Petra Diamonds Regulatory News (PDL)

3 Jul 2006 07:01

Petra Diamonds Ld03 July 2006 3 July 2006 Petra Diamonds Limited Kono Project - Operations Update Petra Diamonds Limited ("Petra"), the AIM-quoted and ASX-listed diamond mininggroup, announces an update with regards to the Kono Project where Petra and ManoRiver Resources Inc are engaged in a joint venture relating to the production ofdiamonds from the Lion kimberlite fissures in the Kono diamond district ofSierra Leone. First diamonds recoveredPetra is pleased to announce that commissioning of the 75 tonne per hour DenseMedia Separation ("DMS") production plant was completed on schedule in June 2006and that diamond recovery commenced towards the end of the month with the plantstarting to treat the bulk samples recovered from exploration operations. To date, 44 diamonds totaling 5.6 carats have been recovered, the largest beinga stone of 1.4 carats. The samples processed to date comprise mixed and dilutedmaterial from exploration operations and, whilst very encouraging, are not largeenough to arrive at a representative grade. Mining developmentShaft sinking operations are proceeding well and a sound infrastructure is inplace alongside the DMS plant. Two shafts, both of which are on kimberlitefissure, are in progress with the deepest (Black Rock) being at a depth of 13.5metres and the second (Lost Shaft) at a depth of 9 metres. The shafts will besunk to a depth of around 30 metres before stopes are prepared to accessproduction test tons of fissure. Numerous 'rolling' exploration trenches andshafts continue to be sunk so as to identify the best fissure targets out of themultiplicity of fissures available for development. Chairman's commentAdonis Pouroulis, Petra's Chairman, commented, "We are pleased to announce thatthe plant was commissioned and the first diamonds were recovered from the Konoproject on schedule in June 2006. The recovery of 5.6 carats of diamonds,including a 1.4 carat stone, from the small amount of material processed to dateis highly encouraging. Sinking of the production shafts is on track and we lookforward to further developments at Kono over the coming months." -Ends- Notes1. 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: Cathy Malins / Annabel Leather Telephone: +44 (0) 20 7493 3713 Parkgreen Communications, London This information is provided by RNS The company news service from the London Stock Exchange