Last checked at 22 Jan 2009 07:00
| 22 January 2009 | AIM: PDL |
Petra Diamonds Limited
("Petra" or "the Company")
Cullinan site visit
Petra, the international diamond mining group, is today hosting a site visit for journalists to the Cullinan mine in South Africa. The Petra Diamonds Cullinan Consortium completed the acquisition of this mine from De Beers Consolidated Mines in July 2008 and Petra has an initial 37% interest in the mine.
Located near Pretoria, South Africa, the Cullinan mine hosts the second-largest indicated diamond resource in the world by in-situ value at 208 million carats (including tailings) and is a regular source of spectacular diamonds, including highly prized blue diamonds. The mine earned its place in history with the recovery of the Cullinan diamond, the world's largest ever gem diamond at 3,106 carats in the rough, and a quarter of all the world's diamonds over 400 carats in size come from Cullinan.
Petra is currently mining the 'B-Cut', where operations support 1 million carats per annum of diamond production, and where there is the necessary infrastructure and resources in place to provide opportunity to significantly uplift production.
The visit will include an update on Petra's mine development plans, production to date from Cullinan, an underground tour and detailing on the plant process review project currently underway. There will be no new guidance on current trading for the Company as a whole.
The presentation materials for the site visit are available on the Company's website, www.petradiamonds.com
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For further information, please contact:
Cathy Malins Telephone: +44 (0) 20 7318 4052
Petra Diamonds, London cathym@petradiamonds.com
Adrian Hadden Telephone: +44 (0) 20 7523 8350
Collins Stewart, London ahadden@collins-stewart.com
Julian Walker Telephone: +44 (0) 20 7357 9477
Hogarth Partnership, London pdl@hogarthpr.co.uk
James Duncan Telephone: +27 (0) 11 880 3924
Russell and Associates, Johannesburg james@rair.co.za
or visit Petra Diamonds at www.petradiamonds.com
Notes to Editors:
About Cullinan
The Cullinan mine (located to the east of Pretoria, South Africa) was established in 1903 and has been mined for many years, first as an opencast operation and then as an underground, block cave mine. The Cullinan kimberlite pipe is the second largest indicated diamond resource in the world by in-situ value, holding some 208 million carats (including tailings) worth US$17.9 billion (as at September 2008 resource statement).
Many of the world's most spectacular diamonds have been recovered at Cullinan, including the world famous Cullinan diamond in 1905. Found in the early surface workings of the mine, it is still by far the largest gem diamond ever recovered. It weighed 3,106 carats, or 621 grams, and was named after Sir Thomas Cullinan, who discovered the kimberlite deposit in 1898. The rough diamond was cut to form the 530 carat Great Star of Africa and the 317 carat Lesser Star of Africa, set in the Crown Jewels of Britain, seven other significant large stones and 96 smaller brilliants.
Cullinan is renowned as a source of large diamonds and yields many diamonds larger than ten carats. Furthermore it has produced over 300 stones weighing more than 100 carats, and around a quarter of all of the world's diamonds weighing more than 400 carats. During the last 15 years Cullinan has produced more than 500 stones each weighing more than 60 carats. More recently, two stones weighing 363 carats and 285 carats were recovered in successive production series in 1997 with a combined value in excess of US$23 million. In the previous series, also in 1997, a 698 carat stone was recovered.
Cullinan is also the world's only significant source of blue diamonds, which are highly desirable in the jewellery market. Cullinan gave the world the collection of 11 rare blue diamonds which were displayed in 2000 at London's Millennium Dome alongside the Millennium Star. This exquisite collection included the 27 carat (polished weight) fancy vivid blue 'Heart of Eternity'. More recently, the mine yielded a 39.19 carat blue diamond which was sold by Petra in October 2008 for US$8.8 million. Petra has since recovered a further exceptional blue diamond of 26.58 carats and this remarkable stone is yet to be sold.
Other notable diamonds from Cullinan include the Premier Rose (353 carat rough), the Niarchos (426 carat stone), the 599 carat rough De Beers Centenary, the famous 69 carat Taylor-Burton diamond and the Golden Jubilee. This means that Cullinan is the source of not only the world's largest rough diamond but also the two largest polished diamonds in the world - the Golden Jubilee (at 545.67 carats) and the 530 carat Great Star of Africa.
About Petra Diamonds
Petra Diamonds is a rapidly growing diamond mining group, focused on the African continent. A number of recent acquisitions have established Petra as one of the world's largest independent diamond groups by resources, with a total resource base of 265 million carats, worth US$27.3 billion (as at September 2008 resource statement). Petra's objective is to continue to develop its stature as a leading diamond producer in all of the countries in which it operates.
In South Africa, Petra has five producing mines - Cullinan, Koffiefontein, Helam, Sedibeng and Star. The Group has also reached agreement to acquire two further assets from De Beers - the Kimberley Underground mines, also in South Africa, and the Williamson mine in Tanzania. The group is on track to increase its annual production from 200,000 carats in the year to June 2008 to over 1 million carats in the year to June 2009.
Petra will only commit to working in countries which are members of the Kimberley Process and shareholders can remain assured that Petra's diamonds will only ever be 100% conflict free.
Petra is listed in London under the share code PDL and is AIM's largest diamond group by market capitalisation.