Vaaldiam Resources Ltd.
TSX : VAA

Vaaldiam Resources Ltd.

October 18, 2007 11:14 ET

Vaaldiam Resources Ltd.: Diamond Grade Increases From Brauna 11 Sampling

TORONTO, ONTARIO--(Marketwire - Oct. 18, 2007) - Vaaldiam Resources Ltd. (TSX:VAA) continues to produce significant diamond results from its sampling of the Brauna 11 dike situated on the Company's 100% owned Brauna property in the State of Bahia, Brazil. A second mini-bulk sample has returned 21 diamonds with a total weight of 2.50 carats from 12.16 dry tonnes of kimberlite (13.33 wet tonnes), indicating a recovered grade of 20.56 carats per hundred tonnes (cpht).

This second mini-bulk sample was excavated 200 metres to the northwest of Vaaldiam's initial sample site (reported on October 3, 2007) which produced 19 diamonds with a total weight of 2.81 carats from 16.02 dry tonnes of kimberlite (17.67 wet tonnes), indicating a recovered grade of 17.54 carats per hundred tonnes (cpht). The average stone size of the diamonds recovered from this second mini-bulk sample was 0.12 carats. The five largest stones recovered in the mini-bulk sample weigh 0.87, 0.35, 0.33, 0.17 and 0.13 carats. The diamonds are predominantly white to yellowish-white in colour, with one brown stone (0.35 carats). Roughly half of the diamonds show well-formed crystal shapes, while the balance appear to be fragments due to breakage during processing, or are natural irregular stones. Photos of the diamonds recovered from the mini-bulk sample of Brauna 11 are available for viewing on the Company's website at http://www.vaaldiam.com/mining/brauna-pgallery/index.html.

The Brauna 11 kimberlite occurrence is a 1.5 to 2.5 metre wide, vertically oriented kimberlite dike situated approximately 2 kilometres south of the diamond bearing Brauna 3 and Brauna 7 pipes. To date, the dike has been traced on surface over a distance of approximately 750 metres and it appears to form part of a northwest-trending dike system that has been traced on surface over a distance of approximately 15 kilometres. Vaaldiam's first sample was extracted from a 6 metre deep shaft that allowed the excavation of fresh kimberlite which does not appear to be diluted by soil and calcrete overlying the dike system. The second most recent sample was excavated from an 8 metre deep shaft located 200 metres to the northwest of the initial sample site.

Ken Johnson, President and Chief Executive Officer of Vaaldiam commented that "these latest results from the Brauna 11 dike confirm the lateral continuity of the diamond mineralization within the Brauna 11 dike system. We now plan to delineate the dike system by core drilling, in an effort to expand the resource potential of the Brauna property, and determine the relationship between this diamond bearing dike and the diamond bearing Brauna 3 and Brauna 7 kimberlite pipes situated immediately to the north, which were the focus of our bulk sampling efforts earlier this year."

The mini-bulk sample collected from the Brauna 11 kimberlite 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. 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 was completed as part of an audit of the processing plant efficiency to ensure the highest recovery rate is achieved for the sample processing.

This release has been reviewed by Jose Ricardo Pisani, Vice President, Exploration who is a qualified person under National Instrument 43-101. For additional information regarding Vaaldiam please visit www.vaaldiam.com.

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 & Chief Executive Officer
    (416) 363-6927
    or
    Vaaldiam Resources Ltd.
    Janet Reid
    Manager, Investor Relations
    (416) 363-6927
    Website: www.vaaldiam.com