Brazilian Diamonds Limited

Brazilian Diamonds Limited

July 10, 2007 04:00 ET

Brazilian Diamonds Limited: Diamonds Recovered in Further Testing of Salvador 1 Kimberlite

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2007) - Brazilian Diamonds Limited (TSX:BDY)(AIM:BDY) ("Brazilian Diamonds" or the "Company") is pleased to announce that replication sampling of the Salvador 1 kimberlite prior to the commencement of bulk sampling operations, has returned significant diamond counts. Preliminary results from the processing of three samples each weighing one tonne have yielded a total of 54 diamonds.

These samples were recently collected from the upper part of the Salvador 1 kimberlite with the intention of replicating results from an initial 580 kg samples collected by the Company in late 2006 which yielded nine diamonds including the largest weighing 0.52 carats. This sampling followed careful removal of the overlying alluvial deposits and the new samples were then recovered at depths of between 0.5 and 1.5 m beneath the surface of the kimberlite.

Three samples were collected from each of two sites under the supervision of the Company's Consulting Geologist, Harrison Cookenboo (Ph.D., P.Geo.) and the Company's Chief Geologist Jefferson Miranda (Ph.D., CREA) and are described as extensively clay altered, grey to brown kimberlite.

The six samples collected from the two sites were taken from progressively greater depths and the first three samples tested, yielded diamonds from all three levels. Results from the remaining 3 replication samples are expected in the next two weeks.

The 54 stones together weigh 0.23 carats and range in size from the bottom screen size of 0.250 mm (52 stones) up to a 1.0 mm mesh screen (2 stones). By screen size, 32 stones remain on a 0.25 mm screen, 10 on the 0.42 mm screen, 10 on the 0.60 mm screen, and 2 on a 1.0 mm screen.

These results compare favourably with much larger tests completed in the 1990s by De Beers. The De Beers tests are reported to have recovered a total of only 84 diamonds from 133.3 tonnes using a 0.5 mm bottom size screen.

The diamonds were recovered using methods typical of indicator mineral recovery, including dis-aggregation screening, heavy liquid separation and visual recovery under an optical microscope. Processing was completed at the Company's Patos de Minas, Brazil, laboratory which is ISO 17025 rated for indicator mineral recovery. Good recovery for diamonds is expected from this processing for the 0.425 mm screen size, with diminished recovery for smaller sizes down to the bottom screen size of 0.250 mm.

The Company is presently preparing for a much larger bulk sample of the Salvador 1 kimberlite which will comprise six pits of approximately 650 tonnes each. Results from the first of the bulk sample pits are expected in the fourth quarter of 2007.

Dr. Harrison Cookenboo (P.Geo.) and Consulting Geologist is the Qualified Person as defined under National Instrument 43-101 responsible for the technical disclosure in this release, and has reviewed and approved the contents of this release.

Editors' Note:

Brazilian Diamonds is a leading Brazil-based exploration company focused on the discovery of kimberlites on its extensive portfolio of properties in the States of Minas Gerais and Bahia, with the goal of becoming a significant producer of diamonds.

The Company is awaiting final approval before commencing the environmental licensing process for development of the Canastra 1 kimberlite body for which mine feasibility work has already been completed and the required Mines Department approvals are already in place. It is intended to bring Canastra 1 into production once the environmental licensing process is completed.

The Company's Salvador diamond project in Bahia includes the diamondiferous Salvador 1 kimberlite. This project was acquired from De Beers which retains a right to reacquire up to 40% of any kimberlite found on the Salvador properties which is confirmed to contain more that 200 carats of diamonds

The Company has a fully operational diamond separation/analysis laboratory at Patos de Minas, Minas Gerais which is strategically located near its properties in the Santo Antonio and Coromandel areas. The Company has a highly experienced team including four geologists located at the Company's facilities in Brazil.

The Company's strategy for non-core activities on its properties is to form joint ventures. A Cdn$1,000,000 feasibility study is underway for a joint venture for the mining of alluvial diamonds on its properties in the Santo Antonio river drainage. The joint venture involves two important Brazilian companies: CODEMIG, the state owned mining development organization and Mineracao Rio Novo Ltda., a wholly owned subsidiary of Andrade Gutierrez SA, one of Brazil's largest civil engineering firms and an existing large scale, dredge based producer of alluvial diamonds.

Contact Information

  • Brazilian Diamonds Limited
    Ken Judge
    + 44 7733 001 002
    Brazilian Diamonds Limited
    Stephen Fabian
    President & CEO
    + 55 31 8814 5111
    Brazilian Diamonds Limited
    Investor Relations
    + 44 207 590 5503
    Brazilian Diamonds Limited
    Investor Relations
    North America
    Hanson Westhouse Limited
    (Nomad to the Company)
    Tim Feather/Matthew Johnson
    + 44 113 246 2610
    Teather & Greenwood Limited
    (Broker to the Company)
    Tom Hulme
    + 44 207 426 9000