Petra Diamonds Regulatory News (PDL)

25 Apr 2006 07:01

Petra Diamonds Ld25 April 2006 Petra Diamonds Limited Exploration Update - Alto Cuilo Petra Diamonds Limited ("Petra" or "the Company"), the AIM-quoted and ASX-listeddiamond mining group, announces an update with regards to the Alto Cuilo project("Alto Cuilo") in north-eastern Angola. Highlights: • Alto Cuilo's potential as a major diamond project is furthersubstantiated, with the estimated surface area of kimberlitic occurrencesincreasing to approximately 1,437 hectares (15 March 2006: 1,323) • 38 kimberlitic occurrences (15 March 2006: 33) now confirmed bydrilling • Third core drill rig to arrive on site this month - two months aheadof schedule - to further accelerate the rate of discoveries and information flow • 412 alluvial pits (15 March 2006: 350) completed Kimberlite Exploration Programme Since the Company's last update on 15 March 2006 within the Interim ResultsStatement, solid exploration progress has been made at Alto Cuilo, with afurther increase in the estimated surface area of kimberlitic occurrences toapproximately 1,437 hectares. Ongoing drilling of the anomalies identified by the Midas low level helicopteraeromagnetic survey has now resulted in the identification of a further 5kimberlitic occurrences with an estimated surface area of approximately 114hectares. This takes the total to 38 kimberlitic occurrences with an estimatedsurface area of approximately 1,437 hectares, a significant increase over theresults reported by the Company on 15 March 2006. Drilling in excess of 19,196metres on 140 holes has been undertaken to date, with 104 of these holesintersecting kimberlitic material, a success rate of 74%. The estimated surface area of the kimberlitic occurrences is based on theinterpretation of the magnetic anomalies identified, together with analysis ofdrilling results. The third core drill rig, which will serve to further accelerate the rate ofdiscoveries and information flow, is now expected to arrive on site earlier thanexpected, in April 2006, two months ahead of schedule. The large diameter drillrig and 10 tonne per hour sample plant remain on track for delivery in June2006. Alluvial Exploration Programme The alluvial pitting and trenching programme continues in order to furtherevaluate the potential for economically viable alluvial deposits, with 412 pitsalready completed. An economic feasibility study is underway on an area ofspecific interest. Adonis Pouroulis, Chairman of Petra, comments "We are making rapid progress inthe evaluation and development of Alto Cuilo, working alongside our jointventure partner BHP Billiton, and this process will be further accelerated bythe arrival of the additional drill rig this month. We continue to be excitedby the large scale of kimberlitic discoveries on site, which demonstrate themajor potential of the project." Ends Notes 1. The information in this update that relates to Exploration Results, MineralResources or Ore Reserves is based on information compiled by Jim Davidson, Pr.Sci Nat (reg No 400031/06), who is a Member of the Geological Society of SouthAfrica, a 'Recognised Overseas Professional Organisation' ('ROPO'), included ina list promulgated by the ASX from time to time. Jim Davidson is a full-timeemployee of the Company and has sufficient experience which is relevant to thestyle of mineralisation and type of deposit under consideration and to theactivity which he is undertaking to qualify as a Competent Person as defined inthe 2004 Edition of the 'Australasian Code for Reporting of Exploration Results,Mineral Resources and Ore Reserves'. Jim Davidson has given his written consentto the inclusion in this announcement of the matters based on his information inthe form and context in which it appears. 2. It should be noted that the potential quantity in this report is conceptualin nature, there has been insufficient exploration to define a Mineral Resourceand it is uncertain if further exploration will result in the determination of aMineral Resource. For further information, please contact: Justine Howarth / Cathy Malins Telephone: +44 (0) 20 7493 3713Parkgreen Communications, London Kevin Skinner Telephone: +61 (0) 8 8234 9555Field PR, Adelaide Mobile: +61 (0) 414 822 631 This information is provided by RNS The company news service from the London Stock Exchange