Brazilian Diamonds Limited
TSX : BDY
AIM : BDY

Brazilian Diamonds Limited

January 15, 2007 06:00 ET

Brazilian Diamonds Limited: Further Microdiamonds Recovered at Regis Kimberlite Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 15, 2007) - Brazilian Diamonds Limited (TSX:BDY)(AIM:BDY) is pleased to announce that it continues to recover both micro and macro diamonds from core drilling on its large Regis kimberlite project in Brazil. These new results confirm that the Regis kimberlite is diamond-bearing and provides further support for the Company's in-house exploration model for diamond-bearing kimberlites within this region of Brazil. The ongoing validation of this model further enhances the exploration potential of the other kimberlite targets within the Company's licence portfolio.

The Company has now received the results of caustic fusion testing for micro-diamonds from the second drill hole at the Regis kimberlite. This second drill hole, RDH02, returned a total of 20 micro-diamonds from 381.3 kilograms (kg) of kimberlite core processed. RDH02 was drilled vertically to a depth of 251 metres (m), with kimberlite core sampled from the 88 m to 251 m interval. Significantly, 18 of the 20 micro-diamonds recovered were encountered from the interval between 229.6 m and 243.9 m vertical depth, which weighed 32.5 kg in total. This prolific interval is now being examined further to determine whether it represents a high grade portion of the kimberlite.

Core from RDH02 was split at the Company's Patos de Minas laboratory and shipped in 47 batches of approximately 8 kg each to the Saskatchewan Research Council (SRC) Laboratory, in Saskatoon, Canada. The kimberlite was tested for micro-diamonds using the caustic fusion method with a bottom screen size of 0.075 mm; micro-diamonds which remained on 0.075 to 0.212 mm screens were recovered (Table 1).



Table 1: Size distribution of micro-diamonds from drill hole RDH02 at
the Regis Kimberlite Pipe, in central Minas Gerais State, Brazil.

---------------------------------------
No. of
micro- Total sample
Screen size diamonds weight
---------------------------------------

---------------------------------------
0.600mm 0
---------------------------------------
0.425mm 0
---------------------------------------
0.300mm 0
---------------------------------------
0.212mm 1
---------------------------------------
0.150mm 1
---------------------------------------
0.106mm 9
---------------------------------------
0.075mm 9
---------------------------------------

---------------------------------------
20 381.3 kg
---------------------------------------


RDH02 was drilled vertically 112 m east of RDH01, which was previously reported in a press release dated October 17, 2006 as yielding 129 micro-diamonds from 348.75 kg of kimberlite. Drill holes RDH01 and RDH02 were completed in August 2006 to depths of 317 m and 251 m respectively, in a central, pipe-like zone of approximately 20 hectares in size within the larger Regis kimberlite body. This central pipe-like body was previously untested by previous exploration and is now demonstrated to be diamond-bearing.

Delineation of this central pipe at the Regis Kimberlite continues with drill holes RDH03 and RDH04 having been recently completed to vertical depths of 152.0 and 364.3 m respectively. Preliminary examination of core suggests RDH03 and RDH04 comprise multiple kimberlite phases including a new, previously untested mantle xenolith-rich interval in RDH03. Each kimberlite phase has the potential for carrying a different concentration of diamonds. Two additional holes (RDH05 and RDH06) are currently being completed in order to more fully delineate the central pipe. Core from each drill hole will be sent to SRC for micro-diamond testing and the results expected during the first and second quarters of 2007.

In addition to the caustic fusion tests completed on drill holes RDH01 and RDH02, selected intervals from the reference half split core from drill hole RDH01 were processed for indicator minerals at the Company's Patos de Minas laboratory, which is ISO 17025 rated for certain indicator mineral recovery processes. The intervals processed consisted of the two zones which produced high micro-diamond counts, 113.4 to 142.8 m and 301.7 to 311.5 m. The interval 301.7 to 331.5 m (start weight 10.0 kg) yielded high counts of typical kimberlitic Cr-pyrope garnets, chrome diopside, forsteritic olivine, enstatite, chromite, Mg-ilmenite and two diamond fragments. These diamond fragments are both 0.6 mm in the longest dimension and appear to be broken pieces of the same original stone. The indicator mineral samples from RDH01 were crushed until greater than 90% of material passed through a -1.0 mm screen, using a bottom screen size of 0.25 mm. The samples were concentrated for heavy minerals using water columns and then picked for indicator minerals including diamonds by hand under optical microscopes.

The Company considers that the recovery of micro-diamonds from both of the first two deep drill tests of the Regis Kimberlite to be an important advance, both for the ongoing testing of the pipe itself, and for our diamond exploration model, which will be further tested at other kimberlite targets within the region. Results from the next phase of drilling will be announced as soon as they become available.

Dr. Harrison Cookenboo, (P.Geo) and Consulting Geologist, is the Qualified Person as defined under National Instrument 43-101 responsible for the technical disclosure in this release, and has reviewed and approved the contents of this release.

Editors' Note:-

Brazilian Diamonds is a leading Brazil-based exploration company focused on the discovery of kimberlites on its extensive portfolio of properties in the States of Minas Gerais and Bahia, with the goal of becoming a significant producer of diamonds.

The Company is awaiting final approval before commencing the environmental licensing process for development of the Canastra 1 kimberlite body for which mine feasibility work has already been completed and the required Mines Department approvals are already in place. It is intended to bring Canastra 1 into production once this licensing process is completed.

The Company has recently acquired the Chapada Diamantina project in Bahia from De Beers which includes the diamondiferous Salvador 1 kimberlite. Plans are under-way to undertake a large bulk sample at Salvador 1 utilizing a 15 tonne per hour DMS treatment plant, which is currently located at the Company's Santo Antonio do Bonito property. De Beers retains a right to acquire up to 40% of any kimberlite found containing more that 200 carats of diamonds on the Chapada Diamantina properties.

The Company has a fully operational diamond separation/analysis laboratory at Patos de Minas, Minas Gerais which is strategically located near its properties in the Santo Antonio and Coromandel areas. The Company has a highly experienced team including four geologists most of whom are located at the Company's facilities in Brazil.

The Company's strategy for non-core activities on its properties is to form joint ventures. A Cdn$1,000,000 feasibility study is currently underway for a joint venture for the mining of alluvial diamonds on its properties in the Santo Antonio river drainage. The joint venture involves two important Brazilian companies: CODEMIG, the state owned mining development organization and Mineracao Rio Novo Ltda., a wholly owned subsidiary of Andrade Gutierrez SA, one of Brazil's largest civil engineering firms and an existing large scale, dredge based producer of alluvial diamonds.

Contact Information

  • Brazilian Diamonds Limited
    Ken Judge
    Chairman
    + 44 7733 001 002
    or
    Brazilian Diamonds Limited
    Stephen Fabian
    President & CEO
    + 55 31 8814 5111
    or
    Brazilian Diamonds Limited
    Investor Relations
    Europe
    + 44 207 590 5503
    or
    Brazilian Diamonds Limited
    Investor Relations
    North America
    (604) 689-2599 or 1-866-689-2599
    (604) 689-3609 (FAX)
    Email: info@braziliandiamonds.com
    Website: www.braziliandiamonds.com
    or
    Hanson Westhouse Limited (Nomad to the Company)
    Tim Feather
    + 44 113 246 2610
    or
    Teather & Greenwood: Landsbanki (Broker to the Company)
    James Maxwell
    + 44 207 426 9000