Diagem Inc.
TSX VENTURE : DGE

Diagem Inc.

January 07, 2008 09:59 ET

Diagem Files 43-101 Report on Collier-04 Resource Estimate

MONTREAL, QUEBEC--(Marketwire - Jan. 7, 2008) - Diagem Inc. ("Diagem" or "the Company") (TSX VENTURE:DGE) is pleased to report that it has filed with SEDAR a NI 43-101 report on its Collier-04 Diamond Project, in the state of Mato Grosso, Brazil. This report summarizes Diagem's data available as of May, 2007 and provides a resource estimate for the weathered portion of the Collier-04 kimberlite pipe.

The initial resource targeted is restricted to a modest near-surface deposit. An indicated mineral resource of 650,000 m3 at an average grade of 0.30 cts/m3 was developed for the combined soil, gravel, and the weathered portion of the kimberlite pipe (down to a depth of 12 metres) yielding an estimated 200,000 carats (Table 1 below). All sample grades were obtained from heavy mineral concentrates using a bottom screen of + 1.7mm. The resource was calculated using an overall 0.20 cts/m3 lower cut-off for the three units described above as a conceptual break-even grade. This has defined three separate zones which could be mined without significant dilution. Completion of a pre-feasibility study is recommended.



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Table 1: Indicated Mineral Resource for material coarser than 1.7mm
and using a 0.2 cts/m3 lower cut-off
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Volume Grade
m3 cts/m3 Carats
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Soil 99,767 0.263 26,221
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Eluvial 47,132 0.729 34,382
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Kimberlitic Saprolite 503,444 0.273 137,516
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Total S + E 146,899 0.413 60,603
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Total S + E + K 650,343 0.305 198,119
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Further exploration could result in increased resources. Should the current project prove feasible, deepening of the pit(s) and the addition of an attrition mill to the operation flowchart would allow access to more than 10 million tonnes (down to no more than 100 metres) of kimberlite material based on the historical resource estimates (pre-2001) made by Rio Tinto on the strength of more than 100 drill holes. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.

Modeling methodology and grade interpolation was constrained to major lithologic units. Inverse distance weighing was used to develop the resource model of the gravel and soil deposits, whereas normal weighing average was used for grade estimates of the kimberlite. Resource modeling for the kimberlite was established with cross-sections every 70 metres and constrained by a pit outline.

The bulk sampling of the eluvial/coluvial layer overlying the Collier-04 kimberlite pipe was carried out in two phases totaling 1,487 m3 of in situ material extracted from 60 samples. Fifteen (15) of the samples were twinned samples to verify repeatability. The results of the bulk tests yielded an average grade of 0.62 cts/m3. The average diamond size was 0.15 carats.

The soil cover overlying the eluvial material was conducted to determine if it could be included with the eluvial and kimberlitic material at the mining stage to avoid stripping costs. A total of 1,849 m3 of material in 36 samples yielded an average grade of 0.249 cts/m3 with an average diamond size of 0.13 carats. More importantly, results suggested that three zones could probably be mined without significant dilution.

The saprolitic kimberlite was bulk tested by 31 samples in 20 trenches for a total of 3,603 m3 of material extracted. 8,621 diamonds were recovered yielding an average grade of 0.3 cts/m3. The average diamond size was 0.12 carats.

The thickness of the soil and eluvial layer was measured by auger drilling conducted on a 50 X 50 metre grid over the entire surface area of the kimberlite pipe. The bulk samples were collected every 100 metres on north-south lines 50 metres apart which when rotated about a 45 degree axis resulted in 70 X 70 metre resource blocks. The trenches in the kimberlitic saprolite were dug 50 m to 100 apart beneath the three zones of best grades within the overlying soil and eluvial material. Resulting kimbertlite grades were not projected beyond a depth of 12 metres.

The Collier-04 development block forms part of Property 214, a mining concession, which is 100% owned by Diagem. The property is subject to certain production royalties to Rio Tinto Desenvolvimentos Minerais Ltda (RTDM) and to the surface owner of the land.

The person responsible for the resource estimate is Consulting Geologist Felix V. Kaminsky, Ph.D., P.Geo., an independent qualified person under National Instrument 43-101.

About Diagem

Diagem Inc. is a publicly listed Canadian exploration-stage company focused on primary diamondiferous resources in the Juina Diamond Province of Mato Grosso, Brazil, where it controls a large portfolio of mineral properties. The Company has one advanced development stage project and recently discovered two clusters of kimberlite pipes believed to a significant source of Juina's historical alluvial diamond production. The historical Juina alluvial diamond production is commonly referred to as "Indian goods". However, the Juina area is accessible year round and is amenable to open pit mining which translates into low extraction costs. Preliminary diamond grades of the Chapadao discovery area are encouraging (see press release dated January 11, 2007). The area is also known for the occurrence of a valuable rare type of diamonds often harbouring a fancy pink colour (see press release dated November 13, 2007).

Forward-looking statements: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE

Contact Information

  • Diagem Inc.
    Denis Francoeur, CEO
    514-866-6001 (ext 265)
    or
    Diagem Inc.
    Paul Einarson, CFO
    514-866-6001 (ext 251)
    www.diagem.com
    or
    Nicole Blanchard
    Investor Relations
    450-973-6690