Stellar Diamonds Regulatory News (STEL)

10 Sep 2007 07:01

West African Diamonds PLC10 September 2007 UPDATE ON BOUNOUDOU PROJECT "DROUJBA", GUINEA •The Bounoudou licence contains significant alluvial diamond potential inaddition to the Droujba kimberlite. •Exploration potential of 300,000 - 500,000 carats in one part of theexploration license. The board of West African Diamonds plc, the AIM listed diamonds and preciousmetals explorer and developer (AIM: WAD), is pleased to provide an update on adetailed report into the 53km(2) Bounoudou licence in South East Guinea. Thereport, produced by Dr Sutherland of Placer Analysis Pty Ltd, an acknowledgedexpert in the area of secondary diamondiferous deposits, particularly in WestAfrica, reviewed both hard rock and alluvial diamond potential. In addition to the well known Droujba kimberlites discovered in the 1960s,Sutherland estimates that further small kimberlite pipes and dykes may bediscovered in WAD's exploration license. The alluvial potential signalled by Sutherland is a welcome bonus to WAD. There are a range of alluvial deposits in the Bounoudou area, along both thesmall tributaries and the larger rivers. Although the shallower and less waterlogged of these deposits have been extensively mined, initially by formal miningand latterly by artisinal digging, it is quite likely that there are exploitablesections remaining. Along the larger streams where the deeper gravels arewater-logged there remains potential for significant deposits. The largest suchdeposit is along the River Somolo where an order-of-magnitude explorationpotential has been identified at 300,000 - 500,000 carats. James Campbell, Deputy Chairman, said "This exploration license was acquired toobtain the Droujba kimberlite, but the presence of significant quantities ofalluvial diamonds means that this area has economic potential both for primaryand secondary diamond deposits. Dr Sutherland's report is part of a detailedreview of all available data to help WAD decide the next stage of evaluation ofthe Droujba kimberlite, the secondary dykes and now the potential alluvialdeposits." This release has been approved by Alex van Zyl, Technical Director, West AfricanDiamonds. Alex van Zyl (B.Sc. Stellenbosch, B.Sc. Hons. Pretoria) spent a longcareer in Anglo American in the diamond division, ending up 1990 to 1997 withworldwide responsibility for diamond exploration and evaluation. He was aconsultant to De Beers from 1997 to 2002. Enquiries: West African DiamondsJohn Teeling, Chairman + 353 1 8332833James Campbell, Deputy Chairman +27 83 457 3724 Blue OarJohn Wakefield +44 (0) 117 933 0020 College HillPaddy Blewer +44 (0) 20 7457 2020Nick Elwes +44 (0) 20 7457 2020 This information is provided by RNS The company news service from the London Stock Exchange