Rhonda Corporation

Rhonda Corporation

March 03, 2005 15:00 ET

Rhonda Corporation: Knife Kimberlite Revised Size of 10.2 Hectares


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RHONDA CORPORATION

TSX VENTURE SYMBOL: RDM

MARCH 3, 2005 - 15:00 ET

Rhonda Corporation: Knife Kimberlite Revised Size of
10.2 Hectares

CALGARY, ALBERTA--(CCNMatthews - March 3, 2005) - Glen Alston, President
of Rhonda Corporation (TSX VENTURE:RDM) ("Rhonda") and joint venture
partner De Beers Canada Inc. ("De Beers") are pleased to release the
revised geologic model of the Knife kimberlite pipe. Three-dimensional
GEMCOM modeling of all petrologic data from 20 drill holes (nine holes
drilled in 2000-2001 and eleven holes drilled in 2004) has produced a
kimberlite pipe model with an estimated surface area of 10.2 hectares
(25.2 acres) up 56% from an earlier estimate of 6.5 hectares (15.1
acres).

Highlights:

- Knife Kimberlite at least 10.2 (25.2 acres) hectares in size.

- New GEMCOM model interprets four phases of volcaniclastic kimberlite
(MXVK, GVK, BVK, and SGVK).

- Estimated 36.1 million tonnes of kimberlite down to 260 meters below
surface. SGVK (formerly GPK) is the most volumetrically significant
phase contained an estimated 21.83 million tonnes.

- All phases are diamond bearing and three of the four contain stones
greater than a bottom sieve size of 1.0mm.

-- BVK returned an octahedron, weighing 0.08 carats, the largest stone
from the 2004-microdiamond results.

-- SGVK returned four diamonds greater than a bottom sieve of 1.0mm
classified as either broken octahedrons or complex crystals.

-- MXPK returned a complex crystal of 0.22 carats, the largest stone to
date reported in the 2001 drilling results.

The Knife kimberlite located 120 kilometres southeast of Kugluktuk,
Nunavut is being explored under a joint venture agreement with De Beers
who have a 51% interest in the property. De Beers can earn an additional
19% interest in the property by spending a total of $10 million. De
Beers has spent approximately $4 million on the property to date and
will carry Rhonda to production.

The original geologic model for the Knife kimberlite based on the
2000-2001 core drilling identified three dominant phases of pyroclastic
kimberlite. The new interpretation incorporating detailed petrologic
studies on the 2004 kimberlite drill core indicates that the Knife
kimberlite comprised four volumetrically dominant phases three of which
were previously identified. They include:

- MXVK Mantle xenolith volcaniclastic kimberlite (previously MXPK)

- GVK Grey volcaniclastic kimberlite (NEW)

- BVK Brown volcaniclastic kimberlite (previously BPK)

- SGVK Shardy grey volcaniclastic kimberlite (previously GPK)

These four phases of kimberlite represent separate volcanic events. The
relationship within the pipe establishes the relative timing of the
units. According to the model, SGVK, the oldest unit, formed the initial
crater. Following eruptions emplaced the BVK, GVK and MXVK phases in
sequence. Kimberlite ejected during each of these events in-filled the
crater.

GEMCOM modeling based on drill hole intercepts and petrology reflects
the revised interpretation. Based on only six country rock pierce
points, the model is poorly constrained, especially at depth. Tonnage
estimates calculated by De Beers estimate a minimum of 36.1 million
tonnes of kimberlite to the depth of 260 metres below the surface (Table
1). SGVK contains significantly more tonnage than any other phase with
an estimate of 21.83 million tonnes.



Table 1.

----------------------------------------------
Unit Surface Area (ha) Tonnes (Mt)
----------------------------------------------
MXVK 1.8 4.85
GVK 2.6 3.57
BVK 3.2 5.85
SGVK 2.6 21.83
----------------------------------------------
Total 10.2 36.10
----------------------------------------------
----------------------------------------------


Diamonds recovered through a caustic fusion process by SRC from the 2004
drill program (News Release, November 19, 2004) were sent to De Beers
Kimberley Micro Diamond Lab (KMDL) to be weighed, size classified, and
described. An audit of the diamonds by KMDL reported 742 diamonds
weighing 0.459001 carats from 1005.55 kilograms of kimberlite, compared
to 760 diamonds weighing 0.46500 carats reported in News Release,
November 19, 2004. Restated audited results according to rock units and
using De Beers' screen size classification are shown in Table 2 for
three of the four dominate phases.



Table 2

------------------------------------------------------------------------
Sample Bottom Sieve (mm)
ROCK Weight --------------------------------------------------------
CODE (Kg) -0.074 0.074 0.104 0.150 0.212 0.300 0.500 1.000 2.000
------------------------------------------------------------------------
BVK 437.65 30 76 70 46 33 18 10 0 1
------------------------------------------------------------------------
SGVK 243.90 20 61 39 48 25 15 9 4 0
------------------------------------------------------------------------
GVK 324.00 13 70 63 46 22 16 7 0 0
------------------------------------------------------------------------
Totals 1005.55 63 207 172 140 80 49 26 4 1
------------------------------------------------------------------------
------------------------------------------------------------------------


------------------------------------------------------
ROCK CODE Sample Weight (Kg) Total Crts
------------------------------------------------------
BVK 437.65 284 0.197774
------------------------------------------------------
SGVK 243.90 221 0.178307
------------------------------------------------------
GVK 324.00 237 0.082920
------------------------------------------------------
Totals 1005.55 742 0.459001
------------------------------------------------------
------------------------------------------------------


Although the MXVK was drilled during the 2004 program, it was not
submitted for micro-diamond extraction. MXVK was drilled in 2001 and
micro-diamond results were released in News Release, July 29, 2003.

Over 2100 micro-diamonds from all size classes greater than 74 microns
were analyzed by De Beers Mineral Resource Management (DMRM) group for
the four dominate kimberlite phases. Macro-grade estimates and estimated
size distribution for each major kimberlite units were calculated.
Empirical allowances were also made for diamond recovery in a commercial
plant through crushing and grinding process (factorized) as well as
avoidable dilution. The estimated factorized grades for each kimberlite
phase provided by DMRM is shown in Table 3. These results are only an
estimate of commercial grade and do not imply a mineral resource.

The estimates indicate that three of the dominant phases of kimberlite,
SGVK, BVK and MXVK seem consistent, ranging between 27-31 cpht using a
+1.0 mm cut-off and 25 cpht using a +1.5mm cut-off. Volumetrically,
these phases comprise 90% of the total estimated tonnage.



--------------------------------------------------------
Table 3 (1)Grade Estimate (cpht)
Kimberlite --------------------------------------
Phase +1.0mm cut-off +1.5mm cut-off
--------------------------------------------------------
MXVK 31 25
GVK 16 13
BVK 27 25
SGVK 29 25
--------------------------------------------------------
(1) Estimates from De Beers Mineral Resource Management
cpht equals carats per hundred tonnes


These results demonstrate all phases are diamond bearing. The largest
stone weighing 0.22 carats was recovered in the MXVK (New Release, July
29, 2003), while an octahedron weighing 0.08 carats (16.092 mgs) was
recovered in the BVK. The most notable results of 70 diamonds in 7.95
kilograms of kimberlite (New Release, November 19, 2004) were recovered
from the SGVK phase, which also contained four diamonds classified as
either broken octahedron or complex crystals, greater than a bottom
sieve of 1.0mm.

Detailed petrologic research and geologic modeling of the Knife
kimberlite completes the initial assessment of the internal geology and
the relationship of micro-diamonds in each dominant phase by De Beers. A
next step in the evaluation process is to confirm macrodiamond grades
and to recover a parcel of macrodiamonds for revenue modelling. The
Management Committee has not yet reached a decision on the scope and
timing of the next phase of work.

Torrie Chartier, M.Sc., MBA and consulting geologist for Rhonda Corp.,
is the company's qualified person and has reviewed this data.

Rhonda Corporation is an Alberta based corporation with mineral
exploration projects located in the Coronation Diamond District in
Nunavut Territory.

WARNING: the Company relies upon litigation protection for "forward
looking" statements. For further information, please contact:

Shares issued: 51,374,911

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Rhonda Corporation
    Robert L. d'Artois
    VP Investor Relations
    1-800-793-8370/ 403-269-5369
    (403) 261-2866 (FAX)
    Email: bdartois@rhondacorp.com
    Website: www.rhondacorp.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.