80 Carat Diamond Found in Tanzania

A local miner in Tanzania recently found an 80 carat diamond on Douglas Lake Minerals Inc.’s newly acquired Magembe Diamond Property. The Canada-based diamond company’s CEO, Harp Sangha, said the discovery is a “good news, bad news story.”

The good news for the company, according to Sangha, is that they have “had reports of a monster diamond along with numerous other large diamonds being discovered on our property.” The bad news is that the local miners are walking away with the diamonds because Douglas Lake Minerals has not yet moved onto the property.

To discourage local miners, the company has set up on site security and it said, it is talking to De Beers to determine if it can provide more security.

The Magembe Diamond Property consists of a number of prospecting licenses covering 46 square km directly adjacent to the eastern, northern and western boundaries of the Williamson Mine, which is 75 percent owned by De Beers and 25 percent by the Tanzanian government.

The plan is to do an airborne survey of the property in early 2007, to update mapping, as well as engage in geochemical work and a bulk sampling program.