Vaaldiam Resources Ltd.

Vaaldiam Resources Ltd.

January 14, 2008 08:00 ET

Vaaldiam Resources Ltd.: 7.97 Carat Diamond Recovered in Brauna Sample

Large Diamonds and High Grade Enhances Economic Potential of Brauna Project

TORONTO, ONTARIO--(Marketwire - Jan. 14, 2008) - Vaaldiam Resources Ltd. (TSX:VAA) has recovered a 7.97 carat diamond during sampling of the Brauna 8 kimberlite dike, situated on the Company's 100% owned Brauna project in the State of Bahia, Brazil. The diamond is the largest recovered from the Brauna kimberlites by Vaaldiam and confirms the presence of large, high value diamonds in the kimberlites. The diamond is a very high quality white octahedral stone with no visual evidence of inclusions. In total, 41 diamonds with a total weight of 10.94 carats were recovered during processing of the 13.78 dry tonnes mini-bulk sample, indicating a recovered grade of 79.39 carats per 100 tonnes ("cpht"). The average size of the diamonds recovered was 0.27 carats per stone. The five largest diamonds recovered in this sample weighed 7.97, 0.57, 0.49, 0.37, and 0.25 carats. Photos of the diamonds recovered from the mini-bulk sample of Brauna 8 are available for viewing on the Company's website at

Ken Johnson, President and Chief Executive Officer of Vaaldiam commented that "the recovery of the 7.97 carat diamond from our most recent sampling of the Brauna 8 dike system confirms the presence of large high quality diamonds in the Brauna kimberlites. We are particularly encouraged by the excellent colour, shape and clarity of the diamonds recovered from our sampling of the Brauna kimberlites, which suggests that there is excellent potential for gem quality high value diamonds. This together with the outstanding diamond grade greatly enhances the economic potential of the Brauna kimberlites. These latest results provide further encouragement for us to move aggressively through our current bulk sampling program, and complete the planned feasibility study during the latter half of 2008."

This latest sample represents a second, additional mini-bulk sample of the Brauna 8 kimberlite occurrence, and was completed to increase the total sample volume of the kimberlite for diamond grade confirmation purposes, and reduce the effects of diamond breakage encountered during the processing of the initial sample. In the initial sample reported on September 14, 2007, a total of 104 diamonds (including broken diamonds) with a total weight of 6.60 carats were recovered from 16.87 dry tonnes of kimberlite, indicating a recovered grade of 39.12 cpht. The largest diamond recovered from that initial sample weighed 0.92 carats and was pink in colour. Another pink diamond appeared to have been broken during processing. The remainder of the diamonds recovered were white in colour.

The following table summarizes the results of the two mini-bulk
samples from Brauna 8:

No. of
Diamonds Average
Sample Recovered Stone
Weight (greater Total Size Recovered
(dry than Weight (carats Grade
Sample tonnes) 0.850mm) (carats) /stone) (cpht)
Brauna 8 A 16.87 104 6.60 0.06 39.12
Brauna 8 B 13.78 41 10.94 0.27 79.39
Total 30.65 145 17.54 0.12 57.23

The Brauna 8 occurrence is a 4.5 metre wide, vertically oriented kimberlite dike which forms part of a northwest-trending dike system traced on surface over a distance of approximately 15 kilometres. Vaaldiam's samples were extracted from 9 metre deep shafts that allowed the excavation of fresh kimberlite that does not appear to be diluted by soil and calcrete which overlies the dike system.

The mini-bulk sample collected from the Brauna 8 kimberlite occurrence was processed at Vaaldiam's dense media plant, situated in Vaaldiam's secure facilities in the town of Nordestina, just 5 kilometres from the Brauna property. The processing plant consists of a crushing and feed circuit, a 300 kilogram per hour dense media separation module and a secure diamond recovery circuit capable of recovering diamonds larger than 0.85 mm using a square mesh screen. Simulated diamond tracers with a density similar to diamond were used to measure the efficiency of the plant, and indicated a recovery efficiency of 98.83%. Vaaldiam's geologists and technicians implemented strict chain-of-custody procedures during the extraction and processing of the sample to ensure the security of the sample. Reprocessing of the plant tailings from the latest sample from the Brauna 8 kimberlite will be completed as part of an audit of the processing plant efficiency to ensure the highest recovery rate is achieved for the sample processing.

Brauna 8 lies approximately five kilometres to the north of the 1.85 hectare Brauna 3 kimberlite pipe, which was recently the focus of a drilling program designed to delineate the pipe in sufficient detail to support a resource calculation. The extraction and processing of a 39.9 dry tonnes mini-bulk sample from the Brauna 3 pipe in 2007 resulted in the recovery of 59 diamonds with a total weight of 8.29 carats, indicating a recovered grade of 20.78 cpht. A total of 53 drill holes were completed during 2007 on a detailed grid pattern utilizing 25 metre drill spacing, delineating the kimberlite pipe to a depth of approximately 200 metres. Wardrop Mining and Minerals has recently been commissioned to complete a 3-D modelling of the Brauna 3 pipe to provide an initial estimate of the volume of kimberlite comprising the body. Six drill holes were also completed to test the Brauna 8 and Brauna 21 occurrences, to provide an indication of the thickness, geometry and geology of these kimberlite dikes.

In 2007, Vaaldiam announced plans to extract a 4,000 tonne bulk sample from the Brauna 3 pipe in an aggressive development program designed to evaluate the economics of the kimberlite, through the recovery of a parcel of diamonds for valuation purposes. The proposed bulk sampling program will focus on the collection of kimberlite from a series of surface trenches excavated across the width of the pipe. An additional 1,000 tonnes of kimberlite will be excavated from the Brauna dike system. Design and fabrication of a 10 tonne per hour dense media diamond recovery plant are currently underway, and sample extraction is expected to commence during the first quarter of 2008.

With two alluvial mines in production in Brazil, Vaaldiam is South America's largest diamond producer. In addition to the Brauna kimberlite property, Vaaldiam is also developing the 250,000 hectare Pimenta Bueno kimberlite property in the State of Rondonia, and the Catalao kimberlite property in the State of Goias, Brazil. Cash flow generated from Vaaldiam's alluvial mines will be used to directly fund the exploration and development of its Brazilian kimberlite properties.

This release has been reviewed by Jose Ricardo Pisani, Vice President, Exploration who is a qualified person under National Instrument 43-101.

This press release contains certain forward-looking statements. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; changes in project parameters as plans continue to be refined, future prices of resources; possible variations in reserves, grade or recovery rates, accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information

  • Vaaldiam Resources Ltd.
    Ken Johnson
    President and Chief Executive Officer
    (416) 363-6927
    Vaaldiam Resources Ltd.
    Janet Reid
    Manager, Investor Relations
    (416) 363-6927