APRIL 4 2010:”Shareholders of African Diamonds will smile the longest after this week’s revelations that a resource update at AK6 is higher than previously estimated.
The company said an e-mailed statement that new estimates indicate resource of just over 51 million tonnes at an average grade of 22 carats per hundred tonnes (cpht).
It indicated an average modelled diamond value of US$194 per (P1, 306) carat, and an inferred resource of approximately 20 million tonnes at an average grade of 19 cpht and an average modelled diamond value of US$183 (P1, 232)per carat.
This contrasts to previously indicated resource of 40 million tonnes and an inferred resource of 31 million tonnes in earlier estimates.
The resource update was conducted as part of an ongoing feasibility study and concurrent with the NI43-101 report which has been filed by Lucara, our joint venture partner.
The resource estimate is based on a comprehensive evaluation of the AK6 kimberlite by Boteti between 2003 and 2007. Tonnage estimates are based on 22,744 meters of delineation core drilling in 69 holes and 26 large diameter (23 inch) holes on a 50 x 50 metre grid across the pipe.
Two of the large diameter holes achieved depths of 700 and 702 meters respectively.
Diamond value estimates are based on the recent valuation carried out by Mercury Diamond and reported in February 2010.
MSA augmented the Mercury Diamond valuation by incorporating micro diamond information into the diamond size frequency distribution to develop a more robust statistical model and to assess observed diamond size variations between the Centre and North Lobes as compared to the South Lobe.
The resource estimate has been compiled by Johannes Ferreria, a professional geostatistician with 30 years experience in geostatistical modelling of diamond deposits worldwide and a Qualified Person as that term is defined by NI 43-101.