SouthernEra Angolan Project Gets Government Approval

SouthernEra Diamonds has received final approval from the Angolan government for the formation of the operating company “Sociedade Mineira do Camafuca Lda” (SMC), which will be issued with the mining license for the Camafuca Project, allowing construction of the project to start.

The state-owned diamond mining company, Endiama, will be a partner in the company, as Angolan laws require.

“We look forward to commencing the Camafuca Project with our partners in the very near future,” said SouthernEra Chairman Dr Chris Jennings. The company holds an 18 percent free-carried interest in the project.

SouthernEra says Camafuca is one of the largest known undeveloped diamond-bearing kimberlite complexes worldwide, located in the Lunda Norte province in north-eastern Angola 20 kilometers southeast of the town of Lucapa.

The project area covers the outcropping primary kimberlite deposits associated with the five Camafuca-Camazambo kimberlite pipes with a combined surface area of 160 hectares.

Following a feasibility study completed in 2000 SouthernEra defined an inferred mineral resource from surface to a depth of 145 meters of 209.5 million cubic meters at an average grade of 0.111 carats per cubic meter, for a total resource of 23.25 million carats.

An independent valuation at the time estimated the average value of the Camafuca diamonds at $109 per carat. Since then, global rough diamond prices have increased greatly.