Drilling Report

SouthernEra's Democratic Republic of Congo (DRC) Kimberlite Program

    Returns Positive Kimberlitic Sampling Results

 

    Alluvial diamond evaluation program commences

    Shares Issued and Outstanding: 100,566,601

    TSX: SDM

    AIM: SRE

 

    TORONTO, April 6 /CNW/ - SouthernEra Diamonds Inc. ("the Company") (TSX:

SDM, AIM: SRE) announced today that ground follow-up of kimberlite targets

generated from recent airborne geophysics is returning positive kimberlitic

sampling results. Additionally, the Company announced that it has commenced

alluvial diamond testing within the first of its seven separate alluvial

projects in the Democratic Republic of the Congo (DRC).

    Since 2003, SouthernEra has secured a large and outstanding portfolio of

exclusive diamond exploration permits covering 13,614 square kilometers

located within the diamond-rich Kasai Provinces of the DRC. The majority of

the permits lie within a 'kimberlite emplacement corridor', which is underlain

by Archean basement granite-gneiss of the Congo Craton, and extends from the

DRC southwest into the renowned diamond producing Lunda Norte Province in

neighboring Angola, which hosts the massive 23.2 million carat Camafuca

kimberlite complex in which the Company has an 18 percent free-carried

interest. This corridor is considered the world's most prospective and largest

new diamond exploration opportunity. The known kimberlites in this region are

of exceptional size and grade, and the potential for new diamondiferous

kimberlite discoveries in this region of the DRC is rated very high.

    Last October, SouthernEra completed over 43,000 line-kilometres of

airborne magnetic and radiometric geophysical surveys under contract with

Fugro Airborne Surveys (Pty) Ltd. The surveys covered 21 of SouthernEra's

41 exclusive diamond exploration permits in the DRC. These 21 permits

collectively comprise three separate primary kimberlite project areas; known

as the Kito, Nyota and Akiki blocks. These three project areas are focused in

the diamond-rich Kasai-Oriental Province, which has produced two of the    

'top-ten' largest gem quality diamonds in the world and in the mid-1980's was

producing up to 20 million carats of diamonds per year.

    The geophysical data was integrated and merged with composites from

satellite imagery and has to date generated 34 high priority targets and

numerous moderate priority targets which, from their magnetic signature,

resemble kimberlite pipes. The diameter of each of these bodies is estimated

from 170 to 750 meters. Of the 34 high priority targets about half are classic

dipolar anomalies.

    Independently, the selected targets have been compared with detailed

historical data relating to diamond finds and production recorded by companies

producing diamonds before the DRC's independence in the 1960's, as well as

with current informal digging activities. This comparison has revealed the

proximity of some the airborne targets to known alluvial reserves, indicating

that they could potentially be the source rocks for the alluvial diamond

occurrences.

    In the Kito Block, which is centered on a region where diamonds are both

of high quality and value, a number of the nineteen identified targets are

also encouragingly close to areas of known alluvial diamond production. The

Nyota Block has yielded two out of eight identified targets, which coincide

almost exactly with proven high grade alluvial reserves (up to 29 carats per

cubic meter), and three more targets appear very well positioned as potential

sources of the alluvial diamonds. Informal artisinal diamond digging is

widespread throughout this area, with one target located less than 200 meters

upslope of current colluvial workings. Within the Akiki Block, stream samples

collected by SouthernEra have returned kimberlitic indicator minerals

(including several unique suites of kimberlitic ilmenite) immediately

downstream of the seven identified airborne targets.

    The regional and detailed site-specific stream and soil sample follow-up

of the aeromagnetic survey targets is progressing as scheduled. Ground

geophysical surveys to further define high interest airborne targets are set

to commence.

    In addition to the above primary kimberlite projects, SouthernEra has

also secured high interest alluvial diamond permits within the

Tshikapa/Kasai/Luebo alluvial diamond field in the Kasai-Occidental Province,

and also within a second major alluvial diamond field in the Kasai-Oriental

Province (actually located within the Nyota project area). These permit areas

collectively constitute seven separate major alluvial projects. Following a

review of the alluvial diamond potential within these permit areas, a

SouthernEra exploration base has been established in the town of Tshikapa,

which will become the center of feasibility studies into SouthernEra's

alluvial projects in the Kasai Occidental Province.

    The Belgian mining company, Forminière, extracted approximately

14.5 million carats from the Tshikapa region up until 1955 mainly from

mechanized mining of terrace deposits. This area has historically produced the

highest value diamonds reported in the DRC. Current alluvial active channel

dredging operations occur both upstream and downstream outside of the

SouthernEra permits, as well as active artisinal terrace mining. SouthernEra's

diamond recovery equipment has been transported to this region and testing of

the first of the seven separate alluvial diamond projects has commenced with

encouraging early results. Following the assembly and commissioning of a

gravel suction dredge and recovery plant during the next few weeks, evaluation

of the active river channels will commence to determine the nature of the

diamond deposits and best mining method.

    In addition to the active river channels, significant diamond potential

occurs within large alluvial flats within the permit areas. A systematic

seismic geophysical program will commence within weeks to define the bedrock

topography beneath the alluvial flats in order to establish the locations of

paleochannels which are expected to host high grade concentrations of gravel

within the alluvial flats system. Following the completion of the geophysical

surveys and interpretation of the results selected areas will be evaluated by

Banka drilling, pitting and bulk sampling. The potential of the alluvial

terraces in the project area will be investigated later this year.

    In June 2003 the DRC Mining Registry (Geological Survey) was opened for

the first time under the new World Bank-sponsored Mining Code (Law 007/2002).

The new Mining Code has encouraged renewed interest on the part of diamond

mining and exploration companies in the DRC, including the major producers De

Beers and BHP-Billiton. The implementation of the new Mining Code, led by the

Ministry of Mines and the Mining Registry, has been carried out in an

encouragingly efficient and transparent manner. In the case of diamond

exploration, the Mining Code gives permit holders exclusive rights for a

period of four years, renewable for two additional two-year periods. On

discovery of an economic deposit, the holder can automatically apply for a

mining permit.

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

43-101 responsible for the technical information in this release. All stream

and soil samples collected for the recovery of kimberlitic indicator minerals

are processed at SouthernEra's in-house diamond laboratory located in

Polokwane, South Africa.

    The DRC is one of five countries in which SouthernEra is engaged in

advanced diamond exploration. Others include Canada, South Africa, Gabon, and

Australia. This represents the fourth most active global diamond exploration

program after the majors DeBeers, BHPB and Rio Tinto. 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.

 

    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

    (SDM. SRE)