African Diamonds

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  10/06/10

  African Diamonds readies new drill campaign in Botswana

  The group believes it is time to explore the AK8, AK9 and BK5 kimberlites while the feasibility study for its flagship AK6 looks set to be cleared by the board at the end of June.

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  20/05/10

  African Diamonds’ AK6 poised to deliver the goods at last

  …the South lobe contains a relative abundance of the rare Type IIa diamonds, which contain virtually no nitrogen, and can – like the Cullinan and Koh-i-noor diamonds - be large and extremely valuable

• 

  11/11/09

  African Diamonds and Lundin backed Lucara to push AK6 ahead after De Beers exits

  Ironically, AK6 is situated on ground once held by DeBeers prior to 2002, and it was through a DeBeers / African Diamonds joint-venture that the pipe was discovered in 2004.

• 26/11/10

  African Diamonds shareholders vote for takeover by Lucara

• 02/11/10

  African Diamonds says AK6 is progressing on track

• 21/10/10

  African Diamonds rejects ex-directors' royalty claim on AK6 diamond discovery

• 04/10/10

  African Diamonds recommends Lucara takeover offer

• 13/08/10

  African Diamonds confirms unsolicited takeover approach

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  17/11/2009

  John Teeling, Executive Chairman of African Diamonds, talks to Proactiveinvestors

  John Teeling, Executive Chairman of African Diamonds, talks to Proactiveinvestors

African Diamonds PLC (AFD) was listed on the AIM market in London in July 2003 at 7p and on the Botswana Stock Exchange in February 2005. 

AFD is a diamond explorer developing the world class AK6 diamond mine in Botswana and exploring highly prospective diamond ground in Botswana and the DRC. The Company is chiefly focused on the Orapa region of Botswana, the most prolific diamond exploration and mining 'address' in the world, where the AK6 deposit is located. The AK6 mine is the only significant commercial diamond discovery in recent years.

A Mining Licence was granted on AK6 for 15 years in October 2008 and production is expected from the 9.5Ha kimberlite pipe in 2011. Ownership of the deposit is AFD 29% and Lucara 71%.  

AK6 - Resource to 372m (+1mm)
- 8.9M carats and 40M tonnes
- Average grade 22cpht & modelled diamond value USD$137/ct
- Significant quantities of rare, high value, Type II diamonds

Below 372m, there is an additional kimberlite - 372-756m: 6.2M carats

In addition to AK6, AFD holds a 100% interest in the AK8 and AK9 kimberlite pipes.

AK8 is a 5Ha kimberlite pipe located 10km from AK6 and 10km away from the Debswana Orapa Mine. Studies suggest a resource of 20M tonnes to 300m, with a modelled diamond value of USD$35-190/carat.

AK9 is a 3Ha kimberlite pipe located 10km from AK6 and 20km away from the Debswana Orapa Mine. Studies suggest a resource of 11M tonnes to 250m.

Along with the Botswana interests, AFD also has significant diamond investments in the DRC, through a 35% investment in Bugeco and in West Africa, through a 9% interest in West African Diamonds PLC.

Boteti Joint Venture
   
- Boteti Joint Venture formed 2004. The AK6 discovery was in October 2004
- Share 49/51. AFD/DB changing to 30/70 on completion of the first Bankable Feasibility Study   
  (BFS)
- De Beers pay 100% of all costs until bankable feasibility, thereafter each side pays its way
- All diamond production contracted to the Diamond Trading Company (DTC)
- Mines with annual revenue of less than $70m will be operated by African Diamonds who will
  receive 70% of the gross profit.  Diamonds still go to the DTC 

African Diamonds (AIM: AFD) and De Beers have signed an agreement to establish a joint venture company to explore for, and if successful, develop new diamond mines in Botswana. Ownership of the joint venture will initially be 49% African Diamonds and 51% De Beers with De Beers funding the joint venture through to Bankable Feasibility Study. De Beers' shareholding will rise to 70% upon completion of the first bankable feasibility study. The size of any mine resulting from the joint venture will decide whether it is managed by De Beers or African Diamonds with larger mines operated by De Beers and those below an agreed threshold operated by African Diamonds, who will receive a preferential profit share in those operations of Newco. [READ MORE]

AK6

The AK6 deposit is situated approximately 15km south west of Letlhakane. A world class diamond discovery, African Diamonds' Joint Venture partner in Boteti Exploration Company is Lucara (71%). African Diamonds holds 29%. Once on stream, AK6 will be in the top 5 hard rock diamond mines in the world when measured by Profit/Revenue ratio. [READ MORE]

AK8
AK8 is 100% owned by African Diamonds. Pipe AK8 is now estimated from ground geophysics at around 5 hectares in size. Fifty-four stones weighing a total of 6.33 carats including one 2.26-carat stone, were recovered from the 98 tonnes extracted from four holes in the kimberlite using 12-inch drilling. Two of the four holes were negative and two were positive for macrodiamonds. The negative holes drilled into significant intersections of basalt and basalt breccia, despite the fact that their adjacent pilot holes intersected kimberlite. Of the three positive holes, one sampled 154m of kimberlite, of which 80m was highly diluted (80%) by basalt breccia. One hole which sampled some 151m of consistent kimberlite yielded 4.395 carats from 26.44 tonnes of.sample. [READ MORE]

AK9
AK9 (3Ha) is 100% owned by African Diamonds and is located 10km away from AK6 and 20km away from the Orapa Mine. The local infrastructure is excellent. Development opportunities are currently being explored. There is the potential for AK9 to be a small mine or feeder to AK6. [READ MORE]

Exploration Projects

Botswana remains the 'best diamond address' in the world and African Diamonds (AFD) holds several prospecting permits in Botswana, work programmes of which are summarised below;

Kedia Project - Prospecting Licences 84/2007, 85/2007, 193/2007, 194/2007 and 195/2007)
All five prospecting licences delineating the Kedia project (figure 1 below) are issued to Kukama Mining and Exploration (Pty) Limited, a wholly owned subsidiary of AFD. The Kedia project is located proximal to the Orapa kimberlite province, some 120km southwest of the Orapa kimberlite cluster, covering a total surface area of 3481km2. The region of Kedia village had been previously prospected for diamonds by a number of diamond explorers, many of which remain active in the area to date. AFD is following up on indicator mineral studies, including more detailed surface texture assessments and re-assessments of indicator chemistry. The area remains highly prospective, with potential for more prominent anomaly definitions.

Mmashoro Project - Prospecting Licence 50/2004
The licence is issued to Kukama Mining and Exploration (Pty) Limited, a wholly owned subsidiary of AFD. The three year exploration work concluded in the licence area includes soil sampling, detailed magnetic survey and lithological mapping (percussion drilling). The findings of the integrated study of the three detailed studies proved lack of prospect for kimberlite discovery in the southern portion of the licence area, resulting in the relinquishment of this portion of the licence area (below the yellow line in figure 2 below). Following the relinquishment of the southern portion of the licence area, representing 53% of the original granted, work on the remaining 47% is being re-prioritised for possible further targets for diamond exploration. The remaining licence area spans 463.3km2, from the original granted on 1st July 2004, covering 981.3km2 in the Central District. The licence area is centered on the village of Malatswae to the west of the larger regional centre of Mmashoro. The licence area straddles the Serowe-Letlhakane Highway and lies some 40km to the southeast of the Lethlakane Diamond Mine. Immediately prioritised work includes targeted recovery of course grained indicator grains.

John Teeling
Executive Chairman
John Teeling has been involved in resources projects for 30 years. John is the founder and chairman of Pan Andean Resources PLC, Petrel Resources PLC, African Diamonds PLC and Persian Gold PLC. He is also a former director of Kenmare Resources Limited and Arcon Limited. John Teeling holds degrees in Economics and Business from University College Dublin, an MBA from Wharton and a Doctorate in Business Administration from Harvard. He holds interests in a number of industrial ventures.

James Campbell
Managing Director
James Campbell worked for De Beers for over 20-years, culminating in being General Manager responsible for resource delivery in the global exploration and mining group. During his career with De Beers he has also led small-scale mine development as well as being involved in corporate management and being Nicky Oppenheimer’s Personal Assistant. He holds a degree in Mining & Exploration Geology from the Royal School of Mines and an MBA with distinction from Durham University. James is a Fellow of the Institute of Mining, Metallurgy & Materials, Chartered Engineer (UK), Chartered Scientist (UK) and a Professional Natural Scientist (RSA).

James  Finn
Non-Executive Director and Company Secretary
James Finn is the senior financial executive of a group of resource companies since 1988. He holds a management degree and accounting qualifications. He is also a director of Cooley Distillery, Minco and Pan Andean Resources.

David Horgan
Non - Executive Director
David Horgan is a director of African Gold and Chief Executive of Pan Andean Resources and Petrel Resources. He holds a first class law degree from Cambridge and an MBA with distinction from the Harvard Business School. David Horgan has invested in and managed African projects for 10 years

Alex  van Zyl
Executive Techincal Director
Alex van Zyl has over 40 years of experience in diamond exploration and mining. He worked as Consulting Geologist in Senior Management for Anglo American and De Beers Consolidated Mines Ltd over the past 15 years, during which period he was directly responsible for diamond exploration, evaluation and mining projects throughout the world.He is best known for his personal involvement in the discovery and development of the Venetia diamond mine in South Africa. Under his leadership De Beers discovered and evaluated numerous new kimberlites in Africa, Canada, Russia and various other parts of the world.

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