Sirius Real Estate Regulatory News (SRE)

9 Aug 2005 06:01

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 governmenthas provided final approval and ratification for the formation of theoperating company "Sociedade Mineira do Camafuca Lda " (SMC), which will beissued the mining licence for the Camafuca Project allowing construction ofthe project to commence. The Chairman of SouthernEra Diamonds Dr Chris Jennings said: "The newsfrom Luandais a much welcomed development and we look forward to commencingthe Camafuca Project with our partners in the very near future. This will onceagain allow SouthernEra to become a diamond producer in line with the overallobjective of remaining a fully integrated diamond mining and explorationcompany." Camafuca is one of the largest known undeveloped diamond-bearingkimberlite complexes worldwide and is located in the Lunda Norte province innorth-eastern Angola 20 kilometres southeast of the town of Lucapa. Theproject area covers the outcropping primary kimberlite deposits associatedwith the five Camafuca-Camazambo kimberlite pipes with a combined surface areaof 160 hectares. Through a feasibility study completed in 2000 SouthernEra defined aninferred 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 cubicmeter, for a total resource of 23.25 million carats. An independent valuationin 2000 attributed an average value to the Camafuca diamonds of $109 percarat. 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 astate of civil war and reflected inflated operating costs associated with thecircumstances prevailing at the time. Angola's civil war ended in 2002 andmany of the cost parameters of the feasibility study will consequently havechanged materially. The 2000 feasibility study is the most recent report onthe property and will now be updated to reflect current operating conditions. The first meeting of the SMC partners is planned for mid August when theprocess for the formation of the operating company will be confirmed andtimelines determined for the construction of the project. Informationregarding the operating parameters and construction schedule will be announcedas soon as updates are complete and ratified by all the partners. The Company also operates the Klipspringer Diamond Mine in South Africawhich is currently on care and maintenance and is engaged in advanced diamondexploration 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 todiffer materially. Such forward-looking statements include comments regardingexploration work. Actual results could differ materially from thoseanticipated. The Company disclaims any obligation to update forward-lookingstatements. For further information: Toronto: SouthernEra Diamonds Inc., AlasdairMacPhee, 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.)ENDSOUTHERNERA DIAMONDS INC