Canaf Group Inc.

Canaf Group Inc.

December 03, 2007 15:11 ET

Canaf Group Inc.: Program and Further Details Regarding New Stone Mining SPRL Diamond Mining Operations in the Democratic Republic of the Congo

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 3, 2007) - Canaf Group Inc. (TSX VENTURE:CAF) ("Canaf") announced today a proposed program for the New Stone Mining diamond operations in the Democratic Republic of the Congo.

Canaf is in the due diligence phase of the proposed acquisition of 51% of New Stone Mining (see press release dated November 27, 2007). New Stone Mining has already commenced preparations for mining operations and at present has obtained the release of equipment from Customs. New Stone Mining is currently preparing for transport of the barge and related mining equipment down river to the concession.

This equipment that New Stone Mining has designed uses unique technology that enables un-graded gravel of varying size to be suctioned from the riverbed without waste or accidental loss during the sifting process. The nature of this process allows for greater levels of security and minimal to zero human contact.

New Stone Mining owns four concessions in the Democratic Republic of the Congo covering a total area of about 46 square kilometres (4,600 hectares). New Stone Mining also owns concessions in Tanzania; information on these will follow in due course.

Below is an estimated timeline for the mining operations as calculated by Canaf:

1. Date of commissioning of the barge in Kisagani - January 8, 2008;
2. Date of production (estimated 7 days) - January 15, 2008;
3. Commencement of operations - January 16, 2008;
It is anticipated that results will be seen within the first 24 to 36
4. Average findings in respect of carats per tonne - approximately 21
days from such date in order to establish average tonnage.

Canaf will be sending out a representative to supervise all mining operations and to carry out a formal due diligence. All findings will be published as soon as they arrive.

As previously mentioned, Canaf has managed to negotiate a closing date of May 1, 2008 when the balance of the purchase price, in the sum of US$19 million, shall become due, however this sum shall be only payable within 24 months from the effective date, free of interest. The acquisition is also subject to regulatory approval.

David Way, President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canaf Group Inc.
    Brad Jefferson
    (604) 767-3977
    (604) 682-2275 (FAX)
    Ascenta Capital Partners Inc.
    Bryson Goodwin
    Investor Relations
    (604) 684-4743 ext. 239 or Toll Free: 1-866-684-4209
    (604) 939-1292 (FAX)