Strategy

West African Diamonds plc acquired the West African Business from African Diamonds in October 2006 pursuant to the terms of the Demerger Agreement as a means of unlocking value from the West African Business for the benefit of shareholders.

The Board has extensive operational and diamond exploration experience in West Africa having been involved with African Diamonds since 2000. In both Sierra Leone and Guinea, where the Company currently operates, the relevant Directors have extensive local experience and knowledge.

The Company intends that the cash resources on listing be used towards:

  • providing focused management and financial resources to its existing operations in Sierra Leone and Guinea;
  • repaying a loan to the Company from African Diamonds, amounting to approximately £400,000;
  • developing a large gold and diamonds tailings resource in Sierra Leone which has a mining licence;
  • developing high grade diamond dykes adjacent to an existing mine in Sierra Leone;
  • developing alluvial diamond mining opportunities on the Company's properties on the Bomboko River plains in Guinea;
  • investigating exploration targets on its Licences; and
  • identifying and acquiring diamond and other mineral projects in West Africa and elsewhere.

WAD Strategy

  • WAD holds three late stage diamond development opportunities which will be brought on-stream in 2007.

The production strategy is as follows:

In Sierra Leone

  • develop a 7mt gold diamond tailings resource with a mining licence
  • develop high grade diamond dykes adjacent to the Energem diamond mine and the
    Petra/Mano dyke development.

In Guinea

  • Expand an alluvial mining operation on the Bomboko river which already holds a semi industrial mining licence.
  • The Exploration strategy is as follows:
    • follow up mapping on an extensive kimberlite network in Sierra Leone
    • assess the grades on new alluvial licences being acquired adjacent to Bomboko
    • expand the hard rock kimberlite licences in Guinea.
  • Opportunities to expand the portfolio outside of Guinea and Sierra Leone are being examined.



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