Vaaldiam Mining Inc.
TSX : VAA

Vaaldiam Mining Inc.

January 20, 2011 07:30 ET

Brauna 3 Kimberlite NI 43-101 Mineral Resource Indicated: 1.3 Million Tonnes and 186,000 Carats Inferred: 4.8 Million Tonnes and 971,000 Carats

TORONTO, ONTARIO--(Marketwire - Jan. 20, 2011) - Vaaldiam Mining Inc. ('Vaaldiam' or the 'Company') (TSX:VAA) is pleased to announce the National Instrument 43-101 compliant mineral resource estimate for the Braúna 3 kimberlite pipe ('B3') at the Braúna Property in Bahia State, Brazil.

The mineral resource estimate includes Indicated Resources to a depth of approximately 40 metres of 0.63 million tonnes at a grade of 24.58 carats per hundred tonnes ('cpht') in the south lobe, and 0.67 million tonnes at a grade of 4.72 cpht in the north lobe of the kimberlite. Inferred Resources to a depth of approximately 200 metres are estimated to contain 3.75 million tonnes at a grade of 24.58 cpht in the south lobe and 1.04 million tonnes at a grade of 4.72 cpht in the north lobe.

An independent Qualified Person ('QP') from ACA Howe International Limited ('Howe') calculated the mineral resource estimate.

The following table summarizes the details of the NI 43-101 mineral resource as prepared by Howe:

Table 1: Mineral Resource Statement for the B3 Kimberlite, North and South Lobes

Resource Category Lobe Dry Tonnes (x1,000) Diluted Grade (cpht) Carats (x1,000) Grade (cpht) Price (US$/carat)
Indicated North 667 4.72 31 4.72 98
Inferred 1,042 4.72 49 4.72
Indicated South 629 24.58 155 24.58 339
Inferred 3,753 24.58 922 24.58
  • Indicated Resource defined from surface to the 235mRL
  • Grade used is the diluted diamond grade obtained from the individual bulk samples.
  • Mineral Resources are not accumulated within an optimized pit shell.
  • Mineral Resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
  • The volume of the North and South Lobes includes internal dilution.
  • The quantity and grade of reported Indicated and Inferred Resources in this estimate are conceptual in nature. There is no guarantee that all or any part of the mineral resource will be converted into a mineral reserve.
  • Due to rounding, figures may not add up to the totals shown.
  • A 1 millimetre bottom cut-off is used for the Mineral Resource.

In the Indicated Category, 83.3% of the carats are derived from the south lobe and 16.7% from the north lobe. In the Inferred Category, 95.0% of the carats are derived from the south lobe and 5.0% of the carats are derived from the north lobe. Diamond values reported are the average estimated sales price of two independent diamond valuations of 1,013.75 carats of rough diamonds recovered from the south lobe and 34.74 carats from the north lobe (as reported on December 2, 2010). The diamond valuation was completed on November 1, 2010 using Antwerp market data.

The mineral resource estimated prepared by Howe includes kimberlite volume, density and tonnage data collected during the bulk sampling program in 2010 which involved the collection of three surface samples totaling 4,909.3 dry tonnes of kimberlite. Samples 1 and 2 were taken from the south lobe and sample 3 from the north lobe. A total of 5,064 diamonds with a total weight of 1,057.39 carats were recovered from the three bulk samples, with 4,904 diamonds totaling 1,021.97 carats from the south lobe and 160 diamonds with a total weight of 35.42 carats from the north lobe. This mineral resource estimate uses a 1.0 millimetre bottom diamond size cut-off and considers all kimberlite to a depth of 200 metres below surface, where drilling has determined that the kimberlite remains open at depth.

Project Overview

The two-hectare B3 pipe is open vertically and laterally. Vaaldiam plans to further explore B3 and the entire property with the objective of increasing the diamond resources. It has commissioned a Preliminary Economic Assessment for B3, which is located in easily accessible terrain just 7 km south of the town of Nordestina. Nordestina has excellent infrastructure, grid power, services and skilled personnel. B3 is one of 22 kimberlite occurrences discovered so far on the property. Vaaldiam has performed exploration work on only five occurrences, including the Braúna 8 ('B8') kimberlite dike situated 5 km north of the B3 pipe. Mini-bulk samples from this 4.5 metre-wide dike produced 170 diamonds weighing 19.37 cts, including a 7.97 carat white octahedron stone, from approximately 46 dry tonnes, inferring a recovered grade of 42 cpht. The B8 occurrence is a vertically oriented kimberlite dike forming a 1,000 metre-long section of the northwest trending dike system. Recent exploration conducted in the vicinity of the B8 dike has confirmed that this dike is linked to the Braúna 21 occurrence. Mini-bulk sampling of the one hectare Braúna 7 pipe, situated 1 km to the east of the B3 pipe, resulted in the recovery of 30 diamonds with a total weight of 3.87 carats from approximately 87 tonnes of kimberlite with an estimated recovered diamond grade of 4.5 cpht.

Vaaldiam commissioned the NI 43-101 mineral resource estimate for the B3 kimberlite pursuant to its obligation under NI 43-101 to prepare and file technical reports and as such, the technical report is the sole responsibility of Vaaldiam.

Mr. Daniel C. Leroux (BSc, P.Geo.) of Howe is the independent QP who supervised the preparation of the mineral resource estimate for the B3 kimberlite. Mr. Leroux has 16 years of direct experience with diamond projects located in Canada, Africa, Europe and South America, including managerial responsibilities for all various exploration stage diamond projects from conceptual grassroots exploration projects to bulk sampling and pre-feasibility studies on advanced diamond projects and has completed mineral resource estimates on both primary and alluvial diamond deposits. Mr. Leroux also has extensive diamond processing experience of various types of process plant technology and recovery plant technology utilized in both primary and alluvial diamond mining operations worldwide.

Ms. Katharine Masun (HBSc, MSc, MSA, P.Geo.) of Vaaldiam and Mr. Douglas Roy (BEng, MASc, P.Eng.) of Howe were closely involved in the mineral resource estimation process for the B3 kimberlite. Ms. Masun has more than 13 years of experience in diamond exploration and kimberlite geology, having been involved in projects located in Canada, India, South America and Africa, from grassroots to advanced stages of exploration and evaluation. Mr. Roy has worked as a mining engineer for more than 10 years, which has included estimation of resources and reserves for precious metals, base metals and industrial minerals and well as participation in pre-feasibility and feasibility studies. Howe consents to the statement of Indicated and Inferred Mineral Resources contained herein.

This release has been reviewed by Katharine Masun P.Geo., who is a qualified person under National Instrument 43-101. For additional information regarding Vaaldiam please visit www.vaaldiam.com.

Certain of the information contained in this news release constitutes 'forward-looking statements' within the meaning of securities laws. Such forward-looking statements, including but not limited to those with respect to the prices of metals and minerals, purchase payments, royalty payments, estimated future production and estimated costs of future production involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any forecast results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual prices of metals and minerals, the actual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the documents of the Company filed from time to time with the Ontario Securities Commission.

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