Final Approval for Camafuca Diamond Project
Angolan Government Provides Final Approval for Camafuca Diamond Project
Shares Issued and Outstanding: 102,066,601
TSX: SDM
AIM: SRE
TORONTO, Aug. 8 /CNW/ - SouthernEra Diamonds Inc. ("the Company")
(TSX: SDM, AIM: SRE) announced today that it has been advised by the state-
owned national diamond mining company of Angola, Endiama, that the government
has provided final approval and ratification for the formation of the
operating company "Sociedade Mineira do Camafuca Lda " (SMC), which will be
issued the mining licence for the Camafuca Project allowing construction of
the project to commence.
The Chairman of SouthernEra Diamonds Dr Chris Jennings said: "The news
from Luandais a much welcomed development and we look forward to commencing
the Camafuca Project with our partners in the very near future. This will once
again allow SouthernEra to become a diamond producer in line with the overall
objective of remaining a fully integrated diamond mining and exploration
company."
Camafuca is one of the largest known undeveloped diamond-bearing
kimberlite complexes worldwide and is located in the Lunda Norte province in
north-eastern Angola 20 kilometres southeast of the town of Lucapa. The
project area covers the outcropping primary kimberlite deposits associated
with the five Camafuca-Camazambo kimberlite pipes with a combined surface area
of 160 hectares.
Through a feasibility study completed in 2000 SouthernEra defined an
inferred mineral resource from surface to a depth of 145 meters of
209.5 million cubic meters at an average grade of 0.111 carats per cubic
meter, for a total resource of 23.25 million carats. An independent valuation
in 2000 attributed an average value to the Camafuca diamonds of $109 per
carat. Since then, global rough diamond prices have increased by more than
35 percent. The Company holds an 18% free-carried interest in the project.
The 2000 feasibility study was concluded while Angola was still in a
state of civil war and reflected inflated operating costs associated with the
circumstances prevailing at the time. Angola's civil war ended in 2002 and
many of the cost parameters of the feasibility study will consequently have
changed materially. The 2000 feasibility study is the most recent report on
the property and will now be updated to reflect current operating conditions.
The first meeting of the SMC partners is planned for mid August when the
process for the formation of the operating company will be confirmed and
timelines determined for the construction of the project. Information
regarding the operating parameters and construction schedule will be announced
as soon as updates are complete and ratified by all the partners.
The Company also operates the Klipspringer Diamond Mine in South Africa
which is currently on care and maintenance and is engaged in advanced diamond
exploration in the DRC, Canada, South Africa, Gabon, Zimbabwe and Australia.
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: Toronto: SouthernEra Diamonds Inc., Alasdair
MacPhee, President & CEO (acting), or Sharon Allan, Investor Relations,
Telephone: (416) 359-9282, Fax: (416) 359-9141, e-mail:
inbox(at)southernera.com; London: 4C-Burvale, Carina Corbett, Director,
Telephone: ++ 44 (0) 207-907-4761, Fax: ++ 44 (0) 207-907-4769, Email:
corbett(at)4cburvale.co.uk
(SRE SDM.)
END
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