Amendment to Announcement
Attached is an amended announcement reflecting the following changes
to the announcement entitled "Diamonex Acquires Kimberlite Pipes In
USA", released on 5 November 2007:
* References to non-JORC data has been removed from bullet
point 6 on page 2; and
* Modification to the wording of the competent person
statement on page 4
DIAMONEX ACQUIRES KIMBERLITE PIPES IN USA
* Proceeding immediately to resource definition program
* Second stage in global diamond mine development strategy
* Follows Lerala (Botswana) mine in production early 2008
In a significant expansion of its business, DiamonEx Limited has
acquired a known diamond-bearing exploration project, the Sloan 1 and
2 kimberlite pipes, in the United States of America.
Announcing the acquisition today, DiamonEx Managing Director Mr Dan
O'Neill said the US acquisition provided a second stage in the
company's strategy of acquiring and developing advanced diamond
exploration projects on a global basis.
The Brisbane-based diamond exploration, mine development and mining
company is currently bringing into production the Lerala diamond mine
in Botswana. Mining is scheduled to commence at Lerala in November
2007 and diamond production in early 2008. The Lerala Mine is
expected to produce an average of 330,000 carats per year over 10
In the United States, DiamonEx has taken out an option to purchase
the mineral rights to 160 acres (64.75 hectares) containing the Sloan
1 and 2 kimberlite pipes, in the State Line district of northern
Colorado. DiamonEx has also acquired more than 1000 acres (>400
hectares) of prospective diamond properties in the State Line and
adjacent Happy Jack districts and has identified more than 150
prospective targets in the region where the company will undertake
exploration with a view to making new kimberlite discoveries.
"DiamonEx has maintained rapid momentum in bringing the Lerala mine
into production less than four years after the company listed," Mr
O'Neill said. "We now plan to accelerate even further with the
United States project which is potentially bigger than our successful
initial development in Botswana.
"Like Lerala was when DiamonEx acquired it, the new project is
considerably advanced in that the kimberlite pipes are known to
contain diamonds. It is located in the United States which
represents 50% of the world's market for gem diamonds, yet there are
no diamond mines in the country."
Mr O'Neill said that, in making the acquisition, DiamonEx had engaged
as consultant Mr Dan Hausel, former Deputy Director and Senior
Economic Geologist with the Wyoming Geological Survey and an
authority on diamonds in the United States, who had advised that:
* Since 1998, North America has become a major source of
gem-quality diamonds and could possibly become the world's largest
* The greatest potential for the discovery of commercial
diamond deposits in the US lies within the Wyoming Craton within
which the Colorado-Wyoming State Line district is located.
* The principal primary diamond deposits in the United
States are located in the Colorado-Wyoming State Line district.
* The State Line district is the largest kimberlite
district in the US.
* More than 40 known diamond pipes and dykes had been
identified in the State Line district in the past.
* The interconnected Sloan 1 and 2 kimberlite pipes and
the transitional zone between, cover a surface area of 9.3 Ha.
* 2,698 tonnes of hypabyssal kimberlite were processed
from a 187 metre long, 2.5 x 2.5 metre adit excavated in Sloan 2 by
a previous explorer in 1994. The average grade reported was 12.68
cpht, assuming a 2mm cut off. The largest stone recovered was a
5.51 carat white octahedron. This adit explored approximately half
the know length of the Sloan 2 portion of the Sloan Ranch
* Bulk sampling from the Sloan 1 and 2 kimberlites have
yielded a total of 39,616 diamonds over the 1980's and 1990's. The
primary source of diamonds at Sloan is eclogite.
* Recovered diamonds from past exploration and mining
operations in the State Line district ranged from microdiamonds to
a 28.3 carat gemstone that reportedly sold for over US$300,000.
Gem-quality macrodiamonds greater than 5 carats in weight recovered
from past operations in the district include stones of 5.5, 6.2,
9.4, 10.5, 11.9, 14.2, 28.2 and 28.3 carats and an octahedral chip
estimated to have fragmented from a 80 to 90 carat stone.
* Diamonds from the former Kelsey Lake diamond mine in the
northern portion of the State Line district were primarily white to
colourless stones. Coloured stones trended towards honey brown.
Large canary yellow stones were also recovered including some
smaller pink and blue diamonds.
* The State Line district is located along the edge of the
Wyoming Craton. This Craton encloses the two largest kimberlite
districts and the largest lamproite field in the US along with
several hundred kimberlitic indicator mineral anomalies. The
Wyoming Craton is part of the larger North American Craton that
continues to the north under Canada where several hundred
kimberlites have been found in the past few decades including a
group of commercial diamond deposits.
Mr O'Neill said that DiamonEx would proceed immediately to a large
diameter drilling programme which would provide bulk samples that
would be evaluated for grade, with the aim of establishing a
Mr O'Neill said that the company's primary focus was getting the
Lerala Mine into production. "We continue to be committed to our
ongoing exploration effort in Botswana and will allocate appropriate
additional resources to the Sloan evaluation process", he said.
Global diamond supply deficit
"The company's US acquisition is based not only on the deposit's
production potential but also on the extremely positive outlook for
producers in the world diamond market," Mr. O'Neill said.
"Stockpiles of diamonds that dominant producers maintained for many
years are now believed to be virtually eliminated. Demand is
expected to rise at 4 to 5% a year over the next 7 years at a time
when supplies are expected to actually decline. The world is facing
this sustained under-supply because there are not enough new diamond
mining projects in the global pipeline to meet demand. Against this
background, diamond prices should increase strongly, a trend that
could be accelerated if demand from China and other emerging markets
moves in the same way as it has for metals.
"We plan to proceed rapidly to a feasibility study and associated
exploration in the United States. With cash flow expected to
commence from the Lerala mine in early 2008 , we will be in a strong
position to pursue our growth strategy based on advanced, high
potential projects in Botswana, the United States and globally," Mr
For further information, contact:
Dan O'Neill (Managing Director) Greg King
+61 7 37208944 (Office)
+61 7 37208944 (Office)
+61 7 37208988 (Fax)
+61 7 37208988 (Fax)
+61 407596942 (Mobile)
+61 411473730 (Mobile)
RFC Corporate Finance Ltd (Nomad) Fox-Davies
Capital Ltd (AIM Broker)
Tel: +612 9250 0050
Telephone: +44(0) 20 7936 5200
DiamonEx is a Brisbane, Australia-based specialist diamond company
developing a 330,000 carat per year diamond mine based on an
established 3.7 million carat resource at Lerala in eastern Botswana,
within an area that produces 35% of the world's diamonds by value.
J.P. Morgan Asset Management is the company's largest shareholder.
DiamonEx is listed on the Australian Securities Exchange (ASX), the
Botswana Stock Exchange (BSE) and the Alternative Investment Market
(AIM) in London.
Statements by DiamonEx Limited
The information in this announcement that relates to exploration
results is based on information compiled by Mr WD Hausel (B.Sc.,
M.Sc.), a member of the Wyoming Professional Geologist Association
and former Deputy Director and Senior Economic Geologist with the
Wyoming Geological Survey. Mr Hausel is a consultant to the Company
and has sufficient experience relevant to the styles of
mineralisation and types of deposit under consideration and the
activities which he is undertaking to qualify as a Competent Person
as defined by the Australasian Code for Reporting Exploration
Results, Mineral Resources and Ore Reserves. Mr Hausel consents to
the inclusion of his name in this report and to the issue of this
report in the form and context in which it appears
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