Diagem Inc.
TSX VENTURE : DGE

Diagem Inc.

December 13, 2007 10:09 ET

Diagem Inc.: Update on Collier-04

MONTREAL, QUEBEC--(Marketwire - Dec. 13, 2007) - Diagem Inc. (TSX VENTURE:DGE)("Diagem" or "the Company") is pleased to report that the October results of the large-scale bulk sampling at the Collier-04 development project show better grades and an increased volume of material processed.

In October, a second work shift was added to the pilot concentration plant resulting in a two-fold increase of the material processed. October also recorded diamond grades of 0.47 carats per cubic metre, a 38% increase in grade over the previous months. Diamond recoveries for October, however, are incomplete due to shut downs at the sorting facility as a result of the implementation of technical enhancements and incidental technical difficulties which have been resolved. October results are shown in the table below with results from the previous months.

In October 2007, Diagem engaged the services of US-based diamond consultant Mr. Howard Coopersmith to collaborate and provide guidance with the development of the project. Immediate improvements to the plant set-up resulted in shutdowns at the plant that has impacted processing output level in November and December.



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COLLIER-04 PILOT PLANT PERFORMANCE
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Pilot Plant Nominal Capacity: 22 m(3)/hr Diamonds greater than 1.7 mm
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Feed rate Grade # of Stones
2007 Volume m(3) m(3)/hr Carats ct/m(3)
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March 1,034 11 342 0.33 2,722
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April 1,151 13 368 0.32 2,954
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May 2,349 15 620 0.26 4,875
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June 2,850 18 840 0.29 6,410
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July 3,480 19 1,391 0.40 11,334
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August 3,497 17 1,211 0.35 10,323
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September 3,067 18 1,206 0.39 9,902
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October Partial 5,048 19 2,397 0.47 18,997
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Sub Total 22,476 8,375 0.37 67,517
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Moveable Plants Performance (nominal capacity of 10 m(3)/hr)(i)
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May-August 5,406 9 2,086 0.39 18,693
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Total Diamond Recovery
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Grand Total 27,882 10,461 0.37 86,210
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October Total 6,281 1,233 m(3) remain to be processed
for diamond recovery
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November total 2388 Not processed for diamond recovery yet
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The Company activated its Collier-04 diamond reporting with the Cadastro Nacional do Comercio de Diamantes ("CNCD") in Brazil, which is part of the revised protocol for the certification of the Kimberley Process. This will enable the Company to ship its diamonds to Antwerp for appraisal and marketing.

This press release has been reviewed by Mousseau Tremblay, Ph.D, P. Eng., Diagem's Chairman and a qualified person under National Instrument 43-101

About Diagem

Diagem Inc. is a publicly listed Canadian exploration-stage company focused on primary diamondiferous resources in the Juna Diamond Province of Mato Grosso, Brazil, where it controls a large portfolio of mineral properties. The Company has one advanced development stage project and recently discovered two clusters of kimberlite pipes believed to be the main sources of Juina's historical alluvial diamond production. The historical Juina alluvial diamond production is commonly referred to as "Indian goods" based on the generally lower quality of the diamonds. However, the Chapad?o area is accessible year round and is amenable to open pit mining which translates into low extraction costs. Preliminary diamond grades are also encouraging (see press release dated January 11, 2007). The area is also known for the occurrence of a valuable rare type of diamonds often harbouring a fancy pink colour (see press release dated November 13, 2007).

Forward-looking statements: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS PRESS RELEASE

Contact Information

  • Diagem Inc.
    Denis Francoeur
    CEO
    514-866-6001 ext 265
    or
    Diagem Inc.
    Paul Einarson
    CFO
    514-866-6001 ext 251
    www.diagem.com
    or
    Nicole Blanchard
    Investor Relations
    450-973-6690