Everfor Diamonds plc - Exploration Progress

• Kimberlite indicator minerals recovered
• Two airborne geophysical surveys completed
• Preliminary interpretation of raw data reveals magnetic anomalies with pipe-like features


The Directors of Everfor Diamonds PLC are pleased to announce that preliminary results have been received from both the sampling and geophysical surveying programmes in the Russian Federation. Two airborne surveys in the Kola Peninsula, one solely magnetic in nature and the other utilising both electromagnetic and magnetic techniques, were completed by early November.

SAMPLING

From a total of 145 sample results returned thus far, twenty-two (15%) contain kimberlite indicator minerals. The remaining 2000 samples currently in the South African laboratory of MSA Geoservices, have been concentrated and are being examined for indicator minerals.

All of the conventional suite of grains - pyrope garnet, ilmenite, chrome diopside and spinel - have been recovered in varying numbers. Eight samples contain multiple numbers of grains of which three contain grains of different species. Surface texture studies to determine transport distances are underway, to be followed with microprobe analysis of each grain’s mineral chemistry.

Further results will be reported as they become available.

GEOPHYSICAL SURVEYING

The most northerly of Everfor’s licences, Tulomo-Teriberskaya, was subject to a 2000km2 aerial magnetic survey, carried out at a line spacing of 100m. Corrected and levelled data for this survey have now been received from the contractor, Aerogeophysica Limited; these have been sent to Everfor’s geophysicist, Ron Palmer, for interpretation.

In the Ermakovskaya licence in the south of the peninsula, a high-definition electromagnetic and magnetic survey was completed by the contractor, Fugro Airborne Surveys Limited, in early November. Preliminary, unlevelled data has been received by Everfor and levelled data is expected by 14th December.

An initial interpretation of the magnetic data, carried out by Ron Palmer, indicates several dipolar anomalies in the north-west of the licence area. Dipolar anomalies can be caused by pipe or cylinder-like bodies. There is additional support for these anomalies from the raw electromagnetic data, but this aspect requires more detailed work on the levelled dataset. This area is covered by Riphean age (1.65 billion years to 650 million years old) sandstones through which the two known kimberlites (age approximately 440 million years) intrude.

One of the dipolar anomalies coincides with a lake; several kimberlites in a similar geographical and geological terrain within the Slave Craton in NW Canada have been discovered under lakes.

The quality of the lake anomaly necessitated the prioritisation of sample treatment for some thirty-four samples within approximately three kilometres’ radius. Nine of the samples contain single or multiple indicator minerals. Work will be undertaken to confirm the estimated glacial transport distance of between two and five kilometres. Interpretation of the levelled data and surface texture studies on the recovered grains will be used to locate a probable drill target for the 2005 field season.

It is anticipated that further magnetic and electromagnetic anomalies will be interpreted from the two surveys by early 2005.

Everfor’s Chief Operating Officer, Don Duncan, is pleased that the techniques chosen to explore this area appear to be working satisfactorily; refined geophysical data and further analysis of the recovered indicator minerals will greatly assist in producing targets for further work in 2005.

FOR FURTHER INFORMATION:
Dr Sergey V Kurzin
Executive Chariman

Don Duncan
Chief Operating Officer

Everfor Diamonds plc
18 Upper Brook Street, London, W1K 7PU
Phone +44 (20) 7514 0590
Fax +44 (20) 7514 0591
Email: info@everfor.com

Jonathan Willis-Richards
Loeb Aron & Company Ltd.
Phone +44 (20) 7628 1128

The Directors of the issuer accept responsibility for this announcement. Loeb Aron & Company Ltd., ("Loeb Aron & Co.") which is authorised and regulated by the Financial Services Authority, has approved this announcement for release on Newstrack. Loeb Aron & Co is acting as corporate adviser to Everfor Diamonds Plc and to no-one else and will not be responsible to anyone other than Everfor Diamonds Plc for providing the protections afforded to customers of Loeb Aron & Co or for providing advice in relation to any investment made pursuant to this announcement.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.