Drilling Report

SouthernEra Recovers the First Diamonds from the Makongonio Diamond

    Project in Gabon , West Africa

 

    Shares Issued and Outstanding: 85,380,418

    TSX: SDM

    AIM: SRE             

 

    TORONTO, Dec. 2 /CNW/ - SouthernEra Diamonds Inc ("SouthernEra")    

(TSX: SDM, AIM: SRE) today announced the recovery of microdiamonds from the

first two "meta-kimberlite" bodies recently discovered within the COGEMAT

Joint Venture 'Makongonio' diamond exploration permit in southern Gabon,

Central Africa. SouthernEra has a 60 percent interest in the 1837 km(2)

project and are the operators. Two Gabonese companies, COGEMAT and GEOSCAN

remain with 32.5 percent and 7.5 percent of the project, respectively. In

addition to Makongonio, SouthernEra has three other diamond exploration

projects in Gabon, the 100 percent owned Kango and Sud projects, and the 95

percent owned M'bigou project.

    SouthernEra Diamonds has actively explored for diamonds in Gabon since

1999, initially targeting the Makongonio Project based on the area

traditionally producing the highest value and largest stone size alluvial

diamonds in Gabon. Over 36,000 carats of alluvial diamonds were commercially

mined in the mid-1950's by SOREDIA. Extensive artisinal mining currently

occurs in the area, but the production is unknown. Historically, this alluvial

diamond field, which lies within the Makongonio Project area, has produced two

gem-quality diamonds of over 50 carats, as well as an 85.5-carat boart.

    On October 6, 2004, SouthernEra announced the discovery of eight possible

kimberlitic bodies sub-cropping in various streams that are positive for

kimberlitic indicator minerals (KIMs). Kimberlitic spinel, some with diamond

inclusion chemistry, was identified in all of the bodies, and exhibits mineral

chemistry similar to spinel recovered from regional stream sampling campaigns.

This suggests that these rock types are the source of this spinel. One of the

eight bodies, Mak-001, is a hypabyssal-facies pipe at least 70 meters in one

dimension by a minimum of 25 meters in another, and is the first known

kimberlite pipe discovered in Gabon.

    Two meta-kimberlite samples from two different bodies were tested in

Canada for microdiamonds at SGS Lakefield Research Limited. The first sample,

MK-01, returned one microdiamond from 100.21 kilograms of "meta-kimberlite"

collected from pipe Mak-001. The second sample, MK-02, returned eight

microdiamonds from 100.20 kilograms of "meta-kimberlite" from body Mak-002, a

7.5 meter wide dyke. Both samples, MK-01 and MK-02, were collected from pits

dug into Mak-001 and Mak-002, respectively. The microdiamond results are

tabulated in Table 1. The colors, clarity and shape of the diamonds recovered

are summarized in Table 2.

 

 

    Table 1. Square Mesh Sieve diamond results for samples MK-01 and MK-02.

    --------

 

    -------------------------------------------------------------------------

    Sample      Sample Wt.    +0.300    +0.212    +0.150    +0.105    TOTAL

                  (kg)          mm        mm        mm        mm

    -------------------------------------------------------------------------

    MK-01        100.21          0         0         0         1        1

    -------------------------------------------------------------------------

    MK-02        100.20          0         1         1         6        8

    -------------------------------------------------------------------------

 

 

    Table 2. Color, Clarity and Shape Summary for the diamonds recovered

    --------                from samples MK-01 and MK-02.

 

    -------------------------------------------------------------------------

                 No. of

    Color        Stones  Transparent  Translucent  Opaque  Macle  Octahedron

    -------------------------------------------------------------------------

    All Stones      9         7            2          0      6        3

    -------------------------------------------------------------------------

    White           7         5            2          0      5        2

    -------------------------------------------------------------------------

    Off White       2         2            0          0      1        1

    -------------------------------------------------------------------------

 

    Commenting on the diamond results, SouthernEra's President and CEO,

Patrick Evans, said: "We are very pleased with this discovery, which is the

first discovery of diamonds from a primary source rock in the Makongonio

diamond field. We have every reason to believe that the high value alluvial

diamonds found in this area are sourced locally from kimberlitic bodies. An

intense exploration program is continuing to further explore the Makongonio

meta-kimberlites".

    Following the initial discovery of the sub-cropping meta-kimberlitic

bodies, diamond core-drilling commenced to test surface kimberlitic indicator

mineral anomalies generated by soil loam sample grids. As announced on

November 10, 2004, this program resulted in the discovery of numerous meta-

kimberlite dykes with intersected estimated true widths of "massive" meta-

kimberlite up to 5.9 meters, within a breccia zone extending an estimated true

thickness of 20.5 meters. This wide breccia dyke sits within a north/south

trending corridor of KIM positive stream samples that strikes 15 kilometers in

length. Artisinal diamond workings occur extensively within this corridor. The

meta-kimberlite drill core is currently being packaged for shipment to Canada

for diamond testing. The diamond drill testing program will continue until mid-

December and will recommence early in the New Year.

    Mr. Uwe Naeher, Professional Geologist, is the qualified person, under NI

43-101, responsible for the technical information in this release. The samples

for microdiamond recovery were analyzed using SGS Lakefield's standard caustic

fusion diamond recovery method. SGS Lakefield is accredited by the Standards

Council of Canada to the ISO 17025 standard for specific registered tests.

    Gabon is one of five countries in which SouthernEra is engaged in

extensive diamond exploration. Others include Canada, Australia, the DRC and

South Africa. The Company also operates the Klipspringer Diamond Mine in South

Africa and maintains an 18 percent free-carried interest in the Camafuca

Diamond Project in Angola. This represents the fourth most active global

diamond program within 5 of the top 8 diamond producing countries after the

majors DeBeers, BHPB and Rio Tinto.

 

    Some statements contained in this news release are forward-looking and,

therefore, involve uncertainties or risks that could cause actual results to

differ materially. Such forward-looking statements include comments regarding

exploration work. Actual results could differ materially from those

anticipated. The Company disclaims any obligation to update forward-looking

statements.

   

   

    For further information: SouthernEra Diamonds Inc. - Howard Bird,

Vice President Exploration, or Sharon Allan, Investor Relations, Telephone:

[phone], Fax: [phone], E-mail: inbox(at)southernera.com,

www.southernera.com

    (SDM. SRE)