94% Revenue per Ton Increase at Klipspringer
94% Revenue per Ton Increase at Klipspringer Diamond Mine
Shares Issued and Outstanding: 165,954,229
TSX: SDM
AIM: SRE
TORONTO and LONDON, Dec. 5 /CNW/ - SouthernEra Diamonds Inc. (the
"Company") (TSX: SDM, AIM: SRE) is pleased to announce a substantial increase
in revenue per ton at its 57% owned Klipspringer Diamond Mine
("Klipspringer"), over results achieved in 2003, the last year of full
production.
A trial mining project commenced in September 2006 to evaluate an
alternative mining method focused on grade control rather than the bulk mining
method applied previously. A secondary objective was to recover a sufficient
number of diamonds to assess the impact of increased diamond prices since
2003.
The recovered grade in the trial mining averaged 61.2 cpht, which is 57%
above the average achieved in 2003. A total of 4,007 carats recovered during
this exercise have been sold at an average price of $100/carat pointing to a
23% increase in diamond values since 2003. The largest diamond recovered to
date since trial mining began was a 22.75 carat stone.
The trial mining results to-date are tabled below:
Trial Mining Average
2006 2003 % Variance
Recovered grade (cpht)(x) 61.2 38.9 57%
Value ($/carat) 100 81 23%
$/ton 61.2 31.6 94%
(x) carats per hundred ton
President and CEO Alasdair MacPhee said, "Revenue per ton has increased
in excess of 90% and overall the results to date have exceeded our
expectations, particularly the improvement in grade. Should the results
continue, operating margins will be robust even in the current strong South
African Rand environment. The 23% diamond price increase is also very
encouraging as the $100 price was achieved in a period of softening global
rough diamond prices within 2006. Prices are expected to improve in the short
to medium term. We will be continuing the trial mining program on an increased
scale while reviewing other aspects of the operation in order to make a firm
decision on the various options available for Klipspringer by early 2007."
Mr. Uwe Naeher (P.Geo), SouthernEra's Western Exploration Manager, is the
qualified person, under NI 43-101, responsible for the technical information
in this release. Mr. Naeher has read the contents of this release.
SouthernEra Diamonds is one of Canada's largest fully integrated diamond
companies with extensive diamond exploration in five countries including
Canada, Gabon, the DRC, Zimbabwe and South Africa. The Company also 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., Alasdair MacPhee,
President and CEO, or Sharon Allan, Investor Relations, Telephone: (416)
359-9282, Fax: (416) 359-9141, 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.)
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