GRN.L Regulatory News (GRN)

28 Apr 2005 08:27

Gravity Diamonds Limited28 April 2005 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 28 APRIL, 2005 GRAVITY REPORTS POSITIVE RESULTS FROM FIRST WORK ON UNEXPLORED DIAMOND AREAS OF CONGO (DRC) • 70 sites in Kasai Craton show kimberlitic garnets; 10 return macrodiamonds • Planned aeromagnetic survey to be extended into new target areas • Completion of target identification and follow-up planned for this field season Gravity Diamonds Limited is pleased to report positive results, including therecovery of kimberlitic garnets and macrodiamonds, from initial stream sedimentsampling over 17,600 square kilometres of the Kasai Craton diamond project inthe Democratic Republic of Congo (DRC). Specific areas for follow-up in thecurrent field season have been identified in the region which is considered tobe one of the best unexplored diamond terrains in the world. Laboratory analysis of the coarse fraction (+0.425mm) of the 247 samplescollected in the 2004 field season shows that kimberlitic garnets and a largenumber of kimberlitic ilmenite grains have been recovered from 70 sample sites.Ten of these sites also returned macrodiamonds. The exact nature of thekimberlitic garnets will be determined by micro-probe analysis of selectedgrains over the next month. The samples were sent to a specialist laboratory in South Africa for heavymineral concentration, separation into several size fractions and scrutiny forthe presence of kimberlitic indicator minerals. Results from analysis of thefine fraction of the samples are expected in about three weeks. Commenting today, Mr Phil Harman, Gravity's managing director, said: "We arevery pleased with these initial results, particularly the fact that kimberliticgarnets have been recovered from so many sites. At this early stage, thesegarnets are more meaningful than the macrodiamonds since they are more likely tohave been recycled from kimberlite pipes than younger formations. Their recoveryis a good indicator of the probable presence of kimberlite in the area.Diamonds, by virtue of their extreme hardness, can survive all manner ofrecycling and do not necessarily indicate a kimberlite source in the immediatevicinity." Based on these results, Gravity has identified several specific areas totallingsome 5,000 square kilometres for further follow-up work, all of which lie withina region where alluvial diamond workings were encountered during the company's2004 program. A planned aeromagnetic survey, scheduled to start this month, willnow be extended to include all of the target areas identified as a result of the2004 sampling. /2 GRAVITY DIAMONDS 2 Gravity says the early commencement of the survey should allow the company tocomplete target identification and complete follow-up work before the end of thecurrent field season. Elsewhere within the Kasai project, stream sediment sampling has begun on thenext block of concessions which cover an area of about 23,000 square kilometres.Gravity anticipates this phase of field work will take 3-4 months to complete,and results from the sample analysis are expected towards the end of 2005. KASAI - A UNIQUE OPPORTUNITY The Kasai Craton is the extension of the diamond-rich Angolan Craton into theDRC and is generally considered to be amongst the most prospective unexploreddiamond terrains in the world. Through an agreement with BHP Billiton, Gravityhas gained access to large areas of this ground and believes this gives it aunique opportunity to use modern diamond exploration techniques not previouslyapplied in the region. The program will include high resolution aeromagneticsover the areas drained by the rivers from which kimberlitic indicator mineralshave been recovered. This will enable Gravity to plot very precise magneticanomaly maps of these areas. European investors presently own approximately 58p.c. of Gravity, with BHPBilliton holding a further 9.6p.c. and Gravity management and associates around4p.c. 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