RNS Number:0033Q
Reefton Mining N.L.
22 September 2003



                              REEFTON MINING N.L.

SKELETON COAST DIAMOND PROJECT - STAGE 2 BULK SAMPLING PROGRESS REPORT

DMS (dense media separation) processing and sorting of samples is complete for
the T2 trench site located on the extensive 10 metre elevated fossil beach. The
60 metre width of fossil beach gravel tested was diamondiferous throughout,
returning an in-situ grade of up to 15.22 carats per hundred tonnes. This sample
contained a total of 9.51 carats of diamonds recovered from 62.5 tonnes
(specific gravity is 1.8). The 60 metres was sampled in three cell divisions of
10 metres width.

To date a total of 178 diamonds have been recovered from the T2 trench site
totalling 41.22 carats. The diamonds are of good size and very high gem quality,
averaging 0.23 carats per stone. The largest diamond was 1.24 carats. Several
fancy yellow diamonds have been recovered with the largest being 0.78 carats.

A larger diamond, 1.64 carats, was recovered from another sample site(SD7). This
sample is still being processed.

DMS processing of samples from T3 trench site has commenced. T3 is also located
on the 10 metre elevated fossil beach.

Additional beaches yet to be tested are:

   *the modern beach at the existing shoreline

   *the recent beach at 3 metres elevation

   *a series of beaches between the 3 metre and the 10 metre beach

   *the oldest exposed fossil beaches at 15 to 30 metres elevation (1.5 to
    2.5 kilometres from the coast)

   *50 to 90 metre elevated beaches covered by shallow sand along the
    interpreted continental cliff line located approximately 3 kilometres inland
    from the modern shoreline within the company's concessions

The samples are recovered from trenches with a 20 tonne excavator, dry screened
to remove sand of less than 2mm and gravel greater than 14mm. Wet processing of
the concentrate advances through a trommel for minor scrubbing to a 10 tonne per
hour Dense Media Separation plant utilising ferro-silicon as the media. The wet
concentrate is separated by a jig into sized fractions for hand sorting under
the company's security system.

Field examination covering 40 kilometres of the coast from 20 kilometres north
of the current bulk sampling activities has located sites previously prospected
from the 1950's to 1970, from Rocky Point through to Sarusas. The Namibian
Ministry of Mines and Energy records state that 20 carats were recovered from
the Rocky Point area and 16.4 carats were recovered from the remote location at
Sarusas, some 60 kilometres to the north of the current sampling site. Extensive
fossil gravel beaches occur both along strike from these localities and further
inland at greater elevations. Sampling sites have been selected during mapping.




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