Petra Diamonds Regulatory News (PDL)

18 Oct 2006 10:08

Petra Diamonds Ld18 October 2006 Petra Diamonds Limited Bulk Sampling Commenced at Alto Cuilo Project in Angola Petra Diamonds Limited ("Petra"), the AIM-quoted and ASX-listed diamond mininggroup, is pleased to announce that bulk sampling has commenced at the Alto Cuiloproject ("Alto Cuilo") in Angola. This programme is being undertaken to generatea better understanding of the kimberlite deposits as well as producing criticaldata relating to grade and value per carat. The large diameter drill rig ("LDD rig") has commenced operation and willinitially stockpile 200 tonne bulk samples from each selected kimberlite, to betreated by the 10 tonne per hour Dense Media Separation ("DMS") plant which isexpected to be commissioned in November 2006. This lead time will enable theexploration team to stockpile sufficient material to enable the DMS plant to godirectly to full capacity treatment of the samples when it is commissioned.Priority targets have already been identified and ranked for LDD drillingaccording to mineral chemistry, surface area and logistical considerations.Initial results are expected by December 2006. The LDD rig is a RB40 drill rig from Prakla Bohrtechnic in Germany and will bedrilling holes with a diameter of 43 centimetres (17 inches) to depths of up 350metres. The LDD rig is able to extract volumes of material large enough toenable Petra to evaluate macro diamonds that may be contained therein, as wellas giving more accurate data relating to overall grade and carat value. Johan Dippenaar, Petra's CEO, commented, "The commencement of bulk sampling is asignificant step in the development of Alto Cuilo, following the extensiveexploration that has been carried out to date. The bulk sampling programme isimportant as the results will give us a much better idea of the potentialproject economics. Alto Cuilo is now at the advanced stage of exploration and,working with our joint venture partner BHP Billiton, we continue to fast trackthe development of this major project." To view first pictures of the drill rig in operation please go towww.petradiamonds.com 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. Jim Davidson is the Qualified Personfor the purposes of the AIM Guidance Note on Mining, Oil and Gas Companies datedMarch 2006 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: Parkgreen Communications, LondonCathy Malins / Annabel LeatherTel +44 20 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange