Vaaldiam Resources Ltd.

Vaaldiam Resources Ltd.

October 09, 2007 08:00 ET

Vaaldiam Resources Ltd.: Duas Barras Mine Produces at Annualized Rate of Over 50,000 Carats in September

TORONTO, ONTARIO--(Marketwire - Oct. 9, 2007) - Vaaldiam Resources Ltd. (TSX:VAA) reports that its 100%-owned Duas Barras Mine produced a total of 15,139 diamonds with a total weight of 4,303.78 carats from 22,837 bank cubic metres of gravel during the month of September, the first month of commercial production at the mine, equivalent to an annualized rate of production of 51,645 carats. The average recovered diamond grade during September was 0.19 carats per bank cubic metre, which is 19% higher than the projected resource grade of 0.16 carats per bank cubic metre. The ten largest diamonds recovered during the month weighed 8.68, 6.16, 5.76, 4.99, 4.45, 4.26, 4.19, 4.08, 4.07 and 3.84 carats. Approximately 5.90 kilograms (190 troy ounces) of by-product gold was also produced during the month resulting in a recovered gold grade of 0.27 grams per bank cubic metre, which is 44% higher than the projected resource grade of 0.18 grams of gold per bank cubic metre.

Total production since May 2007, when commissioning of the processing plant started amounts to 34,815 diamonds totalling 9,208.32 carats and 11.74 kilograms (377 troy ounces) of gold from 43,624.75 bank cubic metres of gravel. The following table provides a summary of the diamond production at Duas Barras on a monthly basis since the commencement of operations, including plant commissioning.

Month Ore Diamonds Total Average Recovered Gold
Volume Recovered Weight Stone Diamond Recovered
(bcm) (carats) Size Grade (kilograms)
(cts) (cts/bcm)
May 91.00 313 54.67 0.17 0.60 Not Recovered
June 1,037.46 2,556 447.73 0.18 0.43 Not Recovered
July 4,014.09 6,610 1,240.33 0.19 0.31 0.85
August 15,644.38 10,197 3,161.81 0.31 0.20 4.99
September 22,837.82 15,139 4,303.78 0.28 0.19 5.90
Totals 43,624.75 34,815 9,208.32 0.26 0.21 11.74
(i) Production for May, June & July reflects production using a bottom
screen of 1.4 mm square mesh, which was changed to a 2.0 mm square mesh
bottom screen in late July resulting in a decrease in recovered grade
and a corresponding increase production and in the average stone size
of the diamonds in August and September, which is expected to be reflected
in a higher average sales value for the production generated during the
past two months.

Ken Johnson, President and Chief Executive Officer of Vaaldiam commented that "we are extremely pleased with the production results generated thus far from our new Duas Barras mine. During September, our plant's production rate increased by 46%, which resulted in a 48% increase in the number of diamonds recovered during the month, and a 36% increase in the total carat weight. Gold recovery also showed an 18% increase over our August production, and is proving to be a significant component of the revenue potential of the Duas Barras deposit."

Photographs of the diamonds and gold produced at the Duas Barras mine are available for viewing on the Company's website at

This release has been reviewed by Jose Ricardo Pisani, Vice President, Exploration and Paul Daigle, P.Geo., Senior Project Geologist who are qualified persons 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 & Chief Executive Officer
    (416) 363-6927
    Vaaldiam Resources Ltd.
    Janet Reid
    Manager, Investor Relations
    (416) 363-6927