Diagem Inc.
TSX VENTURE : DGM

Diagem Inc.

April 12, 2007 13:00 ET

Diagem Starts Operation of Diamond Pilot Plant at Collier-04

MONTREAL, QUEBEC--(CCNMatthews - April 12, 2007) - Diagem Inc. (TSX VENTURE:DGM) ("Diagem" or the "Company") is pleased to announce that the construction of its 45 tonne per hour concentration pilot plant at the Company's Collier-04 project in the state of Mato Grosso, Brazil is complete and that commissioning and tuning of the plant is being finalized. All necessary operational permits have been received.

The washing plant will produce heavy mineral concentrates from the weathered diamondiferous material found on the surface of the 17 hectare kimberlite pipe. Diamonds coarser than 1.7 mm will be recovered at the Company's X-Ray separator facility, located near the town of Juina.

The operation is part of the Company's effort to generate early cash flow while progressing with the evaluation of the Collier-04 kimberlite pipe through a program of systematic large-scale surface bulk sampling.

Commissioning of the pilot plant is being conducted with one shift. The Company is considering adding a second shift that would increase the plant's output to its projected annual capacity of 216,000 tonnes.

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. For further information on Diagem, please visit WWW.DIAGEM.COM or contact Denis Francoeur, CEO, at 514-866-6001 (ext 265), Paul Einarson, CFO, at 514-866-6001 (ext 251) or Nicole Blanchard, Investor Relations, at 450-627-6600.

About Diagem

Diagem Inc. is a Canadian exploration mining company focused on diamondiferous resources in the Juina Diamond Province of Mato Grosso, Brazil where it controls the largest mineral portfolio in the area. The Company is committed to bring on stream a new diamondiferous deposit to tap growing demand.

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
    514-866-6001 (ext 265)
    514-866-6193 (FAX)
    dfrancoeur@diagem.com
    or
    Diagem Inc.
    Paul Einarson, CFO
    514-866-6001 (ext 251)
    or
    Investor Relations
    Nicole Blanchard
    450-627-6600