Brazilian Diamonds Limited
TSX : BDY
AIM : BDY

Brazilian Diamonds Limited

August 14, 2008 02:00 ET

Brazilian Diamonds Limited: Quarterly Report for the Six Month Period Ended 30 June, 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2008) - During the six months ended 30 June, 2008, Brazilian Diamonds Limited (Brazilian Diamonds or the Company) (TSX:BDY)(AIM:BDY) has continued to focus its exploration activities on exploring kimberlite bodies located on its properties in Brazil while seeking ways to maximize the value from its extensive diamondiferous alluvial gravel inventories located on some of these same properties.

The Company remains encouraged by the publication of the government's inter-departmental deliberations over the finalization of permanent boundaries for the Serra da Canastra National Park, which is located in proximity to the Canastra 1 project, and the progress made with respect to the passage of this legislation. A draft bill (Projeto de Lei No. 1448/2007) has been submitted to the Brazilian Congress which excludes the Company's diamond areas from any new proposed National Park boundary. The Company understands that the Congress has yet to complete its review of the legislation, however it remains encouraged that the bill appears to have support from both the Government and Opposition parties. Once approved, the Company will be able to commence trial mining at its Canastra 1 project.

The Company is in continuing discussions with its joint venture partners regarding plans for the further evaluation of the economic viability of developing a large scale, dredge based mining operation on the Santo Antonio do Bonito alluvials project. The Company is also examining the possibility of establishing other forms of large scale mining operation at this project and decisions on these matters are expected during 2008.

The Company is evaluating the results of drilling and testing of the Salvador 1 kimberlite before deciding on what further activity should be undertaken on this project.

The continuing uncertainties in international capital markets are having an adverse impact on the ability of junior resource exploration companies to finance their activities. Consequently, the Company is assessing opportunities to acquire advanced development or operating resource projects which might provide support for Brazilian Diamonds' continuing exploration activities. Given the strong international demand for certain commodities in the resources sector, the Company is focusing its assessment of new business opportunities on the possible acquisition of advanced projects to produce mineral commodities. Brazilian Diamonds believes such commodities will continue to be in strong demand and will also provide the opportunity to diversify the Company's involvement within the resources sector.

For further information including the full quarterly report, please refer to the Company's website www.braziliandiamonds.com or see below contact information:

Contact Information

  • Brazilian Diamonds Limited
    Ken Judge
    Chairman
    + 44 7733 001 002
    or
    Brazilian Diamonds Limited
    Stephen Fabian
    CEO
    + 55 31 8814 5111
    or
    Brazilian Diamonds Limited
    Jon Bey
    Investor Relations
    +1 604 689 2599
    Website: www.braziliandiamonds.com
    or
    Hanson Westhouse Limited (Nomad to the Company)
    Tim Feather
    + 44 113 246 2610
    or
    Hanson Westhouse Limited (Nomad to the Company)
    Matthew Johnson
    + 44 113 246 2610
    or
    Landsbanki Securities (UK) Limited (Broker to the Company)
    Tom Hulme
    + 44 207 426 9000