Vaaldiam Resources Ltd.

Vaaldiam Resources Ltd.

January 18, 2007 08:30 ET

Vaaldiam Resources Ltd.: Brauna 3 Kimberlite Sample Yields 58 Commercial Sized Diamonds

TORONTO, ONTARIO--(CCNMatthews - Jan. 18, 2007) - Vaaldiam Resources Ltd. (TSX:VAA) (60% interest) and partner Majescor Resources Inc. (TSX VENTURE:MAJ) (40% interest) report that 58 diamonds with a total weight of 7.74 carats have been recovered from 37.69 dry tonnes of kimberlite extracted from the southern lobe of the 1.7 hectare Brauna 3 pipe, located in the State of Bahia, Brazil. The five largest stones recovered weigh 1.13, 0.56, 0.49, 0.46 and 0.43 carats. The results to date point to a diamond grade of 20.54 cpht for the southern lobe of the Brauna 3 kimberlite pipe.

Ken Johnson, President and Chief Executive Officer of Vaaldiam commented that "this initial sampling of the Brauna 3 pipe is highly encouraging given the small amount of material processed thus far. The complex geology of the pipes is reflected in the sampling results with the grades for the one to two tonne sub-samples ranging from 1.13 cpht to as high as 89.28 cpht. The overall diamond grade of 20.54 cpht for the mini-bulk sample is in line with our expectations and has reinforced our confidence in the project. With the low costs associated with mining in Brazil, and the excellent infrastructure this project possesses, the Brauna 3 kimberlite pipe appears to have excellent economic potential. Additional large-scale sampling is clearly justified."

Of the 58 diamonds recovered from the southern lobe of the Brauna 3 pipe, 12 diamonds with an average weight of 0.43 carats represent 66.7% of the total combined weight of the diamonds recovered. Based on a preliminary assessment, 24% of the diamonds recovered exhibit octahedral crystal shapes, while 47% are either dodecahedral or modified dodecahedral shapes. The remaining diamonds, representing 29% of the parcel are either flat or broken stones. The colour and clarity of the diamonds recovered ranges from clear to clean white to slightly included, off-colour stones. A very small amount (4 stones) of brown stones were recovered in this parcel. All diamonds were recovered on a 0.85 mm square mesh sieve screen. A detailed description of the diamonds will be provided upon the completion of the mini-bulk sampling program on the Brauna property.

Approximately 14 tonnes of kimberlite remains to be processed from the northern lobe of the Brauna 3 pipe. An additional 50 tonnes of kimberlite from the 1.0 hectare Brauna 7 pipe will also be processed and is expected to be completed by early March 2007. Vaaldiam's dense media plant, which is situated just 5 kilometres from the Brauna property, is being utilized by the joint venture to process the mini-bulk samples extracted the pipes, which represent two of the four kimberlite pipes discovered thus far on the Brauna property. The diamond recovery plant consists of a crushing and feed circuit, a 300 kilogram per hour dense media separation module, and a secure diamond recovery circuit. Simulated diamond "tracers" with a density similar to diamond are being utilized to measure the efficiency of the plant and to indicate an average recovery rate of 98.3% based on the samples processed to date.

The following table summarizes the combined diamond recoveries from the processing of mini-bulk samples from two vertical shafts excavated into the southern lobe of the Brauna 3 pipe. These results include the results of the initial 21.5 tonnes of kimberlite processed from the southern lobe of the Brauna 3 pipe which were presented in a joint press release dated December 12, 2006.


Sample Grade
Dry # of Weight Average in Carats
Sample Tonnes Diamonds in Stone per 100
Numbers Processed Recovered Carats Size (ct) Dry Tonnes

Released on December 12, 2006
276-280 1.773 1 0.02 0.02 1.13
281-284 1.667 3 0.53 0.18 31.80
285-287 1.278 - - - -
288-289 0.869 - - - -
290-295 2.568 3 0.17 0.06 6.62
296-300 1.950 - - - -
301-303 1.024 2 0.25 0.13 24.41
304-306 1.079 - - - -
306-309 1.109 3 0.99 0.33 89.28
310-313 1.373 4 0.80 0.20 58.29
314-317 1.341 3 0.12 0.04 8.95
318-322 1.987 11 0.88 0.08 44.28
323-326 1.498 2 0.47 0.24 31.38
327-331 2.012 6 0.55 0.09 27.34

New Results
332-334 1.012 - - - -
370-374 2.219 3 0.06 0.02 2.70
375-379 2.356 2 0.18 0.09 7.64
380-383 1.945 - - - -
384-388 2.205 4 0.16 0.04 7.26
389-392 1.569 2 0.06 0.03 3.82
393-397 1.874 4 1.44 0.36 76.84
398-404 2.985 5 1.06 0.21 35.51
Totals 37.691 58 7.74 0.13 20.54

About Vaaldiam

Vaaldiam is a Canadian-based diamond exploration company primarily involved in the exploration and development of advanced-staged diamond properties in Brazil. Vaaldiam is also focused on the development of its Duas Barras alluvial diamond mine in the State of Minas Gerais, Brazil, where an indicated gravel resource of 1.7 million cubic metres and an inferred resource of approximately 1.0 million cubic metres, containing a combined 430,000 carats has been delineated by bulk sampling and drilling. Mine construction is underway, with production scheduled to commence in Q1-2007. On its Pimenta Bueno diamond property in the State of Rondonia, Brazil, joint venture partner Rio Tinto has committed to the second year of exploration work and has recently completed a drill program which resulted in the discovery of additional kimberlite pipes. Delineation and sampling of the new discoveries has recently been completed, and the results are expected to generate targets for bulk sampling later this year. Vaaldiam has 81.4 million common shares outstanding with approximately C$12.0 million in cash available for the exploration and development of its diamond properties and is debt free.

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