Petra Diamonds Regulatory News (PDL)

14 Mar 2006 07:02

Petra Diamonds Ld14 March 2006 Petra Diamonds Limited Exploration Update - Angola and Botswana Petra Diamonds Limited ("Petra" or "the Company"), the AIM-quoted and ASX-listeddiamond mining group, announces important updates with regards to the AltoCuilo project in north-eastern Angola and the exploration programme in Botswana. Alto Cuilo - Angola Since the Company's last update on 31 January 2006, ongoing drilling of theanomalies identified by the Midas low level helicopter aeromagnetic survey hasnow resulted in the identification of a further 7 kimberlitic occurrences withan estimated surface area of approximately 243 hectares. This takes the total to33 kimberlitic occurrences with an estimated surface area of approximately 1,323hectares, a significant increase over the results reported by the Company on 31January 2006. The estimated surface area of the kimberlitic occurrences is based on theinterpretation of the magnetic anomalies identified together with analysis ofdrilling results. A third core drill rig has now been ordered to assist in expediting the drillingof the substantial number of anomalies and is expected to arrive on site by June2006. The large diameter drill rig and 10 tonne per hour sample plant remain ontrack for delivery in June 2006. Kalahari Diamonds - Botswana The Company's exploration activities are focused on the discovery of largerkimberlites (categorised by Petra as kimberlites with a surface area in excessof 25 hectares) primarily by the use of the Falcon gravity technology. However,the discovery of smaller diamondiferous kimberlites is also a priority for theCompany and there have been some important developments in that regard. In searching for kimberlites of less than 25 hectares in size, emphasis has beenplaced on the Gope area where Sekaka Diamonds Limited ("Sekaka", a subsidiary ofPetra) holds prospecting licences covering ground that is known to host severaldiamondiferous kimberlites. The Falcon results for the Gope West flyblock havenow been received with 18 anomalies so far identified for follow-up in the Ablock (the one third of the flyblock closest to Gope). The sources of theseanomalies are estimated to have the potential to be 200 metres to 600 metres indiameter. The Company has also flown a 700km(2) low-level Xcalibur horizontal gradientmagnetic survey to cover Sekaka's prospecting licences in the immediate environsof the Gope kimberlites. By utilising the signature of the response generated byknown kimberlites on Sekaka's ground (Gope 130, 137, 194 and 504), a furthertwenty four target anomalies have been selected. These results are exciting asthe target sources are estimated to have the potential to be 200 metres to 400metres in diameter and ground investigation of these anomalies is underway. 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 whois a Member of the Geological Society of South Africa, a 'Recognised OverseasProfessional Organisation' ('ROPO'), included in a list promulgated by the ASXfrom time to time. Jim Davidson is a full-time employee of the Company and hassufficient experience which is relevant to the style of mineralisation and typeof deposit under consideration and to the activity which he is undertaking toqualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources andOre Reserves'. Jim Davidson has given his written consent to the inclusion inthe report of the matters based on his information in the form and context inwhich 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: Petra Diamonds, South Africa Parkgreen Communications, London Johan Dippenaar/David Abery Justine Howarth / Annabel Leather Tel +27 11 467 6710 Tel +44 20 7493 3713 John Baillie, Perth Field PR, Adelaide Tel +61 8 9381 8888 Kevin Skinner Tel +61 8 8234 9555, Mobile +61 414 822 631 This information is provided by RNS The company news service from the London Stock Exchange