GRN.L Regulatory News (GRN)

14 Jun 2005 08:38

Gravity Diamonds Limited14 June 2005 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 14 June 2005 Significant New Kimberlite Pipe Confirmed at Abner Range, NT - Gravity survey shows pipe potential within the size range of 1.5 and 3 hectares - Core drilling intersects diatreme facies kimberlite - Drilling underway to test size and grade potential Recent fieldwork on the Abner Range project in the Northern Territory hascontinued to upgrade the area. The program included detailed ground gravity overthe ABN21 anomaly followed by a limited diamond drilling program to obtaingeological samples of the pipe. Twenty-five FALCON(R) targets within the vicinity of ABN21 were followed up withgeochemistry and loam sampling. Ground Gravity Survey Results from the detailed ground gravity over the ABN21 FALCON(R) target areshown in Figure 1 and indicate potential for a kimberlite pipe of between 1.5and 3 hectares. The gravity survey also highlights a smaller, separate lobeimmediately to the southwest of the main anomaly, the significance of which willbe further evaluated. The results of this work further confirm the potential of the other FALCON(R)targets in the area that will be drilled later this field season. Diamond Drilling Five diamond drill holes were completed on ABN21 to test the geological natureof the kimberlite pipe during May. Details of the holes are summarised in Table1 below. Their locations are shown in Figure 1 which also indicates thelocations of RC drill holes from the 2004 program. The results of ARC001 andARC003, previously announced, returned a total of 147 microdiamonds and twosmall macrodiamonds. Table 1 Hole Inclination TD down hole Geology (m)ADD01 Vertical 24 Collar in cover sequence, kimberlite at 6.2m depthADD01a Vertical 51.6 Collar in cover sequence, kimberlite from 5.6mADD02 -52degrees 221 Soft kimberlite encountered from 192m SWADD03 Vertical 104 Kimberlite stringers in pipe marginADD04 Vertical 76 Kimberlite intersected from 9.4m /2 GRAVITY DIAMONDS 2 The kimberlite body is covered with 5-9 metres of Recent ferruginous gravels andCretaceous sediments. It intrudes flat-lying, interbedded sandstone and shale.Kimberlitic lithologies recovered in the drill core, an example of which isshown in Figure 2, are indicative of diatreme facies. Core samples recovered from the diamond drilling were of insufficient volume tosubmit for diamond analysis. A reverse circulation drilling program to define the exact area of the pipe andto recover sufficiently large sample volumes for diamond analysis is inprogress. The first analytical results from this program should be available inmid August. Regional Sampling and Target Drilling Twenty-five FALCON(R) targets within a 10 kilometre radius of ABN21 were sampledby geochemical and heavy mineral loam sampling techniques. Results from thisprogram are expected shortly and will help to guide a reconnaissance reversecirculation drilling campaign to commence after the completion of the ABN21program. The program is being carried out under the terms of an Exploration Agreementwith Rio Tinto Exploration Limited. Further Information: Phil Harman, Managing Director, Gravity Diamonds Ltd. Tel: 00-61-3-9909-7655Ron Marshman/John Greenhalgh, City of London PR Ltd. Tel: 020-7628-5518 Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/5245n_-2005-6-14.pdf This information is provided by RNS The company news service from the London Stock Exchange