Gope

Gem Diamonds acquired Gope Exploration from De Beers and Xstrata in May 2007 for US$34 million. A mining licence application was submitted in July 2007 and section 51 negotiations with the Government of Botswana, which are expected to be completed in 2009, will determine the key terms of the mining licence.

Gope has been sampled to a depth of 400m and currently has 78 million tonnes of indicated resource at a grade of 19.4 cpht. Gem Diamonds hopes to develop Gope into a world-class producing mine by 2013, pending economic circumstances. Employing new mining techniques, Gope is expected to be developed into a 6mtpa operation producing in excess of one million carats per annum, at an estimated capital cost of US$500-600 million.

Gope is named after the region of the Central Kalahari Game Reserve (CKGR) where the Gope 25 kimberlite pipe is located. As the deposit lies 45km within the eastern border of the CKGR, the mine development will conform to the highest environmental standards to ensure that the environmental impact is minimised. Independent advisors, Marsh Environmental Services, a division of Marsh (Pty) Ltd, were appointed to complete the environmental impact assessment which included a stakeholder engagement process. For more information on Marsh Environmental Services’ independent assessment process, please visit their website www.marsh-africa.com. Gope’s environmental impact assessment report received final approval in October 2008.