GRN.L Regulatory News (GRN)

14 Sep 2005 07:25

Gravity Diamonds Limited14 September 2005 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 14 September 2005 Aeromagnetic Survey Defines Numerous High Priority Targets for Drilling in the DRC; Northern Australian Program Progresses • Aeromagnetic survey over 6,900 square kilometres completed at Luebo, DRC • Preliminary interpretation defines 30 high priority targets for follow-up • Drilling of selected targets proposed to commence in October Gravity Diamonds is pleased to announce that it has received the final processedaeromagnetic data from the aerial survey recently completed over the Luebo areain the Kasai diamond exploration program in the Democratic Republic of Congo. The survey covered a total area of 6,900 square kilometres in a district wherethere are extensive alluvial workings by artisan diamond miners. As previouslyreported, the kimberlitic indicator mineral ("KIM") sampling program carried outin late 2004 identified numerous positive KIMs, including pyrope garnets, in thearea. A significant number of these were classified as G10s, which areconsidered to be an excellent indicator for the occurrence of diamondiferouskimberlite. Primary surface textures and the coarse size of the KIM grains implythat, in all likelihood, they were recovered in locations very close to theiroriginal source. The magnetic survey has revealed numerous magnetic signatures that areconsistent with responses from kimberlite pipes. Importantly, the responsesoccur in several broad clusters that would suggest the presence of individualkimberlite fields in the area. Preliminary interpretation of the data has led to the selection of approximately30 high priority targets so far. Calculation of target depths, based on thegeophysical data, has indicated that depths are consistent with the implieddepth to basement over the majority of the area surveyed. Although it will take several months to complete final interpretation of thisvery large data set, a number of high priority targets have been identified forimmediate follow-up. Field inspection of these anomalies has already beencarried out to examine the geological setting and determine site accessibility.Several have been found to be adjacent to active artisan workings. A helicopter portable diamond drilling rig has been located in South Africa.Assuming contract negotiations for its use are completed satisfactorily, it willbe mobilised to the Kasai program later in October to commence drill follow-upof these promising targets. It is expected that drilling on a continuous basiswill be possible through the wet season. Field crews are presently beingmobilised to carry out site preparation and to brief local communities. /2 GRAVITY DIAMONDS 2 Elsewhere in the Kasai program, reconnaissance KIM sampling has proceeded verywell and should be concluded over the entire project area by the middle ofOctober. Due to the large number of samples involved, processing of these inSouth Africa is expected to take about six months before any results areforthcoming. In the Australian diamond program in the Northern Territory, exploration hascommenced on Aboriginal Freehold Land within the Benda Bluff, Cox Arnold and TeeDee FALCON(R) survey areas as approvals have been obtained to carry outgeochemical sampling programs. Numerous promising targets have been identifiedfor follow-up in locations associated with historic indicator mineral andmicrodiamond anomalism. Field crews have been mobilised with work expected to becompleted in October. The DRC program is subject to a Framework Agreement with BHP Billiton while theNorthern Australian one is being carried out under the terms of an explorationagreement with Rio Tinto Exploration Pty Ltd. The information in this report that relates to Exploration Results is based oninformation compiled by Gravity Diamonds Limited's Managing Director, PhillipHarman BSc (Hons), who is a member of The Australasian Institute of Mining andMetallurgy. Mr Harman has sufficient experience which is relevant to the styleof mineralisation and type of deposit under consideration, and to the activityundertaken. He is qualified as a Competent Person as defined in the 2004 Editionof the "Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves". Mr Harman has consented to the inclusion of thisinformation in the form and context in which it appears in this report. 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