| Fri 28 Jul 2006, 8:00 | | Diamond Core - Granting And Conversion Of Prospect |
|
DMR
DMR
Diamond Core - Granting And Conversion Of Prospecting Rights Over Various Farms
DIAMOND CORE RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/013468/06)
Share code: DMR ISIN Number: ZAE000076956
("Diamond Core" or "the company")
GRANTING AND CONVERSION OF PROSPECTING RIGHTS OVER VARIOUS FARMS
Diamond Core Resources Limited ("the Company") is pleased to announce the
conversion, and grant, of prospecting rights over the Portion Re of Skeyfontein
536, as well as the various farms in the Kao River Valley; collectively referred
to as the Kao Valley Project.
Commenting on the conversion and granting of the new order rights, as well as on
the exploration Projects, Theo Botoulas, CEO of Diamond Core, said "The stock in
trade of an exploration Company is access to exploration acreage via prospecting
rights and the ability to efficiently explore the acreage which has been
granted. Both the Skeyfontein as well as the Koa Valley Project falls within the
stated objectives of the Company, two of which are to conduct systematic
greenfields exploration and to bring to account economically viable discoveries.
As part of its strategy the Company will continue to explore for new
economically viable diamondiferous deposits in a focussed and systematic manner
in the Northern Cape Province of South Africa."
Koa Valley Project
The Koa Valley Project is a conceptual, greenfields exploration Project in the
Diamond Core portfolio.
The details of this announcement have been sourced from the Competent Persons
Report which is available on the Company website, www.diamondcore.co.za.
Geology and Modelling
The Koa River Valley is generally believed to be an ancient course of the Orange
River, developed soon after the break-up of Gondwanaland, and can be followed
for some 150km from near Stofvlei in the south to the current Orange in the
vicinity of Goodhouse in the north. The palaeo-valley is up to 12km wide in
places. This ancient river course, which is the focus of attention of this
project, is covered by many metres of Kalahari sand, thickening towards the
north. In the project area, the Kalahari comprises semi-stabilised to migrating
dunes, and has been shown to be as much as 70m thick. Ancient gravel terraces of
the Koa Valley are occasionally exposed in salt pans. Diamonds have been found
in three pans, namely the Bosluis, Bitterputs and Galputs.
The diamonds found in the Koa Valley are presumed to have been deposited during
the transport of diamonds eroded from kimberlite pipes and fissures situated in
the hinterland. Deposition ceased when the Orange either returned to, or was
diverted into, its present course. The gravels of the lower Koa Valley have been
considered as a conceptual target by several small companies over the years, but
exploration has been frustrated by thick sand cover. To date no drilling or
geological modelling of the area has been carried out by Diamond Core.
Recent Exploration
After reviewing the area for Diamond Core, Robert Cooke Mineral Consultants
("RCMC"), a geological consulting Company, highlighted two (2) large-scale
exploration target areas, namely the Bosluis-Galputs area and the lower Koa
River Valley area. To date, no work has been carried out for Diamond Core on the
Bosluis- Galputs area. At present, mining in the Koa River Valley is confined to
operations by Galputs Minerals (Pty) Ltd and Kori Diamond Mining. No historical
mining information is available. RCMC undertook a preliminary geological study
over the Lower Koa River Valley. This study highlighted two main target areas,
which are considered by RCMC to have potential of containing diamondiferous
gravels.
Future Exploration Plan and Budget
RCMC has proposed that the first step in the exploration of the area should
entail the drilling of 14 scout reverse circulation boreholes in order to
rapidly determine whether gravels are present on the bedrock of this large
palaeo-Orange River feature.
If positive drilling results are obtained, a more comprehensively designed
exploration programme could be undertaken including various geophysical methods
to map the bedrock, gravel layers and overburden.
If drilling results prove negative, a decision will be taken whether the Project
warrants further work in terms of various geophysical methods to identify
additional drilling targets.
The proposed borehole sites have been selected in areas near, and more
importantly downstream, of cross cutting features and irregularities in the
bedrock that may have resulted in change in the hydrological energy intensity.
The more resistant quartzite beds are the main targets. Areas located towards
the expected centre of the drainage valley have also been selected. The
boreholes will be drilled 500 metres apart. It is expected that the average
depth of the boreholes will be
30 metres. The budget for this initial
exploration work is R 150 000.
A diagram showing the Project area is available on the Company website at
www.diamondcore.co.za.
Sefalana
The Koa Valley project is held in a 50:50 joint venture in Samadi Exploration
(Pty) Limited with Sefalana Resources (Pty) Limited, a broad based black
empowerment consortium headed by Mr Lesedi Rakgokong, as per the terms of an
Agreement more fully described in the Circular to shareholders dated 3rd
February 2006.
Skeyfontein
The Skeyfontein project is held in a 50:50 joint venture in Dikeing Mining (Pty)
Limited with the Skeyfontein Communal Property Association ("CPA").
Portions 1, 2 and 3 of the farm Skeyfontein are held under a new order
Prospecting Right, and the conversion of the old order right under which the
remaining extent of Skeyfontein was previously held now aligns all the
prospecting rights in the joint venture under the new order.
Future Exploration Plan and Budget
R 1 200 000 has been allocated to the project for the next six months and the
exploration programme has been designed to locate further kimberlite bodies on
Skeyfontein and to investigate these occurrences by means of indicator mineral
chemistry, percussion drilling and, where the targets merit it, diamond
drilling.
For more information on Diamond Core Resources Ltd, please visit our website on
www.diamondcore.co.za.
28th July 2006
Epsom Downs
Sandton
Sponsor
River Group
Date: 28/07/2006 08:00:05 AM Produced by the JSE SENS Department
