AngolaPetra Diamonds is making good progress exploring an area of Angola about 100 kms east of the MTX properties. On his recent trip to Angola, Peter visited the Petra Diamonds field camp. One difference between the two areas is that Petra’s exploration area is for the most part covered by about 30 meters of alluvial gravels – existing kimberlites in MTX’s exploration area are much more near surface. Now let's see if MTX can find its own "world class Angolian deposit.
P10
More diamond promise in Angola, and more
By: Gareth Tredway
Posted: '20-JUN-06 19:07' GMT © Mineweb 1997-2004
JOHANNESBURG (Mineweb.com) --Petra Diamonds, the Angolan diamond explorer, says geochemistry of Kimberlites on its Alto Cuilo concession in Angola, are consistent with those of other world-class deposits, including the 4-million carat per annum Catoca kimberlite mine in the same country.
“Diamond indicator mineral chemistry analyses published by Sobolev et al (1990) points towards some of the Alto Cuilo Kimberlites having G10 garnet populations similar to those of Catoca,” said Petra in a statement released on Tuesday, “Again further increasing the likelihood for some of the Alto Cuilo Kimberlites to host significant diamond deposits.”
Catoca is reckoned to be the world’s fourth largest diamond mine. Alrosa, the Russia diamond miner, owns a 32.8% stake in the mine.
Five Kimberlites have been ranked in preparation for the large-diameter drilling and bulk sampling campaign starting in the third quarter of calendar 2006.
The company also announced that BHP Billiton, the project’s partner, has already agreed to spend a further $20 million at Alto Cuilo by the end of the next financial year, which will bring its total investment on the project to $45 million.
In September 2004, BHP Billiton announced a deal in which, by investing up to $60 million in the JV vehicle, it would acquire a share of as much as 75% of the vehicle.
In the statement Adonis Pouroulis, Petra’s chairman, says that the company expects to upgrade several more Kimberlites to bulk sampling status as more results are received.
At the end of May, Xceldiam and Petra decided to team up and share exploration information on each other’s project. Xceldiam, which only listed last November, owns the project Luangue and has a 40% interest on the alluvial licence and a 39% interest on the Kimberlite licence, with the country’s government taking the rest.
As part of the agreement, Petra has been granted warrants with a total exercise price of £14 million to acquire up to 26% of the issued share capital of Xceldiam’s wholly owned subsidiary, Frannor Investment and Finance Limited, which holds Xceldiam’s interest in Project Luangue.
Following Tuesday’s announcement, brokerages Collins Stewart and Hargreave Hale, released positive notes on Petra.