Magna Egoli Mine-‐ Waldman Diamond

 Magna Egoli Mine Waldman Diamond Resources from Cassiopeia Services LTD Investor Relations & Corporate Communication Consultancy 2 Magna Egoli Mine-­‐ Waldman Diamond Resources Magna Egoli Mine is within the GSR’s BAJA License. An independent evaluation report, which was conducted earlier in 2004, expected that at the current price level, at full production the mine would produce well in excess of US$25 million per year. The values of the first shipment of rough diamonds in 2004 ranged from US$225 -­‐ US$280 per carat. Some large stones in the first parcel were approximately 5 carats each. The mine has an expected life of 10 years, with average weight of 0.57 carat and average value of $220 per carat, which is considered very high value for diamond rough. It can produce 400 carats of diamonds per day. Waldman Diamond Company (Israel) moves upstream, securing marketing rights to Sierra Leone diamond mine [1]-­‐ May 30, 2004 RAMAT GAN, ISRAEL -­‐ The Waldman Diamond Group, the international diamond manufacturing and trading firm that is headquartered in Israel, has announced that it has secured the exclusive marketing rights for the output of the Magna Egoli mine, an alluvial mining operation in Sierra Leone that produces gem quality diamonds. Waldman Diamonds was able to secure the exclusive marketing rights after Waldman Diamond Resources (WDR), which is the WDC Group's mining and exploration arm, obtained an ownership stake in the mine's holding company. This month, the WDC Ramat Gan office received the first shipment from this highly mechanized diamond mine, which is located on the Sewa River. The values of this particular shipment of rough diamonds ranged from US$225 to US$280 per carat. Some of the larger stones in the parcel weighed approximately five carats each. Before Waldman acquired its marketing rights, the production of the Magna Egoli mine was sold on the local Sierra Leone market. But Waldman Diamonds recognized that the high quality of the output made this production of particular interest to the Israeli industry, since more than 75 percent of the rough diamonds can be economically cut and polished by the Israeli diamond manufacturers. An independent evaluation report, which was conducted earlier this year, indicated that, at the current price level, when under full production the mine will produce well in excess of US$25 million per year, all of which will be marketed through the Israel diamond centre. Magna Egoli Diamond Mine/Sierra Leone [2]-­‐Nov, 2004 RAMAT GAN, ISRAEL -­‐ The Magna Egoli Mine, Sierra Leone’s largest mechanized mine, is fully owned by Waldman Diamond Resources of Israel. It’s located in the eastern part of the country along the Sewa River, near the Koidu and Tongo diamond regions. “It is unquestionably diamond territory – flying overhead in small aircraft you can see hundreds of diggers panning the rivers,” 3 says Alex Waldman, founder and chairman of the Waldman Group. “They earn subsistence wages and hope for major finds,” noting they are paid guaranteed monthly wages. Magna Egoli started operations in 2001, with development costs expected to reach $8 million by 2005. The mine has an expected life of 10 years, and Waldman expects an estimated annual production of $25 million, with average weight of 0.57 carat and average value of $220 per carat, which is considered very high value for diamond rough. It produces 400 carats of diamonds per day. “While our margins are high, our costs are also very high,” he says. “Huge investments are needed in mechanized mining.” Diamond Industry Review-­‐Sierra Leone 2004 [3] One of the few mechanized alluvial diamond operations, with excavators, pumps and processing plant is Magna Egoli, operating in Zimmi on the Sewa River, between Bo and Kenema. Magna Egoli is controlled by Fauvilla Ltd. which took over the Rex mining leases and equipment in 2002 under an arrangement to sell its diamonds through Rex in Antwerp. Fauvilla has backing from Israeli lawyer and businessman Yigal Shapira. Rex’s Interim Financial Statement posted to the web on November 28, 2003 states: “The first shipment to Rex Antwerp of Sierra Leone rough diamonds have been sold in Antwerp during the month of November. Sierra Leone sales were strong, with high prices obtained, as the diamond market is in short supply. Imports from Sierra Leone are expected to reach a sustained level of $2 million per month within a year.” Source: [1] http://www.wdcgroup.com/wdc-­‐secures-­‐marketing-­‐rights-­‐to-­‐sierra-­‐leone-­‐diamond-­‐mine/ [2] http://www.wdcgroup.com/magna-­‐egoli-­‐diamond-­‐mine-­‐in-­‐sierra-­‐leone/ [3] http://www.pacweb.org/Documents/annual-­‐reviews-­‐diamonds//SierraLeone_AR_2004-­‐Eng.pdf