Motapa Diamonds Inc.

Motapa Diamonds Inc.

March 03, 2005 12:56 ET

Motapa Diamonds Inc. Approves US$3.1 Million Annual Exploration Budget


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MOTAPA DIAMONDS INC.

TSX VENTURE SYMBOL: MTP

MARCH 3, 2005 - 12:56 ET

Motapa Diamonds Inc. Approves US$3.1 Million Annual
Exploration Budget

CAPE TOWN, SOUTH AFRICA--(CCNMatthews - March 3, 2005) - Motapa Diamonds
Inc. (TSX VENTURE:MTP) has approved a US$3.1 million exploration budget
for the fiscal year ending February 28, 2006. Recent developments on
Motapa's programs and highlights of the FY'06 work plan are summarized
below.

Kavango Project (Namibia)

Three additional kimberlite discoveries have been confirmed in the
Kaudom south kimberlite cluster on the basis of kimberlite indicator
mineral recoveries from drill samples, bringing the total number of
confirmed kimberlite bodies in this cluster to six. As announced in
Motapa's November 24, 2004 news release, drill samples from anomalies
KD-89 and KD-99 were provisionally identified in the field as altered
kimberlite crater material. This field interpretation has been confirmed
by laboratory recovery of abundant ilmenite from drill samples. In
addition, drill samples from anomaly KD-94 yielded significant ilmenite
recoveries, which, when combined with trace element geochemical results,
confirm the presence of kimberlite.

Kimberlite indicator minerals recovered from discoveries in the Kaudom
south cluster are dominated by ilmenite. For this reason, Motapa
believes that the kimberlite source for the Omatako diamond indicator
mineral anomaly, dominated by pyrope garnet and having a high proportion
of G10 pyrope compositions, remains to be discovered.

Drill test work, initiated in late January, has been suspended until
early April during the height of the Namibian rainy season to avoid
unnecessary added logistical costs. In addition, the rotary mud drilling
technique tested has not provided satisfactory sample material. Core
drilling will be employed throughout the duration of the FY'06 program.
Three airborne magnetic anomalies located in the northeast part of the
Kavango project area were tested between late January and mid-February;
no kimberlite was intersected in these holes.

Detailed interpretation of final aeromagnetic data over the Kavango
project area has been completed and 40 new magnetic anomalies have been
prioritized for additional evaluation.

A drilling budget of US$1.2 million has been approved for FY'06 and the
primary focus of this program will be targets on the Kavango group of
Exclusive Prospecting Licenses located to the north and west of the
Kaudom south kimberlite cluster.

The Company's Kavango project in north-east Namibia encompasses
approximately 1.7 million hectares in which Motapa has a 100% interest.

Mulonga Plain Joint Venture (Zambia)

In western Zambia, the Company has a 60% interest in three prospecting
licenses covering approximately 3.3 million hectares. These licenses
collectively make up the Mulonga Plain Joint Venture which is subdivided
into two project areas, the Mulonga Plain project area and the Kashiji
plain project area.

Mulonga Plain Project Area

Motapa has received preliminary data from the airborne gravity survey
referenced in the January 26, 2005 news release. On the basis of this
preliminary interpretation, 71 gravity anomalies have been prioritized
as candidates for follow-up evaluation. Additional interpretive work is
required for further screening of these anomalies. A drilling budget of
US$520,000 has been allocated for the Mulonga Plain project area in
anticipation of these interpretations, and the work plan anticipates
drill testing between 10 and 15 targets commencing in late July or early
August of this year.

Kashiji Plain Project Area

Laboratory work on samples collected in the Kashiji Plain project area
in 2004 is ongoing. Budget allocation and planning for the Kashiji Plain
project has been deferred until these analyses are complete.

Lebiri Project (Gabon)

Analysis of reconnaissance samples collected in 2004 has resulted in
recovery of abundant high-interest chromite grains in the vicinity of
confirmed kimberlitic chromite grains recovered from prior sampling
programs by Motapa. Two discrete anomaly areas within the Lebiri permit
have been delineated on the basis of this work.

On the basis of these results, Motapa is planning an aeromagnetic survey
with the aim of developing potential drill targets. A budget of
US$400,000 has been allocated to this project for FY'06 and current
planning envisages aeromagnetic survey work being initiated in June.

Motapa's Lebiri diamond exploration permit located in east central Gabon
covers an area of approximately 4.8 million hectares in which Motapa has
100% interest.

Botswana

Motapa's Botswana properties include 35 wholly-owned prospecting
licenses covering a total area of approximately 2.35 million hectares.
In addition to these wholly owned licenses Motapa holds a 60% interest
in seven prospecting licenses covering a total area of approximately
480,000 hectares. Motapa can earn a 75% interest in these licenses by
fully funding exploration work to the completion of a feasibility study.

As a result of the significant exploration progress on Motapa's projects
in Namibia, Zambia and Gabon, and the consequent increase in expenditure
requirements for these project areas, Motapa has elected to seek out one
or more joint venture partners for its Botswana properties.

Project Generation

A budget of US$340,000 has been allocated for FY'06 to fund Motapa's
ongoing generative work throughout the African continent. A number of
specific opportunities have been identified which Motapa believes merit
focused evaluation. This funding allocation is designed to bring one or
more of these into the company's project portfolio during the course of
this year.

In summary, the company is satisfied that the FY'06 work program and
budget constitutes a balanced and focused exploration program with
potential to significantly advance each of Motapa's major programs to
build on the achievements of the past year.

On behalf of the Board

MOTAPA DIAMONDS INC.

Dr. Larry Ott, Chief Executive Officer

This news release may contain assumptions, estimates, and other
forward-looking statements regarding future events. Such forward-looking
statements involve inherent risks and uncertainties and are subject to
factors, many of which are beyond the Company's control, that may cause
actual results or performance to differ materially from those currently
anticipated in such statements.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Motapa Diamonds Inc.
    Dr. Larry Ott
    Chief Executive Officer
    (970) 533-7984 or 27-21-531-0422
    info@motapadiamonds.com
    www.motapadiamonds.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this news release.