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Re: News Release - Thursday, June 19, 2008
First 1,000 Carats Produced from Underground Trial Mining at Kono
Project in Sierra Leone
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Mano River Resources Inc. ("Mano" or "the Company") the TSX-V and
AIM-listed exploration and development company focussed on West Africa,
is pleased to announce a progress update on the Kono kimberlite
Diamondproject in Sierra Leone. The Kono project is a Joint Venture between
Stellar Diamonds Ltd ("Stellar") (49%) and Petra Diamonds Limited
("Petra") (51%). Mano River is a 63.2% shareholder in Stellar.
Kono Project Highlights:
.. 1,049 carats (12,132 diamonds) recovered from trial mining to end
May 2008
.. First commercial
Diamond tender, and project revenues, scheduled for
August 2008
.. Pol-K shaft in-situ kimberlite grade increased to 66 carats per
hundred tonnes ("cpht") and Bardu shaft in-situ grade established at
75cpht
.. Stope trial mining from Pol-K shaft due to commence in August
.. 3,167 line km E-M geophysical survey completed, processing and
target selection ongoing
Karl Smithson, CEO of Stellar Diamonds commented:
"The production of the first 1,000 carats from underground trial mining
is a significant milestone in our Joint Venture with Petra Diamonds.
We continue to be encouraged by the kimberlite grades and observed
quality of diamonds being produced. We are moving to a position at the
Pol-K shaft where we expect to significantly increase the monthly
tonnage and
Diamond production. Through the planned tenders of diamonds
in August and October, and regular
Diamond sales in the coming months,
we expect to be able to offset project expenditure from revenues.
We take this opportunity to congratulate Petra Diamonds, our partners
and operators of the Kono project, for their continued diligent
management and excellent progress made to date."
Overview
The exploration and trial mining operations at Kono project are
progressing well and continue to deliver encouraging results. Two
shafts are being developed, Pol-K and Bardu, and processing of
exploration and development material to date has yielded 12,132
diamonds weighing a total of 1,049 carats.
The first commercial tender of diamonds from the Kono project is
planned for August in Johannesburg, through existing Petra marketing
channels. This is likely to comprise approximately 800 carats of
diamonds from the Pol-K shaft and will give an indication of the likely
minimum value to be realised from this kimberlite shaft. A second,
larger tender, comprising diamonds produced from the first Pol-K stope,
is being scheduled for October.
As
Diamond production from the trial mining stopes increases over the
coming months, revenues from
Diamond sales are expected to generate
regular cash flow to offset against development expenditure.
Pol-K Shaft
Development at the Pol-K shaft is continuing at the 64.5m level, with
preparations underway for the commencement of test stope mining.
Stoping is expected to commence by August and will result in increased
ore extraction on which to assess, with more confidence, the
Diamondgrade and value, as well as likely mining operating costs. The current
grade at Pol-K is 66cpht and some 668.35 carats have been produced from
this kimberlite.
Bardu Shaft
At the Bardu shaft, which is currently at a depth of 50m, a break out
from the shaft has begun and exploration development along fissure
strike has commenced. Some 244 carats of
Diamond have been produced at
an average grade of 75cpht. Shaft sinking will continue to the 64.5m
level (as at Pol-K) at which point, subject to ground conditions,
stoping operations will commence.
E-M Geophysical Survey
Due to the considerable exploration potential at Kono, a 3,167 line km
airborne electromagnetic geophysical survey has been completed by Fugro
Airborne Surveys, the objective being the discovery of kimberlite pipes
and blows. Processing of the data from the survey is expected to be
complete by August, when target identification and follow-up of
selected anomalies will commence.
Other News:
Tongo Project
Mini-bulk sampling of four kimberlite dykes has commenced at the 100%
owned Tongo project in Sierra Leone. Previous
Diamond testing by
Stellar and independent analysis of these results estimated
Diamondgrades of between 100cpht and 500cpht for these kimberlites.
Extensions of some of these same kimberlites in an adjacent licence
were recently bulk sampled by Koidu Holdings, who reported grades of
between 196cpht and 288cpht from a 1,000 tonne sample. The historical
Diamond value for the Tongo dykes is estimated to be over US$175 per
carat, which further supports Stellar's belief that these high grade
dykes could have economic potential.
The objective of Stellar's current mini-bulk sampling programme is to
collect and process approximately 400 tonnes of kimberlite in order to
determine with more confidence the
Diamond grade and value from the
kimberlites within Stellar's licence area.
North DRC Project
The first phase sampling programme has been completed in the 1,308km2
Remec joint venture area. Some 117 samples have been collected and
shipped to Stellar's
Diamond laboratory in Monrovia, Liberia. Initial
results show an abundance of kimberlitic indicator minerals in some
samples, which is suggestive of the presence of as yet undiscovered
kimberlites in the licence area. An appropriate follow up programme
will be implemented once all results are available and interpreted.
Stellar has the right to earn a 75% interest in the joint venture
through funding to the bankable feasibility stage.
IPO Update
The Board of Stellar has decided to push back the planned IPO to Q4-08
on the basis of prevailing market conditions. Additionally, the Board
also felt that Stellar would be in a stronger position to complete its
IPO once the first
Diamond tenders have been completed. By this time
Stellar expects to have realised its first revenues, adding value to
the Company ahead of the planned listing. The Chairman of Stellar,
Lord Daresbury, has written to all Stellar shareholders in respect of
the above, as well as a proposed interim private placement of up to �2
million to be offered in July 2008.
For further information on Mano River Resources and Stellar Diamonds
Limited, you are invited to visit the Company's website at
www.manoriver.com or contact:
Mano River Resources Inc
Luis da Silva, CEO
+44 (0) 20 7299 4212
Stellar Diamonds Limited
Karl Smithson, CEO
+44 (0) 77 837 07971
Pelham PR
Charles Vivian / James MacFarlane
+44 (0) 20 7743 6670
GMP Securities Europe LLP
James Hannon
+44 (0) 20 7647 2803
Panmure Gordon (UK) Limited
Edward Farmer
+44 (0) 20 7614 8384
Mano's Qualified Person responsible for reviewing the content of this
release is Karl Smithson, who holds a BSc in Geology from Kingston
University in the UK, and an MBA from the Graduate School of Business
in Cape Town, South Africa. He is also a member of The South African
Council for Natural Scientific Professions and has 20 years of
Diamondindustry experience.
Forward-Looking Statements
This press release includes certain Forward-Looking Statements. All
statements, other than statements of historical fact, included herein,
including without limitation, statements regarding potential
Diamondmineralisation and reserves, exploration results, marketing plans and
future plans and objectives of Mano, are forward-looking statements
that involve various known and unknown risks and uncertainties as well
as other factors. There can be no assurance that such statements will
prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. The Company has
no obligation to update or modify such forward-looking statements,
either as a result of new information, future events or for any other
reason, and we expressly deny any such obligation in relation thereto.
Important factors that could cause actual results to differ materially
from Mano's expectations are disclosed under the heading "Risk Factors"
and elsewhere in Mano's reports and other documents filed from
time-to-time with the TSX Venture Exchange and other regulatory
authorities in Canada and available under the Company's name on
www.sedar.com.
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release
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Copyright (c) 2008 MANO RIVER RESOURCES INC. (MANA) All rights
reserved. For more information visit our website at
http://www.manoriver.com/ or send mailto:releases@manoriver.com
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