BDI Mining reports discovery of larger diamonds

Canadian mining firm listed in LSE BDI Mining Corp said Thursday diamonds recovered from the Cempaka mine South Kalimantan were larger on average than those found at Danau Saran, the smaller northern contributory of the Cempaka main channel.

The company said 702.46 carats of gem quality diamonds were found and that 19 pct of the stones recovered during its initial phase II mining weighed over 1 carat, including stones of 7.75 carats, 4.71 carats, 4.22 carats and 3.92 carats.

The stones also appear to be of a better colour and higher quality, BDI said.

"These first results from Phase II serve to confirm our belief in Cempaka, and we are very encouraged by the larger average stone size and better stone quality (than those found at Danau Saran)," said BDI's managing director and chief executive Lee Spencer.

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

Mining of the Danau Seran palaeochannel will resume once the recently upgraded processing plant runs at its new expanded rate and is expected to continue into 2007, with mining of the Cempaka channel to restart on a staged basis, the company said.(alex)