Delrand Resources Limited

Delrand Resources Limited

June 02, 2008 20:00 ET

BRC DiamondCore: Third Tender Sale Realises US$2.5 Million

77.34 Carat Silverstreams Diamond Sells for US$904,724;
13.65 Carat Silverstreams Diamond Sells for US$518,180


Toronto, Canada and Johannesburg, South Africa -- June 3, 2008: BRC DiamondCore Ltd. (the "Company") (TSX -- BCD; JSE -- BCD) is pleased to announce the results of its third tender sale for diamonds from its Paardeberg East kimberlite and Silverstreams alluvial trial mining projects in South Africa's Northern Cape Province.

Highlights:
  • 1,909.19 carats in total were sold for US$2,492,715.
  • A 77.34 carat stone recovered from a Silverstreams high terrace channel trench, where bulk sampling has been under way for the last month, was sold for US$904,724 or US$11,698 per carat.
  • The recovery of the 77.34 carat stone reinforces the size frequency distribution plots of the diamond population recorded by the Company for the various sampling trenches; indicates a plot typical of a Middle Orange deposit; and confirms the presence of large diamonds in the distribution.
  • A 13.65 carat stone recovered at Silverstreams sold for US$518,180 or US$37,962 per carat.
  • The tender demonstrated continued strong average value (US$390.90 per carat) for the product from the PK5 kimberlite at Paardeberg East, where further geophysical work and delineation drilling is being undertaken.
  • As a result of the exploration results at Silverstreams, the metallurgical capacity will be increased by 50%, to deliver an expected proportional increase in production.
  • A 57% increase to US$2,511.19 per carat has been realized in the average value for all diamond product at Silverstreams since inception of sampling.
  • The average value for all diamonds recovered from Paardeberg East PK 5 since inception of sampling is US$381.06 per carat.
The diamond analysis data, independent diamond valuations and price received for the tender will be used to underpin the economic metrics of both 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 of both projects. The tender diamonds were prepared and overseen by Mr. Ferraris and an additional independent technical diamond consultant to the Company, Mr Maurice Barker.

Commenting on the prices received on the third tender, Company CEO Theo Botoulas said: "The average prices achieved per carat for the entire run of mine production for both Paardeberg East and Silverstreams of US$390.90 per carat and US$6,065.89 per carat respectively are most encouraging.

"As a result of increased geological and grade confidence delivered by the systematic sampling program at Silverstreams, as well as access to adequate Eskom power, we will implement the first phase of doubling capacity. The capacity of the rotary pan plant section will be increased by 50% with the addition of two 16 ft rotary pans. Production is expected to increase proportionally as the Silverstreams project gears up."

Photographs of diamonds referred to in this press release, and additional diamonds recovered at Paardeberg East and Silverstreams, can be viewed on the Company's website at http://www.brc-diamondcore.com.

SILVERSTREAMS TENDER SALES -- MIDDLE ORANGE RIVER ALLUVIAL PROJECT AREA

SITE

TOTAL WEIGHT
(CARATS)

STONES
(NUMBER)

AVG. SIZE
(CTS. PER STN.)

TOTAL VALUE
(US$)

AVG. VALUE
(US$ PER CARAT)

SILVERSTREAMS

307.74

102

3.02

1,866,716

6,065.89



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. The sample size comprised 102 stones. The size frequency distribution of the diamond population recovered from the various sampling trenches indicates a plot typical of a Middle Orange River deposit, which is characterized by the recovery of large diamonds.

In previous reports, the independent consultants predicted the recovery of a 40+ carat stone, based on the size frequency interval analysis and size forecasting. The Company is pleased to announce the recovery of a 77.34 carat unbroken stone. Accordingly, there has been a significant increase in the average dollar per carat value of the Silverstreams deposit to US$2,511.19 per carat.

Using the prices achieved for the Silverstreams product on the open tender, the Silverstreams run of mine production for the tender is valued at US$6,065.89 per carat. Of note, the 77.34 carat stone equals 25.1% of the weight and 48.5% of the value of the parcel. This stone sold for US$11,698 per carat.

Other special stones (+10.8 cts) included:
  • 13.65 carat - D Colour dodecahedron, which sold for US$37,962 per carat.
  • 11.96 carat -- Fancy Yellow dodecahedron, which sold for US$11,202 per carat.
  • 16.56 carat -- Off White octahedron/dodecahedron, which sold for US$7,059 per carat.
The Company confirms that the full run of mine product is represented in this tender and no diamonds were removed for beneficiation or other purposes.

PAARDEBERG EAST TENDER SALES -- KIMBERLITE BULK SAMPLING PROJECT AREA PK5 KIMBERLITE BODY

SITE

TOTAL WEIGHT
(CARATS)

STONES
(NUMBER)

AVG. SIZE
(CTS. PER STN.)

TOTAL VALUE
(US$)

AVG. VALUE
(US$ PER CARAT)

PAARDEBERG EAST -- PK5

1,601.45

4,302

0.37

625,999

390.90



The ongoing diamond analysis of the various PK5 samples, representing distinct kimberlite facies, continued to be undertaken by independent consultants. The PK5 size frequency distribution for the samples in this tender plotted is similar to the last samples, indicating the continuous nature of the ore body. However, the average stone size has increased slightly to 0.37 carats per stone from 0.35 carats per stone for previous samples. The forecasting plots indicate that PK5 has the potential of recovering special stones (+10.8 cts). This has been reinforced by the recovery of an 18.36 carat stone. The stone sold for US$7,307 per carat.

The quality of diamonds produced from the PK5 samples has been exceptional, as indicated by the high average value achieved of US$390.90 per carat. Besides the 18.36 carat stone, three other high value stones greater than 5 carats were sold:
  • 9.11 carat -- White irregular dodecahedron, which sold for US$11,618 per carat.
  • 7.15 -- Light Yellow dodecahedron, which sold for US$3,349 per carat.
  • 5.34 carat -- White dodecahedron, which sold for US$2,505 per carat.
The Company confirms that the full run of mine product is represented in this tender and no diamonds were removed for beneficiation or other purposes.

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. This process has been constructed in a manner that complies with international best practices and the requirements of the Kimberley Process. Mr. Ferraris is responsible for auditing this process as well as for providing technical expertise with regards to the diamond product. Mr. Ferraris has 30 years' experience in the rough diamond industry, including working for both De Beers and RTZ.

The Company maintains an inventory of diamond product from its operations which are sold as the diamond analysis per sample is concluded. Technical data with respect to the diamond populations per deposit has been recorded and analysed by independent diamond consultants.

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.

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.

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 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, 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.