BDI finds more diamonds at S. Kalimantan mine

London Stock Exchange-listed mining firm BDI Mining Corp. reported on Tuesday that recent drilling at the Cempaka alluvial diamond mine in South Kalimantan has identified additional diamond bearing gravels in the Danau Seran channel.

According to the company, these newly discovered diamond-bearing gravels are considered to be comparable in terms of higher in-situ grades and economic strip ratios as those encountered in other recently mined upstream areas of the channel.

?The additional resources have the potential to extend the life of mining operations in Danau Seran, which were originally expected to cease in the first half of 2007. Mine planning is now being undertaken on these new resources with the aim of mining Cempaka and Danau Seran concurrently, allowing greater operational flexibility,? the company said.

These drilling results prove very encouraging. The fact that we may be able to extend the mine life of Danau Seran, especially in a previously un-drilled area, serve to highlight that the Cempaka region has the potential to be a long-term producer of diamonds. We will continue to explore the area as defined by our Contract of Work boundaries, in conjunction with the continued expansion of production with the move into the Cempaka Main Channel".

Cempaka main channel production is expected to produce up to 100,000 carats per year.

BDI owns 80 pct of the project with the balance held by PT Aneka Tambang. (alex)