Diagem Inc.
TSX VENTURE : DGE

Diagem Inc.

January 24, 2008 10:09 ET

Diagem Inc.: Update on the Collier-04 Diamond Project

MONTREAL, QUEBEC--(Marketwire - Jan. 24, 2008) - Diagem Inc. (TSX VENTURE:DGE) ("Diagem" or "the Company") reports that 412 diamonds weighing more than 1 carat for a total carat weight of 879 carats have been recovered from March to December 31st, 2007 at the Company's Collier-04 development project in the State of Mato Grosso, Brazil. These larger diamonds represent 7.4% of the total carat weight of all diamonds larger than 1.7 mm. Diamonds weighting more than 1 carat are illustrated by carat weight category in the Table 1 below.



Table 1: Collier-04 Diamonds weighing more than 1 carat
(March to December 2007, inclusive)
---------------------------------------------------------------------------
Number of Diamonds Number of Carats
---------------------------------------------------------------------------
Carat
Range 1-2 ct 2-4 ct 4-10 + 10 ct 1-2 ct 2-4 ct 4-10 ct + 10 ct
---------------------------------------------------------------------------
Quantities 297 74 35 6 400 200 188 91
---------------------------------------------------------------------------
Total 412 879
---------------------------------------------------------------------------


Since March, 2007, a total of 98,085 diamonds weighing 11,825 carats have been recovered from the processing of 31,692 cubic metres of in-situ material at Collier-04 (Table 2 below). This represents an average diamond grade of 0.37 carats per cubic metre and an average carat weight of 0.12 carats per diamond for diamonds coarser then 1.7 mm.

Denis Francoeur, CEO of Diagem Inc., stated: "The development of the Collier-04 kimberlite project is conceived as a multistage project designed to process the weathered portion of the kimberlite pipe in its initial stages where little or no stripping is required. We are encouraged with the progress made in 2007. The marketing of the diamonds recovered will be an important component of the feasibility of the project. Positive conclusions will lead to the optimisation of the extraction and recovery processes and to the evaluation of the kimberlite at depth which has been historically documented by more than 100 drill holes".



------------------------------------------------------------------------
------------------------------------------------------------------------
TABLE 2: COLLIER-04 PILOT PLANT PERFORMANCE
------------------------------------------------------------------------
Pilot Plant Nominal Capacity: 22 m3/hr Diamonds greater than 1.7 mm
------------------------------------------------------------------------
2007 Volume m3 Feed rate Carats Grade # of Stones
m3/hr ct/m3
------------------------------------------------------------------------
March 1,034 11 342 0.33 2,722
------------------------------------------------------------------------
April 1,151 13 368 0.32 2,954
------------------------------------------------------------------------
May 2,349 15 620 0.26 4,875
------------------------------------------------------------------------
June 2,850 18 840 0.29 6,410
------------------------------------------------------------------------
July 3,380 19 1,330 0.40 10,780
------------------------------------------------------------------------
August 3,596 17 1,281 0.35 10,870
------------------------------------------------------------------------
September 3,067 18 1,206 0.39 9,902
------------------------------------------------------------------------
October 6,281 19 2,893 0.46 23,422
------------------------------------------------------------------------
November 2,388 15 791 0.33 6,908
------------------------------------------------------------------------
December 208 14 67 0.32 549
------------------------------------------------------------------------
Sub Total 26,304 15 9,738 0.37 79,399
------------------------------------------------------------------------
------------------------------------------------------------------------
Moveable Plants Performance (nominal capacity of 10 m3/hr)(i)
------------------------------------------------------------------------
May-August 5,388 9 2,086 0.39 18,69
------------------------------------------------------------------------
Total Diamond Recovery
------------------------------------------------------------------------
Grand Total 31,692 11,825 0.37 98,085
------------------------------------------------------------------------
------------------------------------------------------------------------


In October, a second work shift was added to the pilot concentration plant which doubled the material processed. In November and December, the plant was idled for maintenance and the implementation of minor modifications to improve its performance. Activities at the plant resumed on January 7th, 2008 following shut down of the plant on December 15th, 2007. The Company is also completing upgrades at its X-Ray Separator facility in Juina, where the Collier-04 concentrate is processed for diamond recovery.

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. The Collier-04 diamonds are being shipped to Antwerp for appraisal and marketing.

This press release has been reviewed by Christophe Le Noan, M.Sc., Geo., Diagem's 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 Juina 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 a significant source of Juina's historical alluvial diamond production. The historical Juina alluvial diamond production is commonly referred to as "Indian goods". However, the area is accessible year-round and the current projects are amenable to open-pit mining which translates into low extraction costs. Preliminary diamond grades of the Chapadao discovery, in particular, are 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
    450-973-6600