Diagem Inc.

Diagem Inc.

March 10, 2008 11:13 ET

Diagem Starts Drilling the Chapadao Kimberlites

MONTREAL, QUEBEC--(Marketwire - March 10, 2008) - Diagem Inc. ("Diagem" or "the Company") (TSX VENTURE:DGE) is pleased to report the commencement of a diamond drill program on its Chapadao Kimberlite Cluster in Juina, Brazil. The Chapadao kimberlites are known to be diamondiferous and are believed to be a significant source of the Juina alluvial diamond production.

Denis Francoeur, CEO of Diagem commented: "This is the moment we have been waiting for. Issuance of the bulk test permit, on March 7, 2008, was the only document pending to resume work on the property".

Delineation of the Chapadao kimberlite bodies has started with two diamond drill rigs as part of a first stage 7,500 metre drill program. Two moveable concentration plants with a capacity of processing ten cubic metres per hour are on site and will resume bulk sampling the surface exposures of the kimberlite bodies for diamond grade as soon as a tailings area is ready. Earlier bulk sample results are provided below. The heavy mineral concentrates will be processed at the Company's recently upgraded X-Ray separator facility in Juina. Grade results will be released on a regular basis in the upcoming months. The exploration program will also include a ground magnetic survey and soil sampling and auger drilling for diamond indicator minerals to identify and define additional kimberlite body targets on the remaining portion of the property.

About the Chapadao Discovery

Seven kimberlitic pipe-like bodies forming a tight cluster have already been identified based on the recognition of crater facies kimberlitic material. Independent petrographic, mineralogical and geochemical studies have been conducted on the surface exposures in 2007 and have confirmed Diagem's geological interpretation (press releases of October 10th and November 27th, 2007). Preliminary bulk sampling, conducted in November and December of 2006, indicated diamond grades ranging between 0.28 and 1.26 carats per cubic metre (see press release dated January 11, 2007). A total of 849 diamonds coarser than 1.7 millimetres weighing in total 155 carats were recovered, including a 4.67 carat diamond and eight diamonds ranging between 1.20 and 1.34 carats. Six other kimberlite targets have been identified but need to be confirmed. The Chapadao 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). The Chapadao area is accessible year round and is amenable to open pit mining which translates into low extraction costs.

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 two recently discovered clusters of kimberlite pipes believed significant sources of Juina's historical alluvial diamond production.

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.


Contact Information

  • Diagem Inc.
    Denis Francoeur, CEO
    514-488-4961 (ext. 505)
    Diagem Inc.
    Paul Einarson, CFO
    514-488-4961 (ext. 502)
    Nicole Blanchard
    Investor Relations