Brazilian Diamonds Limited
TSX : BDY
AIM : BDY

Brazilian Diamonds Limited

October 17, 2006 06:00 ET

Brazilian Diamonds Limited: Significant Micro-Diamond Counts Received From Large Regis Kimberlite Drilling

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 17, 2006) - Brazilian Diamonds Limited (TSX:BDY)(AIM:BDY) is pleased to announce the important recovery of 129 micro-diamonds in samples from the first hole in a series of deep diamond drill tests of the Regis kimberlite pipe in central Minas Gerais.

This very large kimberlite crater complex (greater than 120 hectares of surface expression) was originally discovered in the mid-1970s and surface exposures near the edge of the body were previously sampled, apparently without the recovery of diamonds. Subsequently, using both acquired and in-house data sources, Brazilian Diamonds identified the Regis kimberlite pipe as one of its exploration priorities based on its indicator mineral geochemical signature, apparent emplacement age and very large size. Using a combination of surface geologic mapping, ground geophysics and indicator mineral geochemistry, the Company was able to identify a central, untested pipe-like zone of approximately 20 hectares in size within the larger Regis kimberlite and began a programme of drill testing in June 2006.

The first two drill holes (RDH01 and RDH02) were completed in August 2006 to depths of 317 metres and 251 metres respectively. Both holes were drilled vertically and entered previously untested primary pyroclastic kimberlite. RDH01 reached the zone beneath the overlying re-sedimented crater complex deposits at 113 m and RDH02 at approximately 88 m. The discovery of a source of primary pyroclastic kimberlite was the primary objective for both of the deep drill holes as this was considered likely to yield a more representative sample of the kimberlite than the re-sedimented material encountered above.

Drill core from RDH01 was split, bagged into 8 kg batches, and shipped to the Saskatchewan Research Council (SRC) in Saskatoon, Saskatchewan for micro-diamond analysis utilizing the caustic fusion process. SRC is a highly reputable independent Canadian laboratory serving the diamond exploration industry and is ISO 17025 certified for its caustic fusion methods.

Based on this testing, micro-diamonds have now been recovered from samples of the pyroclastic kimberlite below 113 metres to the bottom of drill hole RDH01 at 317 metres. The 129 micro-diamonds in these samples were recovered from 348.75 kg of tested core taken from beneath the re-sedimented crater deposits. Cumulative counts from the samples are presented by square mesh screen size in Table 1. The bottom screen size used for all samples was 0.075 mm and two of the stones recovered were greater than 0.5 mm in one measured dimension.

Table 1: All results from Regis Kimberlite 113 metres to 317 metres were sized using square meshed screens.



-----------------------------
0.600 mm
0.425 mm 1
0.300 mm 1
0.212 mm 9 348.75 kg
0.150 mm 19
0.106 mm 37
0.075 mm 62
-----------------------------
total 129
-----------------------------


The most prolific sample interval yielded 92 micro-diamonds from 16.25 kg of kimberlite between 301.7 to 311.5 metres. The largest stone recovered in this interval remained on a 0.300 mm screen. The second most prolific interval yielded 20 micro-diamonds from 48.7 kg at the top of the pyroclastic kimberlite (113.4 to 142.8 m.). The largest stone from any of the samples, which remained on a 0.425 mm screen, was recovered from this interval.

The concentration of almost 90% of the recovered micro-diamonds from two relatively short intervals of the core suggests the possibility of having tested multiple phases with markedly varying diamond contents within the pyroclastic kimberlite unit. This possibility will be further investigated once results are available from the second drill hole at RDH02 which was located 100 m east of RDH01 and nearer to the center of the pipe as determined by ground based geophysics.

Core samples from the second drill hole RDH02 have now been shipped to SRC in Canada for caustic fusion testing. The results from this testing are expected to shed further light on the possibility of higher grade phases within the very large Regis kimberlite pipe. The results from other targets in the region are also expected soon from SRC.

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.

Commenting upon these important results, the Chairman of Brazilian Diamonds, Kenneth P. Judge said, "We believe that the recovery of significant micro-diamond counts from the deep drilling of the Regis kimberlite represents confirmation of the importance of our Regis exploration programme. It further validates of our regional exploration geologic model which is currently being applied to several other important targets within the Company's portfolio in Minas Gerais. Dr. Cookenboo and our highly experienced team of diamond exploration professionals deserve great credit for making what appears to be potentially a significant discovery for the Company and Brazil's diamond sector in general."

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 this licensing process is completed.

The Company has recently acquired the Chapada Diamantina project in Bahia from De Beers which includes the diamondiferous Salvador 1 kimberlite. Plans are under-way to undertake a large bulk sample at Salvador 1 utilising a 15 tonne per hour DMS treatment plant, which is currently located at the Company's Santo Antonio do Bonito property. De Beers retains a right to reacquire up to a 40% in any kimberlite found containing more that 200 carats of diamonds on the Chapada Diamantina properties.

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 almost all of whom are 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 currently 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 organisation 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.

For further information including location maps and other details on the drilling programme mentioned in this news release, please refer to the Company's website www.braziliandiamonds.com.


Contact Information

  • Brazilian Diamonds Limited
    Ken Judge
    Chairman
    + 44 773 300 1002
    or
    Brazilian Diamonds Limited
    Stephen Fabian
    President & CEO
    + 55 31 8814 5111
    or
    Brazilian Diamonds Limited - Investor Relations
    Europe
    + 44 207 590 5503
    or
    Brazilian Diamonds Limited - Investor Relations
    North America
    1-866-689-2599
    Email: info@braziliandiamonds.com
    Website: www.braziliandiamonds.com
    or
    Hanson Westhouse LLP (Nomad to the Company)
    Tim Feather
    + 44 113 246 2610
    or
    Teather & Greenwood: Landsbanki Limited
    (Broker to the Company)
    James Maxwell
    + 44 207 426 9000