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SIBERIAN DIAMONDS
Siberian Diamonds:
pioneers in Russia’s north
FOR decades, Alrosa, the Russian government’s
diamond exploration arm, has had an exclusive hold
on the rich diamond fields in Siberia, but that is about
to change.
Now, Guernsey-based Siberian Diamonds Ltd (SDL)
is the first private diamond exploration company to
hold exploration licenses in Siberia – a move that could
prove profitable for the upstart.
According to Paul Sobie, Siberian’s managing director:
“The vast tracts of Siberia are the second most important
resource for diamonds in the world, after the combined
southern African countries. We’re really onto something
here, targeting the area to the south of where Alrosa
operates in Yakutia. We are pioneers in essence.”
So far, Siberian has obtained five highly prospective
licenses covering 12,000 km2 within a settled and
infrastructure-rich portion of southern Siberia, close to
the Mongolian border, in the province of Irkutsk.
Sobie, a partner in Toronto, Canada-based MPH Consulting, knows the area well. He began work in Siberia
as a technical consultant for a group of Geneva-based
investors in 2004 after they were approached by Boris
Zubarev, former First Deputy Minister of Geology of
the USSR, and his team of local geological experts and
retired Alrosa senior consultants aware of the underexplored diamond potential.
After only a couple of visits to Siberia, Mr Sobie was
so impressed by the diamond potential he became the
managing director of the company.
“We are quite new,” Mr Sobie says. The local companies in Russia that applied for the licenses were formed
in 2004. Our corporate structure has been evolving
since then with Siberian Diamonds Limited incorporated in 2006. Currently we have a field office in Irkutsk, for
our staff of over 50, our head Russian office in Moscow,
as well as our registered office in Guernsey and my
office in Toronto. Eventually there will be a corporate
THE TEAM
PAUL SOBIE
Managing director
An economic geologist specialising in the exploration
and evaluation of diamond deposits, Mr Sobie has
20 years’ professional experience including extensive
project development for clients in the junior and
senior mining sectors. Since 1998 he has been a senior
partner of MPH Consulting Ltd, responsible for all
MPH’s diamond projects worldwide. One currently
active diamond mine, as well as two deposits being
developed (Liqhobong in Lesotho by European Diamonds, and the Lace Diamond Mine by Diamondcorp),
were identified by Mr Sobie and evaluated by MPH.
VLADIMIR SKLYAROV
Head, GeoExploration
Vladimir Sklyarov left his position as Head of the
Regional Resource Dept (1999-2006) of the Irkutsk
Government to take up his position leading Siberian
head office in either London or Toronto.”
SIBERIA’S RICH DIAMOND HISTORY
The region has a rich history for diamond discovery.
The first discoveries of diamonds were made in 1947
in major drainage systems in the Irkutsk region. What
followed was the discovery of the several alluvial
diamond deposits and the Mir, Udachnaya and Zarnitsa
kimberlites in 1955 across the border in Yakutia. ProducDiamonds’ exploration company, GeoExploration LLC.
He is a geologist by training and worked since graduation in 1974 for the Irkutsk Government, principally
on the Lena Gold Region including the Sukhoi Log
deposit.
ALEXANDER KURAKULOV
Technical consultant
Mr Kurakulov graduated in 1970 from the geological
faculty of Lvov State University. His speciality is geological survey and field exploration as an engineer-geologist. He has worked in various senior geologist roles
for Alrosa around the world, most recently as Deputy
Head of the Geological Exploration Dept. and Assistant
to the Director General of Joint Stock Company Alrosa.
From 1989 to 1993 he was elected deputy of the City
Soviet of the public deputies (Mirny city).
DR NATALIA ZUBAREVA
Executive vice chairperson
Dr Zubareva graduated from the Moscow State
Institute of International Relations with a degree in
tion from Mir resulted in a huge infrastructure rush in
the region with the cities of Mirny, Aikhal and Udachny
established. The diamonds found in Irkutsk were never
followed-up until now by SDL, due to the USSR’s and
Alrosa’s focus on building mines in Yakutia.
Heavily industrialised, the province of Irkutsk is the
best-developed in Siberia with a large mining industry,
the Trans Siberian Railway and several hydro-electric
economics and international affairs, and, three years
later, with a doctorate in economics. Since 2004 she
has been executive director (exploration projects) of
Baikal Mining Co and since 2000 director of Diamond
Symbol Ltd, specialising in project finance and investment in mining and exploration. From 1992-1994 she
headed RTZ’s office in Russia, and from 1994 to 2000
she was director of Zoloto Mining Ltd, which in 2002
was renamed Peter Hambro Mining plc.
ANDREW KRYLOV
CFO
Since 2003 Mr Krylov has been general director of
PetroTransInvest in Moscow, Russia where he has
developed and implemented the business, financial
and taxation models of this logistics company. From
2001-2003 he was deputy head of project finance at
Moscow Oil Refinery, and was also project manager
at Sibir Energy plc’s Moscow Office. From 1997-2001
Mr Krylov was an interest rate futures broker at ING
Barings.
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PROFILE
Diamonds
Left to right: C. Campbell, Paul Sobie (managing director)
and Alexander Kurakulov on TU Property drilling site
Summer 2006 sampling operation on TU property
during the summer and fall field seasons.”
A pre-IPO private placement of £4 million is now
being placed. Siberian Diamonds is targeting a dual
AIM-TSX-V listing for the third quarter of 2007.
BRIGHT FUTURE
Airborne magnetic survey aircraft AN-2
power plants.
In Siberia, alluvial deposits are most often associated
with the source kimberlite, one of the few places on
earth where that relationship still exists. Historically in
Siberia, kimberlite deposits are discovered by first finding the alluvial deposits associated with them.
These alluvial deposits are extremely rich and often
go into production first as the kimberlites are being
economically evaluated.
“Four out of our five licenses have significant
recoveries of alluvial diamonds so far,” Mr Sobie notes.
“You can’t call them deposits yet by
any means, but they do look very,
very promising. Coincident kimberlitic
indicator minerals of high interest tells
us that hardrock source for these alluvial
diamonds should be nearby.”
diamonds during 2006. Extensive follow-up geophysics, drainage sampling and target drilling is commencing as part of the three year programme to discover and
evaluate kimberlite and alluvial diamond deposits.
“SDL’s other three properties, Angoroi-Chonska (AC),
Murskaya (M) and Biryusa (B) also offer similar compelling exploration results including diamond occurences
and high interest kimberlitic indicator minerals. These
will be aggressively explored by the company during
2007 beginning with airborne magnetic surveying
(already completed on M) and large field programmes
VITAL STATISTICS
Name: Siberian Diamonds Limited
Address: Nerine House, St. George’s Place
St. Peter Port, Guernsey, GY1 6LT, UK
Website: www.siberiandiamonds.ru (under
construction)
Fieldwork on
TU Property
with Vladimir
Schukin
CONTACT
Managing director: Paul Sobie
E-mail: [email protected]
Heavy mineral
concentrate
sampling on
VB property
PEER GROUP
Diamondex Resources Ltd
Diamonds North Resources
Xceldiam Ltd
Gravity Diamonds Ltd
EXPLORATION WORK UNDER WAY
Work on Siberians first property, VerkneBiryusa (VB) where diamonds up to
7.46 ct were recovered, began with an
aeromagnetic survey in April 2006. This
three-year, US$15 million programme
will complete drainage sampling,
drilling, mini-bulk sampling of alluvials,
pipes/dykes, and bulk sampling of
alluvials and pipes/dykes. If successful,
the company anticipates pre-feasibility
studies by 2009.
At a second property being explored, Tanguy-Uda (TU), 121 diamonds
up to 2.43 ct. were found in the 1950s
in two adjacent low-energy drainages.
SDL has completed airborne surveying
and a drainage sampling program
for kimberlitic indicator minerals and
The 2007 exploration season should prove interesting
for this upstart after 2006 successfully advanced both
VB and TU properties with new diamond and kimberlite
indicator recoveries in areas with large numbers of priority geophysical anomalies. Results will be rapid with
work on all five properties, and the projects will benefit
from the years of research completed by SDL’s team.
“When you think of Siberia you imagine frozen Arctic
barrenlands,” says Mr Sobie. “It’s not like that at all, infact
in Irkutsk we have logging and agricultural towns and
good road access on four of our five licenses. Actually
we are as far south as you can be in Russia.”
“What our company offers is true, world-class
discovery potential – in the area where Alrosa works
and produces a third of the world’s diamonds from its
Siberian mines, some of the best deposits on earth.
Our area is equally as prospective with the same geology, and therefore we have the same sorts of target
models. It’s kind of a home-run situation – if we’re successful, we’re very likely to be very successful.”
SHARE INFORMATION
Listed: dual AIM and TSX-V listings in progress
Net cash: £4 million
Shares outstanding: 54,500,000
Shareholders: Boris Zubarev and
Dr Natalia Zubareva 45%
Dr Oleg Levin 15%
Eastbound Resources 12%
ASSOCIATES
Broker/financial adviser: Westwind Partners and
Fox-Davies Capital
Solicitor: Norton Rose
Auditor: LMH Casey McGrath
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