Brazilian Diamonds Limited

Brazilian Diamonds Limited

March 30, 2005 09:30 ET

Brazilian Diamonds Limited: Tucano 1 Kimberlite Drilling Produces Further Microdiamonds


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BRAZILIAN DIAMONDS LIMITED

TSX, AIM SYMBOL: BDY

MARCH 30, 2005 - 09:30 ET

Brazilian Diamonds Limited: Tucano 1 Kimberlite
Drilling Produces Further Microdiamonds

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2005) - Brazilian
Diamonds Limited (TSX:BDY)(AIM:BDY) -

DRILLING OF TUCANO 1 NOW COMPLETED

Brazilian Diamonds is pleased to report that the delineation and
evaluation of the Tucano 1 kimberlite is on-going. The Company has now
completed the 5th core drill hole (TDH5) in the Tucano 1 anomaly, and is
preparing to begin drill testing two other similar geophysical anomalies
located within 500 m of the body. The 5th drill hole was terminated at
50 m, after exiting kimberlite and entering country rock at 37.7 m. It
is believed that this drill hole defines the eastern edge of the body
which may be between 1.5 and 2 hectares in surface extent.

Brazilian Diamonds has now received the second set of caustic fusion
microdiamond test results for the Tucano 1 pipe from the Saskatchewan
Research Council (SRC), a well-respected laboratory in Saskatchewan,
Canada. Five microdiamonds were recovered from this set of samples,
including four that remained on a 0.106 mm screen, and one that remained
on a 0.150 mm screen (no microdiamonds remained on the smallest screen
used at 0.075 mm).

These five microdiamonds were from a 41.8 kg sample collected between
the 48.8 m and 93.2 m intervals (end of hole in kimberlite) for the
second drill hole (TDH2) within the Tucano 1 pipe. This portion of core
from THD2 is located near the center of the pipe. Two other batches of
core tested in this set of samples (41.55 and 41.65 kg respectively)
were barren. One of these barren samples was collected from the lower
portion of TDH1 (from 135.5 to 190.0 m vertical; with the end of the
hole in kimberlite). This sample interval was interpreted to be a
different phase of kimberlite breccia than the core above, which yielded
significant microdiamond counts in the first set of sample results (see
press release dated February 2005). The second barren sample was
collected from an interval of 3.0 m to 17.9 m in drill hole TDH3,
drilled at a 45 degree angle to the north of the discovery hole.

Dr. Harrison Cookenboo (P.Geo. and Qualified Person by the standards of
Canadian National Instrument 43-101) provided interpretation and
analysis of these results, and approved the contents of this news
release.

Additional core samples from Tucano 1 have been submitted to SRC and
results will be released upon completion of the remaining microdiamond
tests.

Editors' Note:

Brazilian Diamonds is a leading Brazil-based exploration company whose
main purpose is the discovery of kimberlites on its extensive properties
of 230,000 hectares in the State of Minas Gerais, with the goal of
becoming a significant producer of diamonds. The company has a fully
operational diamond analysis laboratory at Patos de Minas, Minas Gerais
which is strategically located near to its properties in the Santo
Antonio and Coromandel areas. The company has a staff of 66 almost all
of who are located at the company's facilities in Brazil and this staff
includes 5 full time geologists. Slightly over 3% of the company's
shares are owned by De Beers Group, which acquired the shares in late
2004 in exchange for its exploration data covering properties owned by
Brazilian Diamonds.

The company's strategy for non-core activities on its properties is to
form joint ventures: it has a gold exploration joint venture with
Hidefield Gold PLC, and a Cdn$800,000 feasibility study is currently
underway for a joint venture for the mining of alluvial diamonds on its
properties in the Santo Antonio river drainage with 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 the country's largest civil engineering
firms.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Brazilian Diamonds Limited
    Investor Relations
    + 44-207-794-1340
    or
    Brazilian Diamonds Limited
    Kenneth P. Judge
    Chairman
    + 44-7733-001-002
    or
    Brazilian Diamonds Limited
    Stephen Fabian
    President & CEO
    + 55-31-8814-5111
    info@braziliandiamonds.com
    www.braziliandiamonds.com
    The Toronto Stock Exchange has neither approved nor disapproved the
    contents of this news release.