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MTP Motapa Diamonds Com Npv

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Share Name Share Symbol Market Type
Motapa Diamonds Com Npv TSXV:MTP TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
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Motapa Diamonds Inc.: Mothae Diamond Project, Lesotho-Phase 1 Bulk Sample Results

21/07/2008 2:35pm

Marketwired Canada


Motapa Diamonds Inc. (TSX VENTURE:MTP) and partner Lucara Diamond Corp. (TSX
VENTURE:LUC) are pleased to confirm that Phase 1 of the bulk sample program has
been completed yielding 1,296 diamonds weighing a total of 585.15 carats from
25,552 dry tonnes of kimberlite for an average grade of 2.29 carats per hundred
tonnes (cpht). As previously reported, an audit of diamond recovery tailings is
underway using the existing continuous grease belt and an x-ray recovery system.
Due to identified inefficiencies in the diamond recovery circuit during the
processing of this initial sample, the overall grade will increase as a result
of this audit.


The objective of this initial phase of sampling was to determine if diamonds in
the Mothae kimberlite were of sufficiently coarse size to justify continued
sampling to recover a diamond parcel for valuation purposes. This objective has
been achieved and results are positive. Diamonds recovered have a very coarse
size distribution, reflected in a large average stone size and, importantly, in
a high relative frequency of larger stones. Stone frequencies in the 5 to 10
carat size range are considerably higher than those of typical diamond
production from other economic kimberlites, and are very similar to those in
production parcels from the nearby Letseng diamond mine.


The diamond parcel recovered in Phase 1 is too small to provide meaningful
valuation data; however, the parcel has been reviewed by Galaxy Diamond
Expertise SA to qualitatively assess Mothae diamonds and to compare them with
production from the Letseng diamond mine. Galaxy noted strong similarity between
the Mothae diamonds and those from the Letseng main pipe, particularly within
the +5 to +11 DTC sieve categories in which the majority of the Mothae stones
were recovered; Galaxy further noted that "the Mothae sample looks a lot like
the Letseng production and if mixed together it will not be possible, not even
for a trained and experienced eye, to see the difference between the Mothae and
the Letseng diamonds. This may give us some hope for much upside with a larger
sample due to the likely presence of high value large stones which have been
present in the neighbouring mine."


Motapa's CEO, Dr. Larry Ott noted "we are excited with the outcome of this first
phase of sampling. The coarse diamond size distribution and positive value
characteristics indicate that Mothae has significant economic potential. We need
to test this potential by completing the bulk sample and recovering a 2,500 to
3,000 carat parcel for valuation work. At this early stage of sampling however,
we view the results to be very encouraging."


William Lamb, General Manager for Lucara noted "the results look very
encouraging with the original objectives of determining the grade and potential
diamond size distribution being achieved. The Mothae kimberlite definitely shows
economic potential which will be of significant value to both mining companies
as well as to the people of Lesotho. It is with these benefits in mind that we
will continue to work on proving an economic resource at Mothae."


Lucara has fulfilled its obligation to earn a 51% interest in the Mothae project
and has notified Motapa that it will exercise its option to earn an additional
14% interest by contributing US$4.2 million to Phase 2 of the sampling program.
Phase 2 will consist of processing up to an additional 70,000 tonnes of
kimberlite to recover a diamond parcel of 2,500 to 3,000 carats for valuation
purposes. In addition, wide space drilling will be carried out to establish the
generalized geometry of the Mothae pipe, and, to the extent possible, delineate
boundaries of various kimberlite phases within the pipe. The objective of this
work is to establish an inferred resource for the Mothae pipe to a depth of
approximately 200 meters. Phase 2 planning is underway to incorporate
information and experience gained during Phase 1.


The sampling program is being carried out under the supervision of Dr. Tom
Nowicki of Mineral Services Canada, a Qualified Person in terms of NI43-101.


On behalf of the Board

MOTAPA DIAMONDS INC.

Dr. Larry Ott, Chief Executive Officer

This news release may contain assumptions, estimates, and other forward-looking
statements regarding future events. Such forward-looking statements involve
inherent risks and uncertainties and are subject to factors, many of which are
beyond the Company's control that may cause actual results or performance to
differ materially from those currently anticipated in such statements.


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1 Year Motapa Diamonds Com Npv Chart

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1 Month Motapa Diamonds Com Npv Chart