Cream Minerals Updates the Trade on Progress in Sierra Leone

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RAPAPORT… Cream Minerals Ltd., which is prospecting on the Sewa River in Sierra Leone, exported a parcel of diamonds to Canada including 112 stones with a total weight of 53.93 carats. An independent value estimate of $10,701 from the Government Gold and Diamond Office (GGDO) of Sierra Leone was attached (along with a Kimberley Process Certificate.)  This value estimate was a basis upon which the 6 percent royalty on diamonds payable to Sierra Leone is established. The company believes that the process is now recognized as a “well established norm for the country and will assure a timely movement of rough diamonds from further production.”

The independent valuation indicated an average value of $198/ct for the parcel which included one 2.92 carat stone valued at $1,071/ct. This compares favorably with an average value reported for diamonds from the Ekati ($140 per carat)  and Diavik ($104 per carat) mines in Canada, Cream determined.

Close to the downstream boundary of the licence Cream shares with joint venture partner Casierra Development Fund Inc., artisanal miners were recovering sufficient gold to justify their hand mining efforts. A request is being made to the Mines Department to include gold in the permitted minerals of the diamond exploration licence, according to Cream’s progress statement.

An environmental study and application for conversion to a full mining licence are necessary for the next stage of exploration on the Sewa. Meanwhile, Cream is reviewing its options with respect to the Sewa claims and has determined that it will write the property down to a nominal carrying value of $1, and will review its future plans for the licence over the next few months. All dredging and concentrator plant equipment have been re-located to a secure storage facility.

Val Collier has been confirmed as country agent for Cream to assist in forwarding the projects in Sierra Leone. As a respected career civil servant and former commissioner of the Anti-Corruption Commission, he brings a strong element of corporate social responsibility to the operations going forward. Application has been made to enter the Sewa and the Marine Alluvial projects into two separate BVI companies, which will allow the Cream group of companies to operate with more flexibility in Sierra Leone. KPMG Partners in Freetown assisted with the registration of the Cream BVI companies in Sierra Leone, which was completed at the end of April 2008.



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