Tuesday, June 1, 2010

Dolat Ventures, Inc. (DOLV.OB) Discovers Diamonds in Sierra Leone

Dolat Ventures, Inc. announced today that their subsidiary, Millennium Mining, has discovered diamonds in initial tests at its washing plant in the West African country of Sierra Leone. Dredging for the diamonds took place in what is referred to as the Baimbawai Pool of the Sewa River. The test unveiled 300 stones totaling 187 carats with the largest stone being 6 carats and average stone size being .62 carats. The largest stone has an estimated value of $40,000 after cutting.

Initial testing has been small in scale and has only taken a few days to conduct, but successful. Dovid Hauck, President of Dolat Ventures, commented, “The first parcel was done on a very small test of 15-20 tons of gravel per day and the diamonds were extracted from the ground by hand and washed in a two-ton wash plant.” Results of the tests have yielded .40 carats per ton with over 80% gem quality.

Millennium Mining will be ramping up production to higher levels in the parcel to near operating capacity of 1500 tons of gravel per day. If averages hold true, this will produce 600 carats worth of diamonds per day. With regards to accelerating production, Mr. Hauck stated, “At these numbers and with the cost per carat averaging around $250, we will expect to be doing close to $4 Million dollars in total sales per month. With the new equipment that we have already purchased and installed we expect that these numbers will become the average very quickly in the upcoming months for Dolat Ventures.” Dolat announced on May 14th that they had purchased a new wash plant system to completely modernize their productions in the Baimbawai Pool.

Dolat Ventures acquired a majority stake in Millennium Mining LLC of Sierra Leone in April of this year. Dolat acquired 75% of the common and outstanding stock of the diamond producer in return for thirty million (30,000,000) common shares in a share exchange agreement. Since the agreement, Dolat has aggressively been executing their business plan of increasing operations in the heart of the Sewa River. The Sewa River is Sierra Leone’s most valuable commercial river as it yields approximately $90 million worth of diamonds per year. Diamond yields this year are up nearly 25% through the first 5 months of 2010 as compared to 2009 according to a report from Diamond New World.

More information on Dolat Ventures and their operations can be found on the company’s website at www.dove-diamonds.com.

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