GRN.L Regulatory News (GRN)

29 Jul 2005 07:02

Gravity Diamonds Limited29 July 2005 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 29 July 2005 Quarterly Report for the period ended 30 June 2005 Diamonds recovered at Abner Range, NT and in the DRC • Northern Australian Diamonds Three diamonds greater than 0.3 mm in size, including a 0.147ct stone, recoveredfrom the initial samples from latest RC drilling programme. Kimberlite pipe of 1.5-2 hectares confirmed from ground gravity and drilling. Regional sampling and drill testing programme over 25 FALCON(R) targetscompleted. • Kasai Craton - Democratic Republic of Congo ("DRC") Large area of anomalous kimberlitic indicator mineral defined from Luebo blocksampling results Likelihood of diamondiferous kimberlites confirmed by recovery of well preservedG10 garnets and good quality macrodiamonds. Target selection from aeromagnetics well underway. Access to large new tenement areas obtained. Regional reconnaissance programmes in progress. • Ellendale-Blina No work was reported for the quarter. • King George North JV Costeaning and sampling of priority FALCON(R) anomalies completed. • Cash (30/6/2005) $6.8 million (6 cps) /2 GRAVITY DIAMONDS 2 Forthcoming activities The following programmes are planned for the September 2005 quarter: Project Location Exploration Activity Planned Timetable DMA (Rio Tinto Northern RC drilling on Abner Range and other June -Exploration Territory targets. Sampling FALCON( targets in SeptemberAgreement) Arnhem, Cox-Arnold and Tee Dee 2005 projects Ellendale Western Results evaluation and review July -Diamonds (Blina Australia AugustDiamonds JV) 2005 King George Western Results evaluation and review July -North (Striker Australia SeptemberResources JV) 2005 Kasai Craton DRC, Regional heavy mineral sampling and July - Africa airborne geophysics October 2005 AUSTRALIAN PROGRAMMES Northern Australian Diamonds JV (Rio Tinto Exploration Agreement, DMA can earn51%) Fieldwork during the quarter focused on the Abner Range project. Work includedfive diamond drill holes and an RC drilling programme to test the size andpotential grade of this diamondiferous kimberlite discovery. Surface sampling ofa further 25 FALCON targets was also completed with five targets returningsignificant indicator mineral recoveries. This was followed by RC drilling. Elsewhere, approvals were obtained to carry out geochemical sampling programmeson Aboriginal freehold land in the Benda, Cox-Arnold and Tee Dee FALCON surveyareas in the Northern Territory. These sampling programmes will be carried outduring the September quarter. Abner Range (McArthur Project) Recent fieldwork on the Abner Range project has continued to upgrade the area.The programme included detailed ground gravity over the ABN 021 target, wherepreviously announced drill hole results returned kimberlitic material with 147microdiamonds and two macrodiamonds, along with sampling of other FALCON targetsin the area. This was followed by a diamond drilling programme of five holes andan RC drilling programme of 15 holes on ABN 021 and limited drilling on othertargets that could be accessed by the drilling rig. ABN 021 Discovery The detailed ground gravity survey covered an area of approximately four squarekilometres centred on the ABN 021 FALCON target and was completed early in thequarter. It confirmed the original airborne gravity target and the additionaldetail obtained indicated potential for a kimberlite pipe of between 1.5 and 2hectares in area. The gravity survey also highlighted a smaller, separate lobeimmediately to the southwest of the main body. Five diamond drill holes totalling 477 metres were completed on ABN 021 duringMay. They were designed to determine the geological nature of the kimberlitepipe. Four vertical holes were drilled and a fifth was collared in the adjacentwall rock and angled to intersect the pipe margin at a vertical depth of 160metres. Results indicate that the kimberlite intrudes flat-lying, interbeddedsandstone and shale and has a 5-9 metre thick cover of Recent ferruginous graveland Cretaceous sediments. /3 GRAVITY DIAMONDS 3 A follow-up programme of 15 RC holes to confirm the geometry of the pipe andprovide larger sample volumes for diamond analysis was completed recently.Drilling conditions within the pipe were moderately difficult caused by acombination of high water inflows in soft kimberlitic clays and the deepweathering profile. Nevertheless, reasonable sample volumes were obtained fromseveral drill holes on the pipe allowing the assessment of any diamondsrecovered. Gravity is very encouraged by the recovery of good quality diamonds from limitedsample volumes from the recent drilling campaign at ABN 021 so far analysed. Theinitial drill hole processed, ARC 015, sited in the southeast of the pipereturned three diamonds greater than 0.3mm in size between 15 metres and 25metres depth at end of hole. The largest of these diamonds was a 0.147 ct stonemeasuring 3.6mm by 2.9mm by 1.5mm. The other two diamonds had diameters of 0.35and 0.40mm respectively. The remaining fine fraction (0.425mm) were reported from 15 different heavymineral samples collected within a large area of extensive artisan mining ofalluvial diamonds. Forty-four percent of those recovered are white, colourlessstones with little to minor inclusions and fractures. Many have well developeddodecahedral and octahedral shapes. The macrodiamonds were recovered fromsamples that also yielded a large number of KIMs confirming that there is a highprobability of nearby kimberlitic sources with the potential to carry gemdiamonds. The majority of the samples that yielded high priority KIMs have highlighted anarea of approximately 7,000 square kilometres. An aeromagnetic survey coveringthis area is underway to pinpoint direct magnetic targets associated withkimberlites. The estimated completion date for this work is late July, withtargets to be selected during August. Gravity plans to begin drill testing targets in September should a suitabledrilling rig be available. /6 GRAVITY DIAMONDS 5 Regional Sampling Programme The 2005 regional heavy mineral sampling programme commenced mid April with twosampling crews supported by a single helicopter. The programme will be upgradedin July with the addition of a further two crews and another helicopter. Severalareas have been completed so far within the Maniamuna project. Samples from the first block in the northern part of the Maniamuna projectcovered an area of 6,500 square kilometres. A consignment of heavy mineral andgeochemical samples from approximately 300 sites was sent to South Africa foranalysis with preliminary results expected to be available in October. Further tenement joint ventures were negotiated during the quarter. The totalKasai project area now comprises approximately 125,000 square kilometres ofdiamond prospective ground held by a number of different companies including BHPBilliton. Gravity has a variety of option agreements with these companies thatentitles the company to carry out exploration and earn a majority interest inany discovery. It is estimated that completion of the regional samplingprogramme will allow a significant reduction of the total ground holdings byearly next year with only the most prospective portions retained. 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 Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/4685p_-2005-7-29.pdf This information is provided by RNS The company news service from the London Stock Exchange