Petra Diamonds Regulatory News (PDL)

20 Sep 2007 10:00

Mano River Resources Inc20 September 2007 Mano River Resources Inc. News Release No: 2007/XX TSX-V: MNOAIM: MANA 20th September 2007 ENCOURAGING DIAMOND GRADES FROM UNDERGROUND TEST MINING AT KONO Mano River Resources Inc. ("Mano" or "the Company") the TSX-V and AIM-listedexploration and development company focussed on West Africa, provides a progressupdate on the Kono kimberlite dyke diamond project in Sierra Leone. The Konoproject is a Joint Venture between Stellar Diamonds Ltd ("Stellar") (49%) andPetra Diamonds Limited ("Petra") (51%). Mano River is a 68.5% shareholder inStellar, which recently completed a £4.2m pre-IPO financing and plans to list onAIM. The salient points from the Petra news release of today are as follows: •The development programme makes further solid progress, with test shafts delivering highly encouraging results •Trial mining commenced on three shafts where in-situ grades of between 50 and 80 carats per hundred tonnes ("cpht") have been achieved •Petra believes that the test shafts have a high likelihood of developing into economic production operations €2,809 diamonds totaling 241.7 carats recovered from trial mining to date (February 2007: 638 diamonds, 58.8 carats) •The increase in diamond recoveries is due to better quality kimberlite now encountered, more consistent kimberlite fissure and better fissure widths; all very positive signs for the future development of economic operations Adonis Pouroulis, Chairman of Petra, commented; "We are pleased to report thefurther positive progress at the Kono project. The trial mining is going welland whilst further work is required in order to infer a representative grade andvalue, the results to date support our expectations for the Kono project and weprogress with confidence into the next phase of the development. The quality,consistency and width of the kimberlite now encountered are all positive signsfor the future development of economic operations" Stellar's CEO, Karl Smithson comments: "We are very encouraged by the news givenby Petra Diamonds from the Kono operations. We would like to commend Petra, ourpartners, on their diligent and effective management of the project. Petra isthe world leader in underground kimberlite dyke mining and they have assembled afirst class operational team that we are confident can bring success to theproject." Petra also provided the following further details: Test Shaft Development The development programme at Kono has achieved some encouraging results inrecent months with potentially economic kimberlite fissures having been opened.Diamond yields, fissure widths and the underground mining and geologicalconditions have enabled Petra to concentrate their test shaft efforts on threevery promising diamondiferous kimberlitic fissure targets. To date five shafts have been sunk, each to a depth of 30 metres. Three of theseshafts are now at the test mining stage on the 30 metre level and have beenreturning satisfactory in-situ grades of between 50 and 80 cpht. These shaftsdisplay a consistent, near vertical dipping fissure line with very encouragingin-situ shaft sinking grades; fissure widths vary between 40 centimetres ("cm")and 200 cm with satisfactory mining conditions having been experienced to date.Two shafts were discontinued because diamond recoveries during the shaft sinkingand test mining phases did not match the potential of the other three shafts. The test shafts are at advanced levels of development and the processing of alimited amount of weathered, diluted and mixed diamondiferous kimberliticmaterial extracted during shaft sinking yielded 2,809 diamonds totalling 241.7carats. The ten largest diamonds ranged in size from 0.65 carats to 7.2 carats.Although the diamond yields are encouraging from a small amount of materialprocessed, Petra is of the opinion that the scale of the test work conducted todate is too limited to arrive at any representative grade or value and willreport on further findings when available. The next phase of the project will excavate approximately 100 metres ofkimberlite along strike of the mineralised body at each shaft, so as to processapproximately 1,000 tonnes of clean kimberlite to obtain acceptable run of minegrades and diamond values to be used in proposed business plans. It isanticipated that this programme will be complete by March 2008. Exploration Development During shaft sinking operations Petra found that, due to the highly saprolitisednature of the rocks in this locality, the silicate and spinel kimberliteindicator minerals have been destroyed, in many cases to depths of up to 20metres. It has further been ascertained that ilmenite-deficient kimberlitesexist in the area. These conditions may mean that kimberlite pipes wereoverlooked during mining and exploration operations carried out by previousoperators in the area and Petra is considering the flying of a low-levelhelicopter borne electro-magnetic survey over the licence areas so as toprospect for these potential deposits. Petra Notes: It should be noted that the potential quantity in this report isconceptual in nature, there has been insufficient exploration to define aMineral Resource and it is uncertain if further exploration will result in thedetermination of a Mineral Resource. For further information on Mano River Resources and Stellar Diamonds Limited,you are invited to visit the Company's website at www.manoriver.com or contact: Mano River Resources Inc +44 (0) 1235 810 740Tom Elder / Luis da Silva Stellar Diamonds Limited +27 82 802 8802Karl Smithson, CEO Pelham PR +44 (0) 20 7743 6670Charles VivianPanmure Gordon (UK) Limited +44 (0) 20 7614 8384 Edward FarmerGMP Securities Europe LLP, an Appointed +44 (0) 20 7459 3606Representative of Panmure Gordon (UK)LimitedJames Hannon Notes to Editors: About Stellar Diamonds Limited Stellar Diamonds is a 68.5% owned subsidiary of AIM and TSX-V listed Mano RiverResources Inc. Stellar plans to list on London's AIM market as an integrateddiamond miner and explorer with a focus on West and Central Africa. TheCompany's current portfolio of diamond properties and joint ventures in WestAfrica is summarised as follows: A 49% interest in a Joint Venture with Petra Diamonds on the Kono KimberliteDykes project in the Kono diamond fields of Sierra Leone, where test mining hascommenced and commercial diamond production is scheduled for 2008. A 50% interest in a JV with Trans Hex Group in the Weasua cluster ofdiamondiferous kimberlite pipes in Liberia, where bulk sampling to determinediamond grades and value is currently underway. A 100% interest in the Mandala alluvial and Bouro kimberlite dyke project inGuinea, where a non-43-101 indicated alluvial diamond resource of 550,000 caratshas been established and where high grade kimberlite dykes are present. A 15,000km2 reconnaissance licence in western Liberia where diamond bearingkimberlites and numerous high interest mineral indicator anomalies have beendiscovered. A JV with BHP Billiton, who are earning into an initial 51% interest in thesouth-eastern Sierra Leone tenements. The joint venture has located extensionsof the high-grade diamondiferous Tongo dyke field and identified numerousgeophysical targets that are currently being drill tested. Two licences in south east Sierra Leone where kimberlite has been discovered andindicator mineral anomalies require further follow up work. A JV with African Aura in Liberia where exploration is ongoing to earn into a78% interest in the diamond rights of the 400km2 north Bea exploration project. A 100% held interest in the diamond rights of the 1,000km2 Bea MDA licence inLiberia where indicator mineral anomalies have been generated and requirefurther follow up work. An agreement with De Beers to access their regional Guinea database, where anindependent consultant has reviewed the data and target selection is nowongoing. Mano's Qualified Person responsible for reviewing the content of this release isits President & CEO, Dr Tom Elder, who holds a BSc and Doctorate in Geology fromDurham University in the UK, is a Fellow and former Member of Council of TheInstitution of Mining and Metallurgy and a Fellow of The Geological Society. The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release This information is provided by RNS The company news service from the London Stock Exchange