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Searchgold recovers three big diamonds from Mandala

2004-04-20 10:15 ET - News Release

Mr. Maurice Giroux reports

SEARCHGOLD RECOVERS A 21.47 CARAT DIAMOND FROM MANDALA

Searchgold Resources has recently recovered three exceptionally large diamonds in the course of the Mandala III North bulk sample of its Mandala River diamond project in Guinea. These three diamonds weigh 21.47 carats, 10.72 carats and 7.26 carats, respectively, and certainly confirm the presence of large diamonds in Mandala's diamondiferous gravels. Historically, Guinea has produced very large diamonds all across the diamond territory and the Aredor alluvial mine, located 40 kilometres north of Mandala and owned by Trivalence Mining Corp., has reported the recovery of many large diamonds over the years, namely a 255.61-carat diamond sold for $10,036,000 (U.S.), and recently, a 70.10-carat diamond sold for $2.76-million (U.S.).

The bulk sampling program of the Mandala and N'keleyani flats is progressing very well and all new equipment sent from Canada, including the screening unit and the John Deere excavator, are on site except for the dual grease tables sorting room that is scheduled to arrive in Conakry by May 5. The company returned all leased machinery and is now fully operating with its own equipment, reducing the cost of the Mandala operation considerably. As previously stated, it is part of Searchgold's objectives to reach financial autonomy of its Guinean subsidiary Ressources Mandala Guinee SARL through the sale of the diamonds recovered in its bulk sampling program on the Mandala permit, and through evaluation of its new adjacent Ouria River permit.

The company is planning a third diamond delivery to Antwerp, Belgium, at the end of April, and according to the interim results, this shipment will be a record one.

The Mandala and N'Keleyani Rivers flats were systematically sampled by Placer Analysis Ltd., and an indicated resource of 615,000 carats of diamonds was measured within the Mandala River exploitation permit area owned at 80.75 per cent by Searchgold Resources through its 95-per-cent-owned Guinean subsidiary, Ressources Mandala Guinee SARL.