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MEI Online: Plant Operation News: Africa: December 12th 2003


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:: DiamondWorks Plant Commissioning Produces Gemstone Quality Diamonds at Koidu

DiamondWorks Ltd. (the "Company") is pleased to report that intermittent processing of materials from various sources for the purpose of commissioning and testing its 50 tonne-per-hour processing plant at the Koidu Kimberlite Project has resulted in the recovery of a total of 282 carats of gem quality, rough diamonds. The Koidu Project is located in Sierra Leone, Africa and is a 50/50 joint venture between the Company and Magma Diamond Resources Limited ("Magma"). The Joint Venture Company holds an 80% interest in the project.

A number of stones have been recovered, with the three largest stones weighing 14.5 carats, 6.5 carats and 6.2 carats respectively. The bulk of the stones, including the three largest stones, are described as being clear white gem stones with the three largest and a number of others being described as octahedral in shape. The material which was processed was selected to test specific sections of the processing circuits and is not considered representative of the ore materials expected from the Koidu pipe.

Construction of the 50 tonne-per-hour processing plant and ancillary facilities is substantially complete and intermittent processing of material to test the plant and equipment has been conducted during the past few days. Waste stripping of overburden, consistent with SRK's interim mine design, has been hampered by seasonal rains but is progressing with potentially diamondiferous material being stockpiled prior to sampling. Thus far approximately 1 million tonnes of material has been moved of which approximately 40,000 tonnes has been stockpiled for processing. Once the plant is fully operational, the initial material from the pit will be treated as a bulk-sample for the purpose of confirming tonnage and grade previously indicated by historical data.




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