Delrand Resources Limited

Delrand Resources Limited

September 03, 2008 20:00 ET

BRC DiamondCore Sixth Open Tender Of 1,351.13 Carats Realises US$1,365,736



First production from third trial mining project, De Kalk

Toronto, Canada and Johannesburg, South Africa - September 4, 2008: BRC DiamondCore Ltd. (the "Company") (TSX - BCD; JSE - BCD) is pleased to announce that diamonds totaling 1,351.13 carats from the Company's Silverstreams alluvial, De Kalk alluvial and Paardeberg East kimberlite trial mining projects in South Africa's Northern Cape Province were sold at the Company's sixth tender and realised US$1,365,736.

This compares with US$992,555 realised from the sale of stones totalling 959.46 carats from the Silverstreams and Paardeberg East projects at the Company's previous tender.

The latest tender includes, for the first time, stones produced from the Company's De Kalk alluvial trial mining project. De Kalk is the site of the discovery of the first diamond in South Africa, the 24-carat Eureka, in 1866.

HIGHLIGHTS

Silverstreams alluvial

  • 424.66 carats sold - up 50% on previous tender

  • Average price of US$2,090 per carat achieved

  • 61.21 carat white irregular dodecahedron sold for US$6,836 per carat.

  • 37.30 carat commercial white octahedron sold for US$4,694 per carat.
Paardeberg East kimberlite

  • 906.98 carats sold - up 34% on previous tender

  • average price of US$418 per carat achieved - up 12% on previous tender

  • 16.35 carat white irregular shape sold for US$12,842 per carat
De Kalk alluvial

  • 19.49 carats sold at average price of US$5,079 per carat

  • 8.81 carat intense fancy yellow dodecahedron sold for US$11,063 per carat
Company President Dr. Mike de Wit commented: "We are very pleased to have sold more carats and to have increased turnover at a time when the diamond market has softened somewhat, due both to an expected correction from the very high price levels enjoyed earlier in the year and to cyclical factors such as the European holidays.

"We have achieved good prices for the special stones sold in the latest tender, and are particularly encouraged by the sale for US$11,063 per carat of the 8.81 carat intense fancy yellow dodecahedron recovered at our new De Kalk trial mining project."

The diamond analysis data, including independent diamond valuations and prices received on the open tender conducted by the Company, are being used to underpin the economic metrics of the Silverstreams and Paardeberg East projects.

The services of an independent diamond consultant, Mr. Ramon Ferraris of QTS-Kristal Dinamika, are retained to audit the bulk sampling plants, bulk sampling process and diamond analysis on all three sites. The tender was overseen by Mr. Ferraris and an additional independent diamond consultant to the Company, Mr. Maurice Barker.

SILVERSTREAMS TENDER SALES - MIDDLE ORANGE RIVER ALLUVIAL PROJECT AREA

SITE TOTAL
WEIGHT
(CARATS)
STONES
(NUMBER)
AVG. SIZE
(CARATS PER STONE)
TOTAL
VALUE
(US$)
AVG. VALUE
(US$ PER CARAT)
SILVERSTREAMS 424.66 187 2.27 887,587 2,090

Silverstreams 'special stones' (+10.8 carats in size) totaled 124.97 carats (comprising 29% by weight) and achieved a value of US$655,896 (comprising 74% by value).

Besides the 61.21 and the 37.30 carat stones referred to under "Highlights" above, the Silverstreams 'special stones' included a 13.39 carat white octahedron, which sold for US$2,416 per carat, and a 13.08 carat commercial white octahedron, which sold for US$2,301 per carat.

Other high value stones from Silverstreams were a 10.02 carat light fancy yellow dodecahedron, which sold for US$2,370 per carat, a 9.79 fancy yellow dodecahedron, which sold for US$4,329 per carat, an 8.84 carat white dodecahedron, which sold for US$2,295 per carat, and a 3.47 carat white irregular dodecahedron, which sold for US$2,718 per carat.

The diamond analysis of the product from various trenches on the Silverstreams bulk sampling site was undertaken by the independent consultants on an ongoing basis during 2008. The sample size comprised 187 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. Such deposits tend to be characterized by the recovery of large diamonds.

Specifically, the current size frequency distribution of Silverstreams is plotting to the right of the consolidated graph of the deposit. If production remains in the same geological area there is a high probability of more coarse diamonds of plus 50 carats being found. This opinion is also supported by the current discovery of the 61.21 carat diamond sold in this tender.

PAARDEBERG EAST TENDER SALES - KIMBERLITE BULK SAMPLING PROJECT AREAS PK5, PK1 EAST, PK1 WEST AND PK2 KIMBERLITE BODIES

SITE TOTAL
WEIGHT
(CARATS)
STONES
(NUMBER)
AVG. SIZE
(CARATS PER STONE)
TOTALVALUE
(US$)
AVG. VALUE
(US$ PER CARAT)
PAARDEBERG EAST- PK5 906.98 2,659 0.34 379,185 418

Paardeberg East PK5 "special stones" (+10.8 carats in size) totaled 58.89 carats (comprising 6% by weight) and achieved a value of US$236,817 (comprising 62% by value).

Besides the 16.35 carat stone referred to under "Highlights" above, these included a 30.28 carat industrial, a 12.26 carat commercial white dodecahedron, which sold for US$2,120 per carat, and a 9.19 carat commercial white dodecahedron, which sold for US$2,176 per carat.

The PK5 kimberlite body size frequency distribution plotted for samples in this tender is similar to that plotted for samples in the previous tender, indicating the consistency of the mineralisation of the ore body.

The quality of diamonds produced from the PK5 samples continues to be of high gem content, as indicated by the high average value of US$418 per carat achieved.

The ongoing analysis of the diamonds from the various PK5 samples, representing distinct kimberlite facies, continues to be undertaken by independent consultants.

The size frequency distribution specifically for the PK5 sample is plotting to the right, or in the coarser fraction of the consolidated graph of the PK5 deposit. This is supported by the discovery of the 30.28 carat industrial diamond.

DE KALK TENDER SALES - MIDDLE ORANGE RIVER ALLUVIAL PROJECT AREA

SITE TOTAL
WEIGHT
(CARATS)
STONES
(NUMBER)
AVG. SIZE
(CARATS PER STONE)
TOTAL
VALUE
(US$)
AVG. VALUE
(US$ PER CARAT)
DE KALK 19.49 12 1.62 98,964 5,079

While the De Kalk sample was small, it contained a 8.81 carat intense fancy yellow dodecahedron that sold for US$11,063 per carat. This added weight to the run of mine average price of US$5,079 per carat.

Kimberley Process: Chain of Custody and Diamond Control
Mr. Ferraris, working in conjunction with Company security officials, was mandated to design and develop a chain of custody process and an effective diamond control process for Company diamond production. These processes have been constructed to comply with international best practices and the requirements of the Kimberley Process. Mr. Ferraris is responsible for auditing these processes as well as for providing technical expertise with respect to the diamond product. Mr. Ferraris has 30 years' experience in the rough diamond industry, including working for both De Beers and RTZ.

Qualified Person
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.

Additional information with respect to the Paardeberg East, Silverstreams and De Kalk 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.

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.

Note to editors: Photographs of the special diamonds mentioned in this press release, as well as additional diamonds recovered at Paardeberg East and Silverstreams, can be viewed in the photo gallery section of the Company's website, http://www.brc-diamondcore.com later today.

For further information, please visit our website, www.brc-diamondcore.com, or contact:

In Toronto:
Martin D. Jones, Vice President, Corporate Development, (416) 366-2221 or 1-800-714-7938.


In Johannesburg:
James Duncan, Russell and Associates, +27 11 880-3924


Forward-Looking Statements: 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 recoveries and 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, inflation, 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.