Koffiefontein Update

29 Jun 2007 08:56

Petra Diamonds Ld29 June 2007 Petra Diamonds Limited Koffiefontein - Update Petra Diamonds Limited ("Petra" or "the Group") announces an update with regardsto the Koffiefontein mine and associated assets ("Koffiefontein"). The acquisition of Koffiefontein from De Beers Consolidated Mines Limited ("DeBeers") is expected to be completed shortly. As previously announced, Petra hasalready been granted a mining licence in respect of the mine and the acquisitionfrom De Beers has received approval from the South African CompetitionCommission. Petra has, with permission from the South African Department of Minerals andEnergy ("DME"), been maintaining the cave and drawing the corresponding ore atKoffiefontein since July 2006. The preparatory work that Petra has been able toundertake at Koffiefontein over recent months, together with the drawing of oreas part of the care and maintenance process, means that the mine will, when theacquisition completes, be able to immediately commence full production and thestockpiled ore processed through the plant. Over recent weeks, some of this stockpiled ore has been processed through theplant to test changes made to the plant by Petra. Although these test resultsare relatively early stage and no sales of diamonds have been made by Petra (asare not allowed until the acquisition from De Beers is complete), initialindications are that assumptions applied by Petra in its modeling in respect ofboth grade and value per carat at Koffiefontein will be comfortably met, andperhaps even exceeded. Adonis Pouroulis, Chairman of Petra, commented "The addition of theKoffiefontein mine to Petra's South African portfolio, with anticipatedproduction of around 100,000 carats a year, will significantly increase Groupproduction, as well as increase the average price per carat received across theGroup and significantly enhance Group revenues." "On behalf of Petra, I would again like to thank both the DME and De Beers fortheir efforts and support in completing the acquisition of Koffiefontein byPetra and we look forward to returning the mine to production, an importantdevelopment for the local Koffiefontein community and all other related parties." Notes 1. The information in this update that relates to Exploration Results, MineralResources or Ore Reserves is based on information compiled by Jim Davidson, Pr.Sci Nat (reg No 400031/06), who is a Member of the Geological Society of SouthAfrica, a 'Recognised Overseas Professional Organisation' ('ROPO'). Jim Davidsonis the Qualified Person for the purposes of the AIM Guidance Note on Mining, Oiland Gas Companies dated March 2006. Jim Davidson is a full-time employee of theCompany and has sufficient experience which is relevant to the style ofmineralisation and type of deposit under consideration and to the activity whichhe is undertaking to qualify. Jim Davidson has given his written consent to theinclusion in this announcement of the matters based on his information in theform and context in which it appears. For further information, please contact:Louise Goodeve / Samantha Dunning Telephone: +44 (0) 20 7851 7480Parkgreen Communications, London Adrian Hadden/Chris Rollason Telephone: +44 (0) 20 7523 8350Collins Stewart plc This information is provided by RNS The company news service from the London Stock Exchange