GRN.L Regulatory News (GRN)

21 Jul 2005 07:01

Gravity Diamonds Limited21 July 2005 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 21 July 2005 GRAVITY DEFINES HIGHLY PROSPECTIVE DIAMOND AREA ON CONGO (DRC) TENEMENTS AFTER FINAL ANALYSIS OF KASAI SAMPLES • Indicator Minerals Point To Nearby Diamond-Bearing Kimberlitic Source • Gem Quality Stones Recovered From Several Sample Sites • Follow-Up Area Includes Sections of Extensive Alluvial Diamond Mining Activity AIM and ASX-listed Gravity Diamonds Limited announces that it has defined ahighly prospective area within its Kasai Craton diamond project in theDemocratic Republic of Congo from final results of its 2004 kimberliticindicator mineral ("KIM") sampling programme. Within the 17,000 squarekilometres of the Luebo area covered by stream sediment sampling, some 7,000square kilometres have been defined for follow-up work including regions ofextensive alluvial diamond mining. The area is currently being flown by thepreviously announced detailed aeromagnetic survey, with results due early nextmonth. Microprobe analysis of the KIMs, which include pyrope garnets, orange garnets,picro-ilmenites and chromite grains, shows that a significant number of thepyrope garnets are of the G10 category. These are believed to be an excellentindicator of diamond-bearing kimberlite pipes, states Gravity. In addition, most of the identified KIMs are from the medium-coarse grained(0.425mm-2mm) fraction of the samples and many have their original surfacetexture preserved. This combination of grain size and surface texture indicatesthey have been subject to very little abrasion (i.e. transport) and, in alllikelihood, are close to their kimberlitic source, the company adds. Gravity also reports that 18 macrodiamonds (>0.425mm) have been recovered from15 separate sampling sites. About 40 percent of the stones are white, colourlessand with little or minor inclusions and fractures. Many have well-developedcrystal shapes. "This confirms anecdotal evidence from local artisanal miners that diamondsrecovered in the area are of highest gem quality and is an indication of thepotential of any kimberlitic pipes discovered in the region to carry gem qualitydiamonds", comments managing director Mr Phil Harman. These results reinforce the company's initial report on the 2004 Kasai samplingprogramme earlier this year, when Gravity commented that finding garnets at somany sites at such an early stage in exploration was more meaningful than thepresence of macrodiamonds. The garnets are more likely to have been recycledfrom kimberlite pipes than younger formations, the company stated, whereas thediamonds, because of their extreme hardness, can survive all manner of recyclingand do not necessarily indicate a kimberlite source in the vicinity. /2 GRAVITY DIAMONDS 2 Gravity says the aeromagnetic survey, which commenced in April, has beenslightly modified to cover additional areas with positive KIM results which werenot included in the original plan. Although the full data set from the survey isnot expected until August, preliminary analysis of early results has revealed anumber of potential kimberlite targets and planning is underway for follow-updrilling before year-end, it adds. "Results from the 2004 programme are highly encouraging and confirm our strategyof rapid, broad-spaced regional sampling to define "hot" areas in thisunder-explored terrain. We are looking forward to the early results of theaeromagnetic survey so we can focus on target testing", says Mr Harman. Gravity is earning a 100 percent interest in the tenements from BHP Billiton whoretains a right to buy back control of any discovery under terms favourable toGravity as previously disclosed to the market. 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