DIAMOND DEVELOPMENT SouthernEra gets green light for Camafuca

ANGOLA Toronto-based SOUTHERNERA DIAMONDS has been issued a mining licence for the Camafuca project. Technically, the Angolan government's national diamond mining company, Endiama, has approved the formation of the operating company SOCIEDADE MINEIRA DO CAMAFUCA LTD (SMC), which will be issued the licence.

Camafuca is one of the largest known undeveloped diamond-bearing kimberlite complexes worldwide and is located in the Lunda Norte province, 20 km southeast of the town of Lucapa. The project area covers the outcropping primary kimberlite deposits associated with the five Camafuca-Camazambo kimberlite pipes with a combined surface area of 160 hectares.

SouthernEra's 2000 feasibility study defined an inferred mineral resource from surface to a depth of 145 meters of 209.5 million m at an average grade of 0.111 carats/m, for a total resource of 23.25 million carats. An independent valuation in 2000 attributed an average value to the Camafuca diamonds of US$109/carat. Since then, global rough diamond prices have increased by more than 35%. SouthernEra holds an 18% free-carried interest in the project.

The first meeting of the SMC partners is planned for mid-August when the process for the formation of the operating company will be confirmed and timelines determined for the construction of the project. Information regarding the operating parameters and construction schedule will be posted at www.SourthernEra.com as soon as updates are complete and ratified by all the partners.