Stellar Diamonds Regulatory News (STEL)

31 Jan 2007 07:01

West African Diamonds PLC31 January 2007 162 Clontarf Road Dublin 3, Ireland Tel: +353 1 8332833 Fax: +353 1 8333505 Email: info@westafdiamonds.com www.westafdiamonds.com WEST AFRICANDIAMONDS plc. 31st January 2006 West African Diamonds plc ("WAD" or the "Company") Interim Results for the six months to 31st October 2006 West African Diamonds a diamond mining and exploration company with assets inSierra Leone and Guinea listed successfully on AIM on January 5th, 2007. Whilethe listing is undoubtedly the highlight of the period other significantoperational activities are taking place. Highlights • Demerger from African Diamonds PLC; successful fundraising of £2.7m and AIM listing • The first module of the gold and diamond recovery plant, for the Plant 11 project in Sierra Leone, a Dense Media Separator (DMS), was shipped from South Africa in January and will arrive in Freetown in late February. • Discussions are also at an advanced stage with a contractor to mine the deposit at Plant 11. • WAD has acquired the exploration equipment and associated moveable assets owned by De Beers in Guinea. • De Beers are consolidating their African exploration into a few countries and thus WAD have recruited their prospecting team in Guinea. John Teeling, Chairman of WAD, commented: "We believe that WAD holds a portfolio of exciting diamond development andexploration assets which were not receiving due attention in the larger AfricanDiamonds portfolio. By creating a separate vehicle with its own identity, listing, financing,shareholder base and, importantly, management, we believe that the value in theassets will be unlocked. This is not early stage exploration, but a solid diamond mining developmentplay, with additional exploration upside." Enquiries: West African ResourcesJohn Teeling, Chairman + 353 1 8332833James Campbell, Deputy Chairman + 27 83 457 3724 Corporate SynergyJohn Wakefield +44 (0)117 933 0020 College HillPaddy Blewer +44 (0)20 7457 2020Nick Elwes +44 (0)20 7457 2020 Interim Statement accompanying the results to 31 October 2006 Overview WAD has put together a highly attractive portfolio of assets with near termdevelopment to provide positive cashflow, and high value exploration in an areawith a proven track record and outstanding potential for diamonds. Development Projects WAD currently holds three late stage development projects: the Plant 11 projectand Kimberlite Pipe 3 and dykes in Sierra Leone and the Bomboko alluvial depositin Guinea. • Plant 11, the diamond/gold undersize tailings deposit near Koidu in Sierra Leone, is expected to come on stream in the third quarter of 2007. It is estimated that approximately 7 million tons of material will be treated by the 150 tons per hour plant being constructed for WAD. Part of the plant is on its way to site already and the balance is being assembled in South Africa for shipment in March. The site is being prepared and all necessary approvals obtained. • The Pipe 3 Kimberlite and 14kms of associated diamond dykes in Koidu will be evaluated during 2007. The DMS plant which is arriving in Sierra Leone in February for Plant 11 will first be used to retreat the material from the Pipe 3 trial mining programme that took place in 2005 . A detailed drilling programme will also be undertaken. Mining Pipe 3 as a small deposit and/or a shaft and tunnel mining development on the dykes are options being considered. • In Guinea, a group of seven licences on the Bomboko River will be worked. These licences, some of which are already subject to mining leases, will be mined and permission will be obtained to mine the remainder. Exploration Activities We have an excellent exploration portfolio in both Sierra Leone and Guinea The first target for exploration is licence Expl. 11/2002 covering 120 sq kmssouth of Koidu in Sierra Leone. The ground has both primary and secondarydiamond and primary gold potential. An exploration programme to includesampling, ground geophysics and drilling is being prepared. We also haveprospecting licences in Guinea where an exploration programme to add to theexisting Bomboko potential will take place. There is scope to add further kimberlites in Guinea. The addition of the DeBeers prospecting team to our management will allow WAD not only to apply forspecific licences, but also to undertake an active exploration programme. Finances The accounts outlined below relate to the six months to October 31st 2006 and donot include the subsequent fund raising. The loss reported relates mainly tothe new accounting treatment for share options. WAD has adequate finance. The Company raised £2.7 million prior to listing. Thismoney, plus the expected cash flow from the third quarter of 2007 onwards fromthe tailings project, is sufficient for WAD's current plans. Future WAD has the projects, the finance and a high quality management team with whichto grow the Company. West Africa is an area with outstanding explorationpotential for diamonds and precious metals, where historically the diamonds areof the highest gemstone quality. Political instability in the region has meantthat little exploration or development has taken place in recent decades, but webelieve that we have the experience, finance and technical skills in place toexploit the opportunities available. John TeelingChairman31st January 2007 Financial Information (unaudited) Group Profit and Loss Six months ended 31 Oct 06 31 Oct 05 £'000 £'000 Turnover 0 0Operating costs (148) 0 Operating loss (148) 0Interest receivable 0 0 Loss before taxation (148) 0Taxation 0 0 Loss for the period (148) 0 Loss per share (0.74p) (0.00p) Group Balance Sheet Six months ended 31 Oct 06 31 Oct 05 £'000 £'000 Fixed assets 4,455 0 Current assets 12 0Current liabilities (391) 0 Current assets less current liabilities (379) 0Creditors (amounts falling due after one year) 0 0 Total assets less liabilities 4,076 0 Share capital and reserves 4,076 0 Group Cash Flow Six months ended 31 Oct 06 31 Oct 05 £'000 £'000 Net cash inflow from operating activities 25 0Returns on investments and servicing of finance 0 0Capital expenditure (25) 0Financing - issue of ordinary share capital 0 0Increase / decrease in cash 0 0 Notes: 1. The figures for the six months to 31 October 2006 and 31 October 2005are unaudited. The financial information set out above does not constitute fullstatutory accounts within the meaning of Section 240 of the Companies Act 1985. 2. Copies of this announcement will be sent to shareholders and will beavailable for inspection at the Company's Registered Office at 20-22 BedfordRow, London WC1R 4JS. This information is provided by RNS The company news service from the London Stock Exchange