Statement re Diamond Testing Commences

SouthernEra commences diamond testing of kimberlitic bodies discovered

    in Gabon, Central Africa

 

    Shares issued and outstanding: 128,343,101

    TSX: SDM

    AIM: SRE

 

    TORONTO/LONDON, England, Jan. 23 /CNW/ - SouthernEra Diamonds Inc.

("SouthernEra") (TSX: SDM, AIM: SRE) today reported that micro-diamond testing

("MiDA") of kimberlitic bodies discovered in Gabon, Central Africa has

commenced and that 7 new kimberlitic bodies within its diamond exploration

permit areas have been discovered. This brings the number of kimberlitic

bodies discovered by SouthernEra in Gabon to 41. One of the new kimberlitic

bodies contained 5 high pressure G10 garnets in a small volume of rock

concentrate, whilst others contained diamond inclusion spinel. Both suggest

that the kimberlitic bodies have a high potential to host diamonds.

    Six of the seven newly discovered kimberlitic bodies occur within the

1,837 square-kilometer Makongonio diamond project area where SouthernEra has a

60% interest in a Joint Venture with the Gabonese mining company, COGEMAT

(35%) and GEOSCAN (5%). This permit area has historically produced the highest

value and largest stone size alluvial diamonds in Gabon, with gem-quality

diamonds of over 50 carats having been recovered. Previous exploration efforts

by competitors failed to locate the primary source of the diamonds or any

kimberlitic indicator minerals.

    Over the past 2 years SouthernEra has discovered 14 kimberlitic bodies

within this permit area including the first known pipe (approximately        

1 hectare in size) in Gabon. Some of the 'dyke-like' bodies have widths up to

21m, and sit within kimberlitic structural emplacement corridors up to 15km in

length. As announced previously, 2 out of the 2 tested kimberlitic bodies

returned positive micro-diamond results. The bodies discovered by SouthernEra

are, in all likelihood, the sources of the high value alluvial deposits.

Extensive evidence of artisinal activity exists immediately downstream of some

of these bodies. A map of the Makongonio diamond project is available on the

SouthernEra website.

    In addition, a kimberlitic dyke over 2m wide was also discovered within

the 100% owned Sud diamond permit, located approximately 60km to the northeast

of the Makongonio discoveries. Numerous kimberlitic spinel (including some

exhibiting diamond inclusion chemistry) and 10 kimberlitic garnets were

recovered from a small rock sample. Five of the garnets are high pressure

G10's exhibiting up to 12.49% chrome, these being garnet compositions

indicative of derivation from diamond stable source areas and suggest that the

rock has a high potential of containing diamonds. This body is immediately

upstream of an historic alluvial diamond occurrence, where SouthernEra

previously recovered a G10 garnet and numerous kimberlitic spinel during its

reconnaissance stream sampling campaign. A plot of the garnet chemistry is

available on the SouthernEra website.

    Commenting on these newest discoveries, SouthernEra's Senior Vice

President of Exploration, Howard Bird, said: "These recent discoveries have

added to favourable results in Gabon in 2005. It is encouraging to have found

high pressure garnets in our Gabonese discoveries, indicating high diamond

potential of the kimberlitic bodies. These 'dyke-like' bodies range in

thickness from 2m to over 21m, unlike most known 'dyke' systems that normally

occur in the 1m width range. In addition, it is evident from our sampling

results that these emplacement systems have considerable strike lengths in

excess of 10km. I am looking forward to the results of the first phase of

evaluation of these and other bodies that are soon to be evaluated".

    SouthernEra's exploration program in Gabon during 2006 will focus on

evaluating the diamond potential of the known kimberlitic bodies and to

continue to follow-up on positive kimberlitic indicator mineral stream sample

results that suggest additional bodies are to be discovered. Kimberlitic

samples from six separate bodies recently arrived in Canada for MiDA and

kimberlitic samples from a further 8 separate bodies are en route to Canada

for MiDA. The results are anticipated in the 2nd Quarter of 2006. In addition,

numerous 10 to 50 tonne mini-bulk samples will be collected from selected high-

interest bodies for macro-diamond testing. Collection of mini-bulk samples has

commenced from some of the bodies. A suitable mini processing plant has been

assembled in South Africa and is being shipped to Gabon, for 2006 sample

processing.

    In addition to the above mentioned Sud and Makongonio diamond projects,

SouthernEra has two other diamond exploration projects in Gabon; the 100%

owned Kango project where SouthernEra recently reported the discovery of two

new kimberlitic bodies and the 95% owned M'bigou project.

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

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

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

extensive diamond exploration. Others are Canada, the DRC, Zimbabwe, and South

Africa. The Company also maintains an 18 percent free-carried interest in the

Camafuca Diamond Project in Angola and operates the Klipspringer Diamond Mine

in South Africa.

 

    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, Senior

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

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

www.southernera.com; London: 4C-Burvale, Carina Corbett, Director, Telephone:

++44 (0) 207-907-4761, Fax: ++44 (0) 207-907-4769, Email:

Corbett(at)4c-burvale.co.uk

    (SDM. SRE)