Green Reit Share Discussion Threads

[ianwc] 26/4/2005 07:10

RNS Number:5075L
Gravity Diamonds Limited
26 April 2005


RELEASED ON BEHALF OF:

GRAVITY DIAMONDS LIMITED
(ASX & AIM : GRN)
APRIL 26, 2005

GRAVITY RESUMES DIAMOND EXPLORATION AT ABNER RANGE
IN NORTHERN TERRITORY, AUSTRALIA


* Initial focus on ABN21 diamondiferous kimberlite discovery

* "High-priority" targets identified nearby will also be sampled

* Full follow-up programme as ground conditions permit access

Melbourne-based Gravity Diamonds Limited, which completed a dual-listing on AIM
earlier this month, today announces that a helicopter-supported field programme
commenced late last week on its ABN21 diamondiferous kimberlite discovery in the
Abner Range, near McArthur River in the Northern Territory of Australia. A
detailed ground gravity survey and geological mapping will be carried with the
initial objective of outlining the potential shape and size of the kimberlite
body to enable the company to plan more detailed test drilling and bulk
sampling.

A further 28 targets within a 10km radius of the ABN21 discovery will also be
mapped and sampled. Some of these were previously identified as being of
"particularly high priority" but could not be accessed in the 2004 field season.
Others have been identified as a result of a review and consolidation of data
following the ABN21 discovery.

Analytical results from this sampling programme are expected in June and will be
used to prioritise the company's future exploration and guide follow-up
drilling.

Commenting today, managing director of Gravity, Mr Phil Harman said: "We believe
this early start to the programme on this exciting and promising exploration
project should enable us to evaluate the potential of the area during the 2005
field season."

The Abner Range targets were identified by a FALCON(R) survey, the airborne
gravity system developed by BHP Billiton.

The ABN21 kimberlite discovery resulted from first-pass drilling of an
accessible FALCON(R) target with 147 microdiamonds and two small macros
recovered from two shallow holes drilled in January. Almost all the stones are
whole, colourless and of potential gem quality.

A full program of follow-up testing at Abner Range is planned for late June once
ground conditions are dry enough for the main access track to the site to be
re-established. This will permit mobilisation of drilling and bulk sampling
equipment together with the necessary camping and support infrastructure.

[ianwc] 20/4/2005 08:42

Ekati for Sale After BHP Billiton Diamonds Chief Quits?

By Emma Muller
19 Apr 2005 at 05:18 AM EDT


ANTWERP (Business Day) -- Kowie Strauss, the head of BHP Billiton Diamonds, has resigned from the world's largest resources company.

He was appointed two years ago at a time when BHP Billiton aimed to build diamonds into a core business within the group.

His departure has resurrected questions in the financial community about the possible sale of BHP Billiton's 80% stake in the Ekati diamond project in Canada's Northwest Territories. Ekati is BHP Billiton's only diamond asset.

A Johannesburg analyst said of Ekati: "BHP Billiton's Diamond & Speciality Products division is fairly small in relation to the group. In the past six months the mine went into lower grade after a fantastic year in the previous year. In addition, other businesses such as base metals are doing remarkably well."

He said Ekati was not doing badly, but was quite a small component of the business.

"If they can't grow it they will probably get out of it," he said.

"Strategically the division has failed to deliver, so BHP Billiton might decide to put the mine up for sale at the right price," said one industry source.

The mine has been the subject of takeover speculation before.

In March last year The Tacy diamond consultancy published an article saying: "The market believes that De Beers made an offer (of about $800m) for the mine last November."

Last year Israeli diamantaire Dan Gertler, who markets 88% of Democratic Republic of Congo's diamond production from MIBA, the country's largest diamond mine, launched a surprise bid for Ekati.

BHP Billiton rejected the offer and reiterated it was not seeking to exit from diamonds.

Over the past two years the company has announced a number of exploration joint ventures and initiatives in Canada and Africa.

In Botswana, it uses the FalconTM gravity technology, which can detect kimberlite pipes (the primary host rock for diamonds), from the air. In Angola, BHP Billiton sealed a joint venture with Petra Diamonds to recover diamonds in the country's northeast.

The company also applied for exploration licences in Congo.


BHP Billiton spokeswoman confirmed Strauss's departure, but said the company would not comment on market speculation

[ianwc] 09/4/2005 12:58

Cheers Andy!

[andy] 09/4/2005 11:45

Ian,

There is an excellent ADVFN thread regarding ISAble AIM stocks;



I also have a list of possibles on a thread on the financebb.


Intersting that 58% of Gravity was held by European investors BEFORE the AIM listing!

[ianwc] 09/4/2005 09:24

your welcome, and thanks for the info re: ISA's.


Gravity had a very good first day too!

I spoke to the MD yesterday to query the possibility of J.Picton writing a note on Gravity (as WH Ireland are their nominated broker).

He wasn't sure if it would happen soon, as the diamond guru is heavily booked already.

[andy] 08/4/2005 23:44

Ianwc,

Thanks for starting a good thread, plenty of decent info here for those that are new to Gravity.

Nice to see Gravity have a healty cash balance, and it appears news is expected in the not too distant future.

Holders / potential holders should note that as Gravity is quoted on the Australian Stock Exchange, it is eligible for inclusion in an ISA (IMHO).

The UK tax laws allows AIM stocks to be put in an ISA if they are also listed on "a recognised stock exchange", of which the ASX is one.

[ianwc] 08/4/2005 22:28

Feature Story
Date: April 08, 2005

Rambler Metals & Mining And Gravity Diamonds Kick Off Life On AIM With Panache.

Two more proper mining companies made their debuts on AIM today, now that the spate of vacuums ahead of the change in listing rules has died down. Gravity Capital is an ASX listed company coming to the market by way of an introduction. Phil Harman gave an excellent presentation on the company at our 22nd Minesite Mining Forum on Tuesday and a webcast of his talk can be heard by those who could not be present by visiting our website.

Our Canadian Correspondent wrote an excellent newspiece about Rambler on February 28th in order to introduce it to UK investors as both Harry Dobson, the chairman and Brian Dalton of Altius Minerals are well known over here. Altius Minerals sold the Rambler property, which lies on the Baie Verte Peninsular in Newfoundland and Labrador, to Rambler Metals & Mining and is thus a significant shareholder in the newly listed company which raised a net £7.36 million at 40p per share.

The Rambler (formerly known as Ming) copper mine is a past producer with the Ming deposit reportedly treating 2.1 million tons of material grading 3.5% copper, 1.0% zinc, 2.4 g/t gold and 20.6 g/t silver from 1971 to 1982. Ore was accessed from a shaft that extends to more than 2000 feet and the deposit is reportedly open below the 2600 foot level. But the interesting facet to the story is that in its final year of operation, an exploration drift was completed at the 1807 level in order to test the productive horizon along strike to the northwest. This reportedly revealed spectacular native gold mineralization within fractures along the thinned, unmined margin. Continued drifting resulted in the discovery, 600 feet northwest from the Ming deposit and adjacent to the then neighboring property boundary, a new zone of massive sulphide that returned assays of up to 11.51% copper over 8.5 feet.

This zone, referred to as the 1807, requires drilling down plunge across the former property boundary. The previous owners failed to successfully negotiate a deal over this crucial piece of real estate and operations halted. Back in 2001, Altius succeeded where the old company failed by consolidating the land package and subsequent drilling confirmed that there exists a considerable extension of the historic Ming deposit, comprising a massive sulphide zone underlain by a broader footwall zone of stringer mineralization.. Now it is up to the new Rambler to make a success of the mine and any other projects it acquires along the way.

Gravity Diamonds went for a dual listing on AIM to attract a wider global focus and attention to its diversified diamond exploration activities. Approximately 58 per cent of the company is held by European investors and BHP Billiton has a 9.6 per cent interest. The company has A$9.9 million in cash and is exploring for diamonds in Australia and the Democratic Republic of Congo (DRC), two of the world's principal diamond-producing countries. These interests balance the low sovereign risk but higher geological risk of the mature exploration terrains of Australia against the high sovereign risk but lower geological risk and greater potential for early major discoveries in the DRC.

Key to Gravity's business strategy is its strategic alliance agreements with BHP Billiton where Gravity's managing director Mr Phil Harman was the former chief geophysicist and exploration manager for South America. The Australian programme is based on deployment of the FALCON® airborne gravity technology for exploration whilst the DRC programme gives Gravity access to highly prospective diamond exploration ground previously unexplored by modern techniques to which the FALCON® system can also be applied. Both agreements give BHP Billiton the right to buy back control and management of any discovery at an early stage under terms favourable to Gravity. The payback cash consideration is 4-5 times the exploration costs plus a royalty and/or a retained equity interest.

In Australia, Gravity has exploration agreements in prospective areas which have a considerable history of conventional exploration and in each case, the company may earn a minimum 50 per cent of new discoveries. It has three projects in Australia: the Northern Australia Diamonds Project with Rio Tinto Exploration in the Northern Territory; and two projects in Western Australia at Ellendale with Blina Diamonds and North King George with Striker Resources.

Both these companies will be active in the field from Day One on AIM so there should be no dearth of news from either of them ... and it could be good.

[ianwc] 08/4/2005 12:11

Gravity Diamonds Limited is a company undertaking diamond exploration in Australia and the Democratic Republic of Congo ("DRC"). Key to Gravity's business strategy is alliance agreements with BHP Billiton, the world's largest diversified natural resources company. The Australian program has been based on the successful deployment of the FALCON® airborne technology. The DRC program gives Gravity access to highly prospective exploration ground previously unexplored with modern techniques.

Gravity's diversified portfolio of exploration projects places the company in two of the world's principal diamond producing countries. It balances the low sovereign risk but higher geological risk of the mature exploration terrains of Australia against the higher sovereign risk but lower geological risk (therefore greater potential for early discovery success) in the emerging Kasai province of the DRC.

Phillip Harman, Managing Director of Gravity Diamonds commented, "BHP Billiton is not only our largest shareholder, holding 11.4 million of the 119 million shares on issue, but is also a key alliance partner. In each of these capacities they have stood by us, both in our equity raising endeavours and in our access to world-class exploration projects. The AIM listing will be welcomed by a significant number of our existing European based shareholders and it will provide us with access to a wider shareholder base and a market which understands the resource sector."

On admission to trading on AIM, the company will have a market capitalisation of approximately £30 million. European investors, mostly connected with the diamond industry, hold approximately 58 percent of the company.

W.H. Ireland Limited is acting as broker and RFC Corporate Finance Ltd as nominated adviser to the company.

[ianwc] 08/4/2005 10:44

RNS Number:8081K
Gravity Diamonds Limited
08 April 2005


ASX & AIM (GRN)

APRIL 8, 2005


GRAVITY DIAMONDS' DEBUT DAY ON AIM

SEEKING KIMBERLITES IN AUSTRALIA AND DRC WITH LEADING-EDGE
SKY SEARCH TECHNOLOGY DEVELOPED BY BHP BILLITON

* First Drill Holes In Northern Territory Project Hit Diamondiferous
Kimberlites

* Big Exploration Programme Initiated To Generate Further Kimberlite
Targets

* Results From Congo Sampling Available Later This Month

Gravity Diamonds Limited today listed on AIM by way of an Introduction in a move
that the ASX-listed company anticipates will attract a wider global focus and
attention to its diversified diamond exploration activities. Approximately
58p.c. of the company is held by European investors with an interest in the
diamond industry. BHP Billiton holds a 9.6p.c. interest and management and
family around 4p.c.. The company has A$9.9m cash.

Gravity is exploring for diamonds in Australia and the Democratic Republic of
Congo (DRC), two of the world's principal diamond-producing countries. These
interests balance the low sovereign risk but higher geological risk of the
mature exploration terrains of Australia against the high sovereign risk but
lower geological risk and greater potential for early major discoveries in the
DRC.

Key to Gravity's business strategy is its strategic alliance agreements with BHP
Billiton where Gravity's managing director Mr Phil Harman was the former chief
geophysicist and exploration manager for South America. The Australian programme
is based on deployment of the FALCON(R)* airborne gravity technology for
exploration whilst the DRC programme gives Gravity access to highly prospective
diamond exploration ground previously unexplored by modern techniques to which
the FALCON(R) system can also be applied. Both agreements give BHP Billiton the
right to buy back control and management of any discovery at an early stage
under terms favourable to Gravity. The payback cash consideration is 4-5 times
the exploration costs plus a royalty and/or a retained equity interest.

In Australia, Gravity has exploration agreements in prospective areas which have
a considerable history of conventional exploration and in each case, the company
may earn a minimum 50p.c. of new discoveries. It has three projects in
Australia: the Northern Australia Diamonds Project with Rio Tinto Exploration in
the Northern Territory; and two projects in Western Australia at Ellendale with
Blina Diamonds and North King George with Striker Resources.

The Northern Australian project is the largest, covering some 40,000km2 of
tenements in a number of different areas. In 2003 the FALCON(R) system was flown
over seven prime areas of interest covering about 3,500km2 which were selected
on the basis of the large volume of historic diamond sampling data available.
Follow-up of priority FALCON(R) targets began in the 2004 field season using
loam and drainage sampling and in several areas where surface access was
possible, RC drilling was undertaken.
/2

GRAVITY DIAMONDS 2

In January 2005, Gravity announced that two shallow holes drilled into FALCON(R)
target ABN21 in the Abner Range, near McArthur River had intersected a new
diamond-bearing kimberlite. A total of 147 microdiamonds and two small
macrodiamonds have been recovered from these holes and almost all of the stones
are whole, unresorbed and colourless of potential gem quality. Further work to
determine the size and grade of the discovery will start this month. At least 20
other similar FALCON(R) gravity features in the vicinity of ABN21 will also be
followed-up.

A FALCON(R) survey in late 2003 located a number of new targets on Blina
Diamonds' Ellendale project. That company has since completed first-pass
drilling of the various targets and so far has identified three new small pipes
and a new palaeo-channel. Bulk sampling in 2004 showed that, although the pipes
are diamond-bearing, the average grade of the bulk samples was considered too
low to be economic. Further testing of the palaeo-channels and other targets is
planned, however.

A FALCON(R) survey over a portion of the King George North area in the Kimberley
region of WA in 2003 identified a large number of high priority targets. Surface
samples were collected from 12 of these targets and eight have since reported
positive for Kimberlitic indicator minerals or microdiamonds.

KASAI CRATON INCLUDES SOME OF WORLD'S BEST DIAMOND GROUND

The agreement with BHP Billiton to explore for diamonds in the Kasai region of
the DRC was signed in August 2004. This area covers part of the Kasai Craton and
lies immediately along trend from the rich diamond provinces in Angola and is
considered to include some of the most prospective, effectively untested,
diamond exploration ground in the world.

The proposed exploration programme targets new kimberlite pipes and will employ
broadly-spaced surface sampling for kimberlitic indicators to locate prospective
areas, followed by airborne geophysics to identify specific kimberlite targets.
Dependent upon results, and subject to government approvals, the FALCON(R)
system may be deployed for specific target generation in the future.

During the 2004 field season, Gravity completed a kimberlitic indicator mineral
sampling programme using three helicopter-supported crews over more than
20,000km2 of the tenements of the JV ground in the Kasai Craton. Numerous
artisanal workings were encountered, thus confirming the widespread presence of
alluvial diamonds in the area. Sample results are expected later this month.

An aeromagnetic survey over a 4,900km2 section of the sampled area will be flown
shortly to objective of pinpoint magnetic kimberlite targets that could be
potential sources of the alluvial diamonds.

The company has an exploration budget of US$5-6m for 2005 for an intensive work
programme which is already underway. This includes an aeromag survey in the
Kasai area of the DRC and follow-up of the result, a ground gravity survey in
the Abner Range, with drilling and bulk sampling to follow in mid-year.
Gravity has 119m ordinary shares in issue and at the current share price of
A$0.76 is capitalised at A$91m (#36m). The company has a strong board of
directors, chaired by Bobby Danchin, an experienced diamond explorer and former
director of global exploration for Anglo American. Phil Harman spent 34 years
with BHP and executive director Nic Limb is a proven business innovator and
former managing director of New Hampton Goldfields Ltd.

* FALCON(R) was developed at a cost of US$250m. It is a pioneering exploration
tool that has been refined by BHP Billiton from technology that was originally
created by the US Navy. FALCON(R) enables airborne collection of gravity
measurements previously limited to ground deployment and makes it possible to
survey much larger areas in a significantly shorter time. Gravity measurement
reveals features that have a contrasting density with the surrounding rocks and
has particular application to diamond exploration and the search for kimberlite
pipes. The FALCON(R) system is deployed in a single engined turbine Cessna
aircraft which is also equipped to collect magnetic and other geophysical data.

[ianwc] 08/4/2005 09:59

Gravity Diamonds 31
AIM debut

[ianwc] 08/4/2005 08:42

will sort out the thread over the next few days.