Delrand Resources Limited

Delrand Resources Limited

May 28, 2008 20:00 ET

BRC Diamondcore Updates Bulk Sampling On PK5 Kimberlite At Paardeberg East Project

Independent valuation indicates a conceptual average diamond value of US$325/ct.


Toronto, Canada and Johannesburg, South Africa -- May 29, 2008: BRC DiamondCore Ltd. (the "Company") (TSX -- BCD; JSE -- BCD) is pleased to provide the following update on bulk sampling being conducted by the Company on the PK5 kimberlite target ("PK5") at the Company's Paardeberg East Project in the Northern Cape Province of South Africa.

Highlights
  • A total of 2,163.08 carats ("ct") have been recovered with a sample grade of 7.64ct per hundred tonnes.
  • An initial independent valuation of the diamonds from samples 1 to 5 has indicated a conceptual average diamond value of US$325/ct.
  • The four largest stones recovered in the combined sampling operations to date include 18.43ct, 11.02ct, 9.97ct and 8.28ct diamonds, all of gem quality.

Initial Bulk Sample Results

While bulk sampling continues to be undertaken, the initial bulk sampling program on PK5 comprised the following bulk samples:

SAMPLE

LOCALITY

VOLUME

No. 1

North-east extremity of the strike, representing a kimberlite blow with a surface
expression of ~50 metres in diameter.

2,121 tonnes

No. 2

South-western extremity of the strike, representing a kimberlite blow with a surface
expression of ~70 metres in diameter.

2,062 tonnes

No. 3

5,420 tonnes

No. 3 (Waste Material)

Sample No. 3 material with high waste content.

922 tonnes

No. 4

Directly below Sample No. 3.

9,907 tonnes

No. 5

Directly below Sample No. 4.

9,608 tonnes


On a macro-scale (bench scale), bulk Samples No. 1 to No. 5 (excluding Sample No. 3 Waste Material) can be considered as being representative of the kimberlite body to 12 metres in depth (see also "Additional Information" below) and the results can be considered indicative of the potential the deposit has on a commercial scale. Sample No. 3 (Waste Material) has been contaminated and diluted by a large proportion of waste rock and is therefore not considered as representative of the kimberlite body.

The table below summarizes the results from the processing of bulk Samples No. 1 to No. 5. Sample No. 3 (Waste Material) is not considered representative of the kimberlite body and is reported separately:

SAMPLE

VOLUME
TREATED

STONES
RECOVERED

AVE.
STONE
SIZE

CARATS

SAMPLE
GRADE

BOTTOM
SCREEN
SIZE

No. 1

2,121 tonnes

238

0.52ct/stn

123.15

5.81cpht (1)

1.25mm

No. 2

2,062 tonnes

349

0.37ct/stn

128.63

6.24cpht

No. 3

5,420 tonnes

1,194

0.38ct/stn

417.73

7.71cpht

No. 4

9,907 tonnes

1,924

0.38ct/stn

727.02

7.99cpht

No. 5

9,608 tonnes

2,197

0.35ct/stn

766.55

7.98cpht

TOTAL/AVE.

28,309 tonnes

5,902

0.38ct/stn

2,163.08

7.64cpht

No. 3 (Waste Material)

922 tonnes

129

0.20ct/stn

25.85

2.80cpht

(1) "cpht" refers to carat per hundred tonnes.

The sample grades set out in the above table are the grades for the respective bulk samples only. Additional bulk sampling, accompanied by an assessment of the volume of the entire kimberlite body (from planned delineation drilling), will be required in order to provide an estimate of the grade of the entire kimberlite body and to provide sufficient geological confidence to define a mineral resource. The above results do, however, confirm the diamondiferous nature of the kimberlite body and has, on this basis, justified further exploration work in order to establish the sub-surface geometry of the kimberlite body.

The four largest stones recovered in the combined sampling operations to date include 18.43 carat ("ct"), 11.02ct, 9.97ct and 8.28ct diamonds, all of gem quality.

Assessment of Diamond Values from Samples 1 to 3

An initial independent valuation of the diamonds from Samples No. 1 to No. 5 by independent diamond consultant, Mr. R. Ferraris, has indicated a conceptual weighted average diamond value of US$325/ct (this assessment only relates to diamonds from Samples No. 1 to No. 5 and not to the entire PK5 deposit). This assessment is in range of the realized average diamond price received for a parcel of 975 stones (337.76cts) from PK5 (including the 9.97ct stone for which a price of US$5,531/ct was realized) which were tendered by the Company, resulting in an average diamond price achieved of US$334.42/ct (see the Company's press release dated April 24, 2008 for additional information regarding this tender of diamonds). This parcel comprised all stones recovered from Samples No. 1 and No. 2 and only 388 diamonds (86.10ct) from Sample No. 3. The remaining Sample No. 3 diamonds, together with the diamonds recovered from Samples No. 4 and No. 5, will be sold at subsequent tenders.

Additional Information

PK5 has been identified by the Company from old workings and tunneling (conducted during the 1900's) and has been interpreted to represent a series of blows (over a strike length of ~250 metres) on a north-east trending kimberlite dyke. Excavations by the Company to date, to a depth of approximately 12 metres, have revealed at least four blow features. These blow features have been bulk sampled, as described above, in order to provide an initial, conceptual indication of the potential economic feasibility of exploiting this kimberlite target in the future. While the results received from the initial bulk sampling program appear positive, there is currently insufficient geological information on the target to define a mineral resource and additional exploration work (including geophysics and delineation drilling) will be required to provide a more accurate estimate of the volume of the target.

The kimberlite excavated from PK5, while appearing highly weathered at surface, can be positively identified as being hypabyssal in nature. Two kimberlite types have been identified:
  • a highly weathered light green hypabyssal kimberlite is the dominant facies type identified; and
  • a slightly more fresh appearing hypabyssal kimberlite in the form of autoliths (kimberlite inclusions within the dominant kimberlite).

Both kimberlite types have been sampled and processed together. However, since the autoliths comprise only a very small proportion of the kimberlitic material, it is not possible to sample this facies type separately and since these autoliths do not represent a discrete geological zone, can be considered as a component of the dominant facies, and the bulk samples taken can be considered representative of the kimberlite body to a depth of 12 metres.

The kimberlite comprises various crustal xenoliths (dominated by shale) and mantle xenoliths (dominated by lherzolite), and these have also been incorporated with the bulk sample.

Sample Treatment

All bulk samples have been batch treated at the Company's Paardeberg East Processing Plant. While this plant has not been accredited in terms of ISO/IEC 17025, the plant is subject to internal protocols and QA/QC procedures which have been audited and approved by independent consultants, Venmyn Rand (Pty) Limited ("Venmyn"), in terms of the plant's adherence to industry standards. These include:
  • surveying of the sample area before sampling by a qualified, independent surveyor;
  • surveying of the sample area after sampling by a qualified, independent surveyor;
  • delivering the sample directly into the plant, or stockpiling the sample material in a sterile, demarcated location;
  • purging the plant between each sample by processing ~20 tonnes of barren material; and
  • conducting regular tracer tests to ensure plant efficiency.

The Paardeberg East Processing Plant comprises:
  • primary crushing (-75mm) using a Telsmith Jaw Crusher;
  • scrubbing;
  • secondary crushing (-25mm) using a 36" Gyrasphere Osborn Cone Crusher;
  • recrushing using a tertiary Oremaster Cone Crusher;
  • concentration by a 50tph Bateman DMS module;
  • screening (+1.25);
  • course and fine diamond recovery by two Flowsort Machines;
  • Bateman Grease Plant (currently by-passed); and
  • final hand sorting of Flowsort concentrate in gloveboxes.

No tailings audits have been conducted.

Strict security controls are in place and the storage and movement of the diamonds are recorded within a diamond register which documents the "chain of custody" and is used to reconcile both the number of diamonds and carats of each parcel produced.

Qualified Person

Neil Mc Kenna, an employee of Venmyn, is the "qualified person" (as such term is defined in National Instrument 43-101) who prepared and is responsible for the technical information in this press release. Mr. Mc Kenna (Pr.Sci. Nat.) recently conducted a site inspection, and has verified the data disclosed in this press release. The verification of the sampling data has been done retrospectively and has been limited to a review and audit of the sampling data, databases and sampling records provided to Mr. Mc Kenna by the Company. Nick Norman (Pr.Sci.Nat), the Company's geologist on site, was responsible for supervising the sampling operations.

Additional information with respect to the Company's Paardeberg East Project is contained in the technical report prepared by Venmyn 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.

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.


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 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.