Bulk sampling at Bosele

KimCor has acquired an existing prospecting permit at Bosele that was issued in August 2003. The project covers an area of some 1,100 hectares and is located immediately south of the Bellsbank kimberlite field, of which the Company's existing Bellsbank operation is a part. Fissures within the Bellsbank field have enjoyed a long production history with grades ranging from 50 to 85cpht. Fissures on the Bosele Licence represent the extension of the same fissures that have sustained mining at Bellsbank and latterly Dancarl and Messina mines for more than 60 years.

Fissure potential on Bosele licence

Prior to acquisition by KimCor, Dwyka, the former licence holder drilled what are interpreted to be volcanoclastic rocks in three areas, approximately 1 kilometre apart, to south east of the known kimberlite fissure occurrences. Although each area represents a different geological environment, all three appear to be part of the same volcanoclastic body, which by comparison with other, similar bodies is very large. Early indications are that the Bosele volcanoclastics intrude a water-rich environment similar to that postulated for Argyle in Western Australia. When two bulk samples recovered from Bosele were submitted for kimberlitic indicator mineral studies in 2005/06, the first produced 40 diamonds and the second eight (there were no attempts to recover micro-diamonds). While the bulk samples were relatively small, these results are considered significant.

An exploration budget has been established that will be used to test the continuity of the kimberlite fissures as well as the possible depth extension of the larger volcanoclastic body. The mining plan for the Bellsbank dump processing project anticipates completion of the Project within 3 years. The proposal, subject to on-going exploration results will be to redesign the existing Bellsbank plant to process primary ores derived from any diamondiferous ore bodies proven to be viable at Bosele.