GRN.L Regulatory News (GRN)

26 Apr 2005 07:18

Gravity Diamonds Limited26 April 2005 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) APRIL 26, 2005 GRAVITY RESUMES DIAMOND EXPLORATION AT ABNER RANGE IN NORTHERN TERRITORY, AUSTRALIA • Initial focus on ABN21 diamondiferous kimberlite discovery • "High-priority" targets identified nearby will also be sampled • Full follow-up programme as ground conditions permit access Melbourne-based Gravity Diamonds Limited, which completed a dual-listing on AIMearlier this month, today announces that a helicopter-supported field programmecommenced late last week on its ABN21 diamondiferous kimberlite discovery in theAbner Range, near McArthur River in the Northern Territory of Australia. Adetailed ground gravity survey and geological mapping will be carried with theinitial objective of outlining the potential shape and size of the kimberlitebody to enable the company to plan more detailed test drilling and bulksampling. A further 28 targets within a 10km radius of the ABN21 discovery will also bemapped and sampled. Some of these were previously identified as being of"particularly high priority" but could not be accessed in the 2004 field season.Others have been identified as a result of a review and consolidation of datafollowing the ABN21 discovery. Analytical results from this sampling programme are expected in June and will beused to prioritise the company's future exploration and guide follow-updrilling. Commenting today, managing director of Gravity, Mr Phil Harman said: "We believethis early start to the programme on this exciting and promising explorationproject should enable us to evaluate the potential of the area during the 2005field season." The Abner Range targets were identified by a FALCON(R) survey, the airbornegravity system developed by BHP Billiton. The ABN21 kimberlite discovery resulted from first-pass drilling of anaccessible FALCON(R) target with 147 microdiamonds and two small macrosrecovered from two shallow holes drilled in January. Almost all the stones arewhole, colourless and of potential gem quality. A full program of follow-up testing at Abner Range is planned for late June onceground conditions are dry enough for the main access track to the site to bere-established. This will permit mobilisation of drilling and bulk samplingequipment together with the necessary camping and support infrastructure. /2 GRAVITY DIAMONDS 2 The Abner Range is part of Gravity's largest diamond exploration area inAustralia, covering some 40,000km2 of tenements in a number of different areasof the Northern Territory. This is a joint venture with Rio Tinto Exploration,managed by Gravity, in which it is earning a 51p.c. interest. European investors presently own approximately 58p.c. of Gravity, with BHPBilliton holding a 9.6p.c. interest and Gravity management and family around4p.c. Daily London quotation of Gravity share price (AIM symbol GRN) appears in the Financial Times, Daily Telegraph and the Evening Standard Further Information: Phil Harman, 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