first new economic pipe find in 30 years...

ASX ANNOUNCEMENT 17 May 2004
ELLENDALE’S FIRST NEW ECONOMIC PIPE
FIND IN 30 YEARS
The Board of Kimberley Diamond Company NL (Kimberley) (ASX : KIM) is delighted
to announce that the results of a recent bulk sample extracted from the Kimberley
28 Pipe indicate that the pipe will be able to be mined economically. Kimberley was
the first to discover the pipe by way of its detailed airborne magnetic survey in 2002.
Subsequent slim line delineation drilling positively identified and outlined the
lamproite body.
The ellipsoidal shaped pipe is located some 150 metres north-west of the E9 west
mining operation and has a sand covered surface area of approximately 0.33
hectares. A single large diameter (2.5m) Bauer drill hole produced encouraging
grades in 2003 – particularly in the uppermost 10 metre section.
A 6,927 tonne bulk sample has just been processed and 267 carats recovered with
an in-situ grade of 5.07 cts/100 tonnes and an average stone size of 0.35
carats/stone. Valuation of these stones will take place later this week but initial
indications are that a ROM value in excess of US$200/carat will easily be achieved.
(The nearby E9 west pit has an average stone size of 0.25 carats/stone and a ROM
value of US$170/carat and the adjacent E9E pit has an average stone size of 0.40
carats/stone and ROM value of US$322/carat.)
Although of limited size, it is planned to start mining the pipe in the near future.
All three of the previously known economic pipes at Ellendale (E9, E4 and E4
Satellite) were first discovered by CRA in the late 1970s and Kimberley 28 thus
represents the first new economic discovery for the past 30 years.
– END S –
On behalf of:
MILES KENNEDY – CHAIRMAN
Kimberley Diamond Company NL
Telephone: (08) 9321 5887