Delrand Resources Limited

Delrand Resources Limited

March 03, 2008 19:00 ET

BRC Diamondcore Open Tender Sale Achieves Diamond Values at Paardeberg East Kimberlite and Silverstreams Alluvial Bulk Sampling Sites at US$200 and US$1,446 Per Carat Respectively


Toronto, Canada and Johannesburg, South Africa - March 4, 2008 - BRC DiamondCore Ltd. (the "Company") (TSX - "BCD"; JSE - "BCD") is pleased to announce the results of tender sales conducted on February 29, 2008 to confirm valuations of the diamond product derived from its Paardeberg East kimberlite and Silverstreams alluvial bulk sampling project sites in South Africa.

The highlights of the tender sales included the following:
  • the Silverstreams "run of mine" production is valued at US$1,446 per carat. The "special stones" (+10.8 carats in size) totalled 50.46 carats (comprising 7% by weight) and achieved a total value of US$457,707 (comprising 46% by value);

  • the special stones at Silverstreams constituted a 12.26 Carat stone - D Colour Cleavage, which sold for US$15,175 per carat; a 13.53 Carat stone - White Cleavage, which sold for US$7,960 per carat and a 24.67 Carat stone - Light Yellow Dodecahedron, which sold for US$6,405 per carat;

  • the Paardeberg PK1-East average value was US$204 per carat, which has a high level of confidence due to the sample size; and

  • in total, 4,050.43 carats were sold for approximately US$1.667 million.
SILVERSTREAMS TENDER SALES - MIDDLE ORANGE RIVER ALLUVIAL PROJECT AREA
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                  TOTAL            AVG SIZE     TOTAL   AVG VALUE 
                 WEIGHT    STONES  (CTS PER     VALUE    (US$ PER
    SITE        (CARATS)  (NUMBER)      STN)     (US$)      CARAT)
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SILVERSTREAMS    688.26       455      1.51   995,150       1,446
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The diamond analysis of the product from various trenches on the Silverstreams bulk sampling site was undertaken by independent consultants on an ongoing basis during the final quarter of 2007. The sample size comprised 455 stones and the size frequency distribution of the diamond population recovered from the various sampling trenches indicated a plot typical of a Middle Orange River deposit which is characteristic of the recovery of large diamonds.

The analysis by the independent consultants of the cumulative number of stones in the sample versus the lower critical size plot of the +2 carat (plus two carat) diamonds indicated that the recovery of a stone within the deposit of +40 carats is likely. If a special stone of +40 carats is recovered, the average value of the diamond population recovered at Silverstreams is expected to increase significantly to the US$2,000 per carat range.

As reported previously by the Company's subsidiary, Diamond Core Resources Limited, diamonds recovered at Silverstreams over a three month period by a contractor during 2003 included a 65.8, 50.1, 28.8, 13.17 and 12.13 carat stones, with an average stone size of 3.5 carats, and which sold for an average price in the order of US$2,500 per carat. The above five stones correspond with the size frequency distribution plot of the diamond population which is being independently constructed by the Company.

Using the prices achieved for the Silverstreams product on the open tender, the Silverstreams "run of mine" production is valued at US$1,446 per carat. The "special stones" (+10.8 carats in size) totalled 50.46 carats (comprising 7% by weight) and achieved a total value of US$457,707 (comprising 45% by value).

The special stones constituted a:
  • 12.26 Carat stone - D Colour Cleavage, which sold for US$15,175 per carat.

  • 13.53 Carat stone - White Cleavage, which sold for US$7,960 per carat.

  • 24.67 Carat stone - Light Yellow Dodecahedron, which sold for US$6,405 per carat.
The Silverstreams sampling plant comprises a primary 670 tph trommel screen, magnetic separations to remove banded ironstone, and four 16 foot rotary pan plants. Concentrate from the rotary pans is delivered to a 50 tph Bateman Dense Media Separation ("DMS") unit. The final recovery unit consists of four Flow Sort x-ray machines, three Bateman GB 1000 automatic grease belts, and a "hands-off" final recovery. The +2mm to -32mm fraction is treated through the rotary pan plant and the DMS section; the +32mm to -50mm fraction is delivered separately to an attritioner followed by GB 1000 grease belts.

PAARDEBERG EAST TENDER SALES - KIMBERLITE BULK SAMPLING PROJECT
AREAS PK1 AND PK3 KIMBERLITE BODIES
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                  TOTAL            AVG SIZE     TOTAL   AVG VALUE 
                 WEIGHT    STONES  (CTS PER     VALUE    (US$ PER
    SITE        (CARATS)  (NUMBER)      STN)     (US$)      CARAT)
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PAARDEBERG
 EAST - PK3      276.69     1,330      0.21    42,783         155
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PAARDEBERG
 EAST - 
 PK1 WEST        121.69       550      0.22    26,482         218
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PAARDEBERG
 EAST - 
 PK1 EAST      2,963.94     8,546      0.35   603,559         204
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TOTAL          3,362.32    10,426      0.32   672,824      200.11
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The diamond analysis of the product from various sampling positions on the 2.2ha PK1 kimberlite pipe, representing distinct kimberlite facies, as well as the ongoing sampling operations at PK3, was undertaken by independent consultants on an ongoing basis during the final quarter of 2007.

The PK1 East and PK1 West areas represent two distinct and adjacent lobes within the PK1 kimberlite body. PK3, where sampling operations are continuing, is a separate kimberlite pipe 3.3 ha in size and some five kilometres to the South East of the PK1 pipe.

Although the diamond sample sizes of PK3 and PK1-West were smaller than the PK1-East sample, size frequency distribution curves for the diamond samples and populations on all three sampling areas were plotted. PK3 and PK1-East plotted curves parallel to each other, with PK3 plotting to the left of PK1-East, indicating a deposit containing a diamond population of smaller average stone size.

The size frequency distribution for PK1-West plotted closer to the smaller size fraction of PK3 and to the coarser size fraction present in PK1-East. A detailed analysis of shape, colour, stress and fluorescence of the diamonds present in these kimberlites is being undertaken.

The cumulative number of stones versus lower critical size plot of the +2 carat diamonds of the Paardeberg East deposits suggests that the prospects for recovering the complete fraction of larger diamonds during the bulk sampling process is good.

The PK1-East average value of US$204 per carat has a high level of confidence due to the sample size. The diamond sample size of 121.69 carats for PK1-West was smaller as a result of the lower grades prevalent and some additional stones may be recovered from this area to supplement and confirm the data generated to date. Sampling operations at PK3 are continuing. The independent consultants continue to develop a diamond value model for Paardeberg East and will update the database as additional data becomes available from sales and valuations.

The Paardeberg East geological sampling plant comprises a 50 tph Bateman DMS Module. The front end, with primary crushing (to -55mm), secondary re-crush (to -18mm) and tertiary re-crush (to-13mm) circuits, has a 37 tph capacity. DMS feed is screened at 25 mm. The final recovery consists of two Flow Sort X-Ray Machines, an attritioner, two Bateman GB 800 grease belts and a "hands-off" final recovery.

The diamond analysis data, independent diamond valuations and prices received on the open tender conducted by the Company will be used to underpin the economic metrics for the conceptual study on the PK1 kimberlite pipe at Paardeberg East.

Both the Paardeberg East and Silverstreams bulk sampling plants have been configured for exploration purposes but can be utilized in a production capacity should a decision be taken to do so. Both sampling plants have been equipped with weightometers in order to make accurate measurements of tonnages treated. Both plants have been configured to optimize recoveries from the unique size frequency curves of each deposit.

The services of an independent diamond consultant, Mr. Ramon Ferraris of QTS-Kristal Dinamika of Kimberly, South Africa were retained to audit the bulk sampling plants, bulk sampling process and diamond analysis on the Paardeberg East and Silverstreams sites. The tender was overseen by Mr. Ferraris and an additional independent diamond consultant to the Company, Mr. Maurice Barker.

Commenting on the process, Company President Dr. Mike de Wit said: "The ability of the Company to conduct its own bulk sampling programs to determine grade, size frequency distribution and diamond value is critical to the ongoing exploration process of identifying economically viable diamond deposits. The Paardeberg East plant will be used to sample potentially diamondiferous kimberlite targets of interest to the Company in the region. The Silverstreams bulk sampling/trial mining facility will be applied in identifying promising alluvial opportunities along the Middle Orange River area."

Commenting on the prices received on the tender, Theo Botoulas, Company CEO, said: "The prices achieved at both Paardeberg East and Silverstreams are very encouraging and much higher than expected. These valuations will be used in the conceptual study at the PK1 pipe at Paardeberg East and the evaluation of the Silverstreams project. Our goal is to achieve sustainable sales from economically viable deposits by creating a foundation of sound technical and economic data."

Additional information with respect to the Paardeburg East and Silverstreams projects is contained in the technical report prepared by Venmyn Rand (Pty) Limited, dated July 31, 2007 and entitled "National Instrument 43-101 Technical Report Prepared on the Mineral Assets of Diamond Core Resources Limited in the Northern Cape and Free State Provinces, South Africa." A copy of this report can be obtained from SEDAR at www.sedar.com.

Kimberley Process: Chain of Custody and Diamond Control
Mr. Ferraris, working in conjunction with the Company's security officials, was mandated to design a Chain of Custody process for Company diamond production and develop an effective diamond control process. This process has been constructed to comply with international best practice and the requirements of the Kimberley Process. Mr. Ferraris is responsible for auditing this process and providing technical expertise with regards to the diamond product. He has 30 years experience in the rough diamond industry, including working for both De Beers and RTZ.

Dr. Mike de Wit, President of the Company, is the "qualified person" (as such term is defined in National Instrument 43-101) who supervised the preparation of and is responsible for the technical information in this press release.

BRC DiamondCore Ltd. is an African-focused diamond explorer active in South Africa and the Democratic Republic of the Congo (the "DRC"). Led by a management team with extensive experience in diamond exploration and mine development, the Company has a broad spectrum of projects ranging from advanced stage trial mining operations through grass-roots exploration. The Company's projects comprise both prospective alluvial gravels and primary kimberlite targets. The Company works in a systematic and responsible manner to discover, assess and develop diamond resources for the benefit of its shareholders and local stakeholders.

For further information, please visit our website, www.brc-diamondcore.com, or contact:
In Toronto: Martin D. Jones, Vice President, Corporate Development, at (416) 366-2221 or 1-800-714-7938.
In Johannesburg: James Duncan, Russell & Associates, at 27 11 880-3924.

This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to diamond prices, future diamond sales, future production, exploration results, potential mineralization and the Company's plans with respect to the exploration and development of its properties) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, the possibility that future exploration results will not be consistent with the Company's expectations, changes in equity markets, changes in diamond markets, foreign currency fluctuations, political developments in South Africa or the DRC, changes to regulations affecting the Company's activities, uncertainties relating to the availability and costs of financing needed in the future, delays in obtaining or failure to obtain required project approvals, the uncertainties involved in interpreting geological data and the other risks involved in the diamond exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.