Diagem Inc.
TSX VENTURE : DGE

Diagem Inc.

September 27, 2007 10:04 ET

Diagem's Chapadao Cluster of Kimberlites, a Distinct Kimberlite Event Linked to the Juina Historical Alluvial Diamond Production

MONTREAL, QUEBEC--(Marketwire - Sept. 27, 2007) - Diagem Inc. ("Diagem" or "the Company") (TSX VENTURE:DGE) is pleased to report on an age-dating study of the kimberlites from the newly discovered Chapadao cluster. The study provides evidence for a distinct and older kimberlite event believed to be a significant source of the historical alluvial production in the Juina Diamond Province in the state of Mato Grosso, Brazil.

Geological observations conducted in 1998 by Dr. Felix Kaminsky, a renowned diamond consultant with world-wide experience, and earlier by Diagem's Chief Geologist Paulo Andreazza, supported the view that there should be older kimberlites overlain by Upper-Cretaceous rocks in the Chapadao area which may be major sources of alluvial super-deep diamonds in this area. On the strength of the recent age-dating data, Dr. Kaminsky, concluded: "The newly discovered kimberlites forming the Pandrea cluster within the Chapadao area may be considered as these long-expected kimberlites..."Such a primary target remained elusive for nearly three decades despite the work of companies such as De Beers, Rio Tinto and Diagem until its discovery by Diagem in late 2006.

An updated 2007 study by Dr. Kaminsky, who published scientific papers in 2001 and 2002 on the "super-deep" nature of the Juina alluvial diamonds and their unique indicator mineral associations, is based on zircon U-Pb age determinations on three kimberlite pipes from the Pandrea cluster in the Chapadao area. The study determined and concluded that the Chapadao kimberlitic event occurred 94 million years ago (pre-Upper Cretaceous) while the weakly diamondiferous and mostly barren kimberlites developed in the central part of the Juina area were determined to be 80 million years old (Late Cretaceous), based on the work of Davis, 1977.

"This is another significant piece of the puzzle," said Denis Francoeur, Diagem's CEO. "Since the recognition by Diagem's geologists of a diamondiferous layer of kimberlitic origin on the Chapadao, originally exposed by the local miners, the Chapadao has slowly revealed its secrets and continues to be the primary focus of our exploration efforts."

Based on geophysical and geological interpretation, Diagem has identified at least seven closely spaced kimberlite bodies, with a further eight targets still to be investigated. Based on the 13 surface bulk samples taken in December 2006, several of the identified bodies have proven to be diamondiferous with grades up to 1.26 carats per cubic metre, substantiating the grades obtained by local miners. Diagem has documented the recovery by the small miners of valuable large pink diamonds, such as the 9.32 carat diamond purchased by the Company and currently being cut and marketed in Antwerp, Belgium. (See news release dated September 11, 2007.)

Future work in the Chapadao area will include drilling and more surface bulk sampling of the kimberlite bodies. The work is pending approval of the final exploration report by the DNPM (Brazilian National Department of Mineral Production) who have recently visited the area and should soon issue authorization to carry out additional work.

The age-dating study is the first of five separate studies being conducted by Dr. Kaminsky to better qualify the newly discovered Chapadao kimberlites. Reports on the petrography, mineralogy, chemistry and physical characteristics of the Chapadao diamonds, and on their associated indicator minerals and kimberlitic host rocks are pending and will be released upon availability.

This press release has been reviewed by Mousseau Tremblay, Ph.D, P. Eng., Diagem's Chairman and a qualified person under National Instrument 43-101.

About Dr. Felix Kaminsky, Ph.D., P. Geo.

Dr. Kaminsky divides his time between Vancouver and Moscow as President of KM Diamond Exploration Ltd. of Vancouver, an international geological consulting firm, and Director of the Institute of Diamonds, Russian Academy of Natural Sciences, Moscow. His research achievements, conference and meeting activities, and distinctions and awards put him among the world's foremost diamond exploration consultants.

Dr. Kaminsky is a member of the Mineralogical Association of Canada, the Association of Professional Engineers and Geoscientists of the Province of British Columbia, and the British Columbia and Yukon Chamber of Mines. He obtained his first degree (Honours M.S. in Geology) from Moscow State University, later obtaining a M.S. in Geophysics and a Ph.D. in Geology and Mineralogy.

Prior to coming to Canada in 1994, Dr. Kaminsky was chief research scientist and consultant to the Diamond Department, Central Research Institute of Geology for Prospecting of Base and Precious Metals, for the Geological Committee of Russia, in Moscow.

About Diagem

Diagem Inc. is a publicly listed Canadian exploration mining 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 be the main sources of the Juina Province historical alluvial diamond production.

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)
    or
    Nicole Blanchard
    Investor Relations
    450-627-6600
    www.diagem.com