London, June 29, 2007 AEST (ABN Newswire) - Petra Diamonds Limited (ASX: PDL) announces an update with regards
to the Koffiefontein mine and associated assets ('Koffiefontein').
The acquisition of Koffiefontein from De Beers Consolidated Mines Limited ('De
Beers') is expected to be completed shortly. As previously announced, Petra has
already been granted a mining licence in respect of the mine and the acquisition
from De Beers has received approval from the South African Competition
Petra has, with permission from the South African Department of Minerals and
Energy ('DME'), been maintaining the cave and drawing the corresponding ore at
Koffiefontein since July 2006. The preparatory work that Petra has been able to
undertake at Koffiefontein over recent months, together with the drawing of ore
as part of the care and maintenance process, means that the mine will, when the
acquisition completes, be able to immediately commence full production and the
stockpiled ore processed through the plant.
Over recent weeks, some of this stockpiled ore has been processed through the
plant to test changes made to the plant by Petra. Although these test results
are relatively early stage and no sales of diamonds have been made by Petra (as
are not allowed until the acquisition from De Beers is complete), initial
indications are that assumptions applied by Petra in its modeling in respect of
both grade and value per carat at Koffiefontein will be comfortably met, and
perhaps even exceeded.
Adonis Pouroulis, Chairman of Petra, commented 'The addition of the
Koffiefontein mine to Petra's South African portfolio, with anticipated
production of around 100,000 carats a year, will significantly increase Group
production, as well as increase the average price per carat received across the
Group and significantly enhance Group revenues.''On behalf of Petra, I would again like to thank both the DME and De Beers for
their efforts and support in completing the acquisition of Koffiefontein by
Petra and we look forward to returning the mine to production, an important
development for the local Koffiefontein community and all other related parties.
1. The information in this update that relates to Exploration Results, Mineral
Resources 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 South
Africa, a 'Recognised Overseas Professional Organisation' ('ROPO'). Jim Davidson
is the Qualified Person for the purposes of the AIM Guidance Note on Mining, Oil
and Gas Companies dated March 2006. Jim Davidson is a full-time employee of the
Company and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify. Jim Davidson has given his written consent to the
inclusion in this announcement of the matters based on his information in the
form and context in which it appears.