************************** Following presidential elections in the Democratic Republic of Congo ("DRC") anda A$5 million placement, Gravity Diamonds Limited field crews have recommenceddiamond exploration on the Kasai Craton. Infill sampling will initially focus onthe Luebo area, which has been the subject of widespread alluvial diamond miningby artisans and where Gravity continues to obtain encouraging results. Three teams have started work and will be built up to a maximum of eight teamsover the coming two months. The program in Luebo is anticipated to provide afurther 400 samples in the high priority part of the block of tenements. Resultsfrom the program will be available towards the end of the year. During the break in Gravity's field operations, laboratory results from all pastkimberlitic indicator mineral ("KIM") sampling programs were received anddetailed interpretations carried out. This has given Gravity four main projectareas to focus activities and find targets: Luebo, Penge, Maniamuna and Gungu.This is in line with the company's strategy of using broad spaced regional KIMsampling to identify "hot" areas for more detailed follow-up and targeting. The Luebo group of tenements has returned encouraging results from the drillingprogram completed during the year, states Gravity. A total 24 magnetic basementtargets were tested over a broad area covering 7,000 square kilometres. Thetargets intersected were non-kimberlitic but core samples taken from theoverlying sedimentary rocks returned positive indicator minerals in specificareas. In two holes, LUMAG 64 and 101, indicator minerals occurred along withhighly weathered olivine-bearing ultramafic volcanic fragments. Gravity says the overlying sedimentary rocks were laid down during the UpperCretaceous period some 65-80 million years ago, when the dominant volcanic eventwas the emplacement of kimberlite pipes, including those at the diamondproducing Mbuji Mayi. "Although the volcanic fragments are too weathered to be positively identifiedas kimberlitic, this result, along with the occurrence of KIMs in restrictedareas in the overburden rather than being widely distributed across the area,encourages the company to believe that the results indicate close proximity tokimberlite pipes. Detailed infill sampling is warranted to prioritise amongmagnetic anomalies prior to further drilling," adds Gravity. Fieldwork will consist mainly of detailed foot traversing and sampling frommobile tent camps. A helicopter will be used to position people and equipment inthe field and to ferry out samples. Gravity's Kasai exploration program is being carried out under the terms of aFramework Agreement with BHP Billiton and various option agreements with otherlocal companies. The information in this release has been compiled and reviewed by GravityDiamonds Limited's Managing Director, Phillip Harman BSc (Hons), who is a memberof The Australasian Institute of Mining and Metallurgy. Mr Harman has sufficientexperience which is relevant to the style of mineralisation and type of depositunder consideration and to the activity undertaken to be a qualified person forthe purposes of the AIM Guidance Note for the Mining and Oil and Gas Companiesissued on 16 March 2006. Further Information: Phil Harman, Managing Director, Gravity Diamonds Ltd. Tel: +61-3-9909-7655 Elisa Bartlett, Assistant to the Managing Director, Gravity Diamonds Ltd. Tel: +61-3-9909-7655 Ron Marshman/John Greenhalgh, City of London PR Ltd. Tel: 020-7628-5518 www.gravitydiamonds.com.au This information is provided by RNS The company news service from the London Stock Exchange