African Diamonds corporate presentation 2006

1. Presentation to Westwind Partners
Diamond Conference
An update on the African Diamonds /
De Beers JV in Boteti Exploration
(Botswana)
James AH Campbell
B.Sc. (Hons) ARSM MBA (Dunelm) Dipl Datm (UNISA) MIMMM C.Eng C.Sci Pr.Sci.Nat
General Manager – Group Exploration
12th May 2006

2. 2
Agenda
 AK6 Location
 Update on the AK06 resource delivery project
 Update on the mine delivery programme
 Immediate next steps

3. 3
Locality Map
JV Ground
DAMTSHAA

4. Update on the AK06 Resource
Delivery Project

5. 5
Deposit level assessment
 Boteti JV (DB 51%, AD 49%)
 De Beers is the Operator and can earn up to 70%
by delivering the first bankable feasibility study
 Surface area: 9.5Ha
 Volume: 59M tons
 Grade: 25cpht
 Value: $138/ct (+1mm)

6. 6
Programme Schedule & Budget
AK6 Resource
Delivery Project,
Conceptual & Pre-feas.
2006 YTD Actual (USD) 2006 Forecast (USD) 2006 Budget (USD)
2006 Programme 2, 305, 129 19, 350, 000 19, 350, 000
Budget
Phased Approach
 Phase 1 (planned to deliver a high confidence inferred resource): 500 carats - 70m grid centre
Large Diameter Drilling & core drilling.
 Phase 2 (planned to give an indicated resource): 500 carats - 50m grid centre Large Diameter
Drilling, 4,000 carats – Bulk sampling & core drilling. An indicated resource is a requirement of a
bankable feasibility study, as required by the Boteti JV agreement
 Phase 3: 1,000 carats - 25m grid centre LDD (may not be required, depending on Phase 1
and 2 results)

7. 7
Summary of Phase 1 results
 Macro-diamond results issued for 12 LDD holes (82 tonnes of
DMS concentrate), 13th and last hole results to be issued
during May 2006.
 A total of 9,970 diamonds weighing 661 carats to date
recovered from 2,438 ton of in situ sample from 12 LDD holes
 Diamond Characteristics
● Largest diamond recovered c. 8-carats in size
● Presence of Type II diamonds
● Low % diamond breakage
● Diamonds adhering to kimberlite during recovery, especially in the
harder south lobe kimberlite

8. 8
Progress on Phase 2
Pilot Core Drilling
 10 (3,472m) holes to precede Phase 2 LDD completed as planned.
 All core logged and sampled for petrography, Ore Dressing Studies
& density.
 Some holes in south lobe indicate additional kimberlite than model
suggests. To extend PLT016 deeper
Delineation Drilling
 Vertical hole drilled north of north lobe indicates additional
kimberlite volume. Further delineation required.
 Deep hole to delineate root zones of north/centre lobes & bottom of
south lobe in progress. Potential for additional kimberlite.
 Dedicated delineation programme (>7,000m) to arrive at an indicated
level of confidence in geological model will commence in Q2 2006.
Completion in Q3 2006.
 Preliminary geotechnical drilling (4-5 holes) planned as output to pre-
feasibility study.
Phase 2 Large Diameter Drilling
 Re-scheduled ahead of planned bulk sampling.
 In-fill drilling:10 x 23-inch LDD holes to determine grade at 50m hole
spacing grid.
 3 holes completed in centre lobe. South lobe drilling in progress.
 2 of 7 holes planned in south lobe to go 600-700m depth to confirm
grade continuity with depth.
 Planned to complete drilling end August and processing end
September 2006.
The current 3D geological model
suggests a total resource to 59Mt.
There is potential for additional
kimberlite volume

9. 9
Phase 2 Bulk Sampling Strategy
 Bulk sampling options to recover c.4,000 carats (2,000 carats centre & south lobes
each) for revenue estimation
● Shaft & horizontal adits to targeted areas
● Surface trenching
● Drill 1.5m diameter holes using Bauer BG36 rig
● Easy-Pipe directional tunneling system
 Decision about which method(s) will be based on the outcome of Phase 1 diamond
revenue results post the layout in early July. In the meantime scopes of work and
contract tender preparations in progress for selected technology
 The current diamond size frequency distributions tend to support a difference between
South and Centre lobes, therefore assortments may be different. North lobe not
material.
 Investigations aimed at increasing the plant top cut-off size to c. 20mm in progress. Aim
is also to recover the large diamonds including the fragile Type II’s.
 DMS plant upgrades to handle the bulk sample throughputs (and ensure large & Type II
diamond recoveries where present) to commence after Phase 2 LDD sample
processing in early September 2006.

10. Update on Mine Delivery Programme

11. 11
Plant Designs and Mine Planning
Plant Design Studies
 Various block flow diagrams currently being considered:
● Conventional block flow diagram - baseline design
● ‘Voorspoed’ type design with High Pressure Rolls Crusher in a
secondary application
● ‘Canadian’ type block flow diagram (Tahera, etc)
● Application of autogenous Milling
 Capital and operating costing in progress
 Option for ore processing at Letlhakane being considered
Mine Planning
 Letlhakane Mine slope angles assumed for conceptual study
 Geotechnical & hydro-geological modelling planned
 Conventional shovel truck method. Diesel powered fleet
 Continuous operations environment
 Host rock mined from the upper benches of the pit will be used
during construction.
 Maintenance of a minimum of six months exposed kimberlite at
Run of Mine (ROM) grade
 Purchase and operate all the earthmoving equipment
 All equipment will be maintained on a Repair & Maintenance
(R&M) agreement
 Multi-skilled operators to provide flexibility and contingency
Cut 1
12.9Mt ore
3.3M carats
14.7Mt waste
190m depth
Commence 2009
Cut 2
15.7Mt ore
3.0M carats
24.9Mt waste
238m depth
Commence 2012
Cut 3
10.6Mt ore
1.9M carats
56.4Mt waste
341m depth
Commence 2014
Cut 1
12.9Mt ore
3.3M carats
14.7Mt waste
190m depth
Commence 2009
Cut 2
15.7Mt ore
3.0M carats
24.9Mt waste
238m depth
Commence 2012
Cut 3
10.6Mt ore
1.9M carats
56.4Mt waste
341m depth
Commence 2014

12. Immediate next steps

13. 13
Immediate target next steps
 Diamond Layout : early July 2006
 Global (inferred) resource : end July 2006
 Conceptual Study completion : Q3 2006
The Conceptual Study is being worked-on from the perspective of a stand-
alone mine
Gate to pre-feasibility
 Local (indicated) resource : Q2 2007
 Pre-Feasibility Study phase : 9 months (Q2 2007)
The pre-feasibility study will essentially be a suite of trade-off studies within a
settled corporate arrangement
Gate to feasibility
 Feasibility Study phase : 9 months (Q1 2008)
 Detailed Design Phase : 6 months (Q3 2008)
Gate to implementation
The above timeline for mine development (aside from the resource
phase) is merely a standard template
There is significant opportunity to improve timelines when the Organisation
to Organisation (O to O) partner is selected and also undertaking
activities in parallel (as opposed to in series) where possible

14. Questions?