Summary of Significant Results
• 5,186 of a total 6,645 samples collected have been examined
• Drilling re-commenced in the Ermakovskaya licence during March 2007 with 72 holes drilled, totalling 771 metres
• Four anomalies were drilled in the Pulongskaya licence, totalling 141 metres, in March 2007
• Interpretations and reviews of 5,200km2 of airborne geophysical surveying data are underway to produce targets for follow-up drilling
Exploration for diamonds in 2006 comprised sampling and drilling in three of the company’s licences and airborne geophysical surveying in one. The drilling programme was suspended in October 2006 due to the onset of winter and recommenced in March 2007 although the spring thaw has now halted this work. No kimberlites have yet been located. Initial interpretations are now available for the airborne magnetic survey flown in the Tulomo-Teriberskaya licence late in 2006.
| Licence | Samples | Drilled targets/metres | Geophysical survey (km2) |
| Pulongskaya | 0 | 14/389 | 0 |
| Varzugskaya | 635 | 0 | 0 |
| Ermakovskaya | 132 | 86/1303 | 0 |
| Tulomo-Teriberskaya | 311 | 3/68 | 1,740 |
| Totals | 1,078 | 103/1860 | 1,740 |
Sample Results
Five thousand one hundred and eighty six of the total 6,645 samples collected between 2004 and 2006 have been examined to date. Of that number, 464 samples (9.1%) contain one or more of the 1,555 visually identified KIM grains.
A number of these grains have undergone only minimal abrasion since their release from their host rock, indicating a nearby source or that the grains were transported in subsequently weathered boulders. The mineral chemistry trends displayed indicate large numbers of KIMs of low interest with a number of discrete areas of superior interest, principally within the Pulongskaya and Tulomo-Teriberskaya licences.
Drilling Results
Drill holes were sited where there was a congruence of good KIM results and geophysical anomalies, either magnetic or electromagnetic. Drilling was carried out in all of the licences except for Varzugskaya where there is little available geophysical data.
Drilling progress in 2006 was boosted by the provision of two lightweight, portable units, together with appropriate support vehicles by the Company’s drilling contractor. This allowed drilling to begin at the end of May and continue throughout the summer months.
Approximately 1,800 metres has been drilled, both on recently generated targets and on selected targets from previous work which had not been investigated. No kimberlites have been intersected to date, although the sources of the majority of the geophysical anomalies were explained satisfactorily by the rocks encountered.
Results of Geophysical Surveying
High resolution magnetic and electromagnetic surveys totalling 3,450km2 were flown in 2004 in the Pulongskaya, Ermakovskaya and Tulomo-Teriberskaya licences. In 2006, 1,750km2 of airborne magnetic surveying was carried out in the Tulomo-Teriberskaya licence and initial interpretations of the data have been received.
Data interrogation generated numerous geophysical anomalies which resemble those exhibited by kimberlites. The anomalies were then ranked for follow-up work on a number of criteria, including the levels of interest exhibited by nearby KIM grains.
As results of the drilling programmes became available, this data was fed back to refine the process of selecting (in particular) magnetic anomalies. This process is almost complete and a revised selection of anomalies will be generated for follow-up work, in conjunction with new and future sample results.
Director Changes
Mr John Barry Hawthorne, non-executive director of Everfor has announced his intention to resign from the Company effective from 21 May 2007 to pursue other interests. Barry Hawthorne has been a non-executive director of Everfor Diamonds since July 2005 and provided key technical governance of the Company’s exploration of the Kola Peninsula licences.
Prior to joining Everfor, Barry Hawthorne held the position of Deputy Technical Director, with Anglo American Corporation of South Africa / De Beers, until his retirement in 1997. During the 1970’s he championed an in-house scientific centre of excellence within De Beers, with the mandate to increase the understanding of kimberlite genesis, emplacement and classification.
Donald Duncan, Managing Director of Everfor Diamonds commented:
“In addition to Barry’s vast industry knowledge and contacts, his highly-respected insights into diamond exploration research brought considerable benefit to the Company, for which we are extremely grateful. We wish Barry well in his new endeavours.”
“Regarding the Company’s 2007 operations, despite the acquisition of new drilling equipment, drilling progress has been slower than expected and it is disappointing that no new kimberlites have yet been intersected. Sample results continue to be received, many of which continue to reinforce the probability of undiscovered kimberlites within the licence areas. The Company is regularly reviewing all data to better understand the relationships between KIMs, geophysical anomalies and ice transport directions.”
ENDS
-----------------------------------------------------------------------------------------------------------
Notes to Editors:
Everfor Diamonds plc was formed in January 2004 with the specific intention of exploring in the Russian Federation. This was based upon a positive technical assessment by the then geological consultant (now Managing Director), which highlighted the untapped potential of the Kola Peninsula. The extensive network of contacts available to the Executive Chairman allowed swift applications for ground to be made and four licence areas for diamond prospecting were granted. The Pulongskaya and Ermakovskaya licences contain core areas where close-interval sampling and some geophysical surveying has taken place by previous explorers. Two known kimberlites are located in the Ermakovskaya licence.
------------------------------------------------------------------------------------------------------------
For further information please contact:
Donald Duncan, Managing Director, Everfor Diamonds plc
Tel: +44 (0)20 7514 0590
Gavin Dallas, Marketing and PR, Everfor Diamonds Plc
Tel: +44 (0)20 7514 0590
www.everfor.com
------------------------------------------------------------------------------------------------------------