Diagem Inc.
TSX VENTURE : DGM

Diagem Inc.

August 30, 2007 10:28 ET

Diagem Updates on Bulk-Testing at Collier-04 Kimberlite Pipe in Brazil

MONTREAL, QUEBEC--(Marketwire - Aug. 30, 2007) - Diagem Inc. ("Diagem" or "the Company") (TSX VENTURE:DGM) is pleased to report grade results from the July 2007 large-scale bulk sampling at Collier-04. Diagem has processed an additional of 3,882 cubic metres of material (during the period from July 1(st) to August 17(th)) from the weathered portion of the kimberlite pipe at an average diamond grade of 0.42 carats per cubic metre. Furthermore, plant efficiency has shown constant improvement by producing cleaner concentrates as revealed by the concentration ratio. One reason for the higher grade was that the testing moved to a different mining block. Grade results should be assessed on an overall basis rather than on a sample-by-sample basis.

Up to August 18, 2007, a total of 37,341 commercial size (greater than 1.7 mm) diamonds weighing 4,632 carats have been recovered from the processing of 14,245 cubic metres of material (Table 1). This represents an average diamond grade of 0.33 carats per cubic metre and an average carat weight of 0.12 carats per diamond.

The Company continues to assess the economic feasibility of the Collier-04 project which is dependant upon several variables including a valuation of the diamonds recovered, the economically efficient recovery of diamonds between 1.0 and 1.7 millimetres, and improvements in recovery from sorting facilities including the installation of a grease table to recover non-fluorescent diamonds. A parcel of diamonds from Collier-04 is currently being prepared for valuation.

Diagem's Chief Executive Officer, Denis Francoeur, commented "While sampling results and plant effectiveness at Collier-04 improved, the project is still considered secondary to the Company's primary focus, that being the delineation and the evaluation of the Chapadao cluster and "21 de Abril" cluster of kimberlite pipes".



Table 1: Collier-04 Kimberlite Pipe Diamond Recovery and Grade (up to
August 17(th), 2007)

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Pilot Plant Performance (one shift -- 5 days per week)
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Diamonds greater
Pilot Plant Nominal Capacity: 22 m3/hr than 1.7 mm
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Volume Comparative Grade
2007 m3 m3/hr Concentration Ratio Carats ct/m3 # of Stones
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March 1,034 11 70:1 342 0.33 2,722
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April 1,151 13 95:1 368 0.32 2,954
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May 2,349 15 140:1 620 0.26 4,875
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June 2,850 18 150:1 840 0.29 6,410
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July 3,480 19 163:1 1,391 0.40 11,334
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Sub Total 11,224 3,561 0.32 28,295
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Aug 17 402 257 0.64 1,948
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Moveable Plants Performance
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Movable Plants (MP1+MP2) each with a Nominal
Capacity of 10 m3/hr (i)
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Aug 17 2,619 9 approx. 80:1 814 0.31 7,098
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Total Diamond Recovery
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Grand
Total 14,245 4,632 0.33 37,341
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Diamonds coarser than 1.0 carat make up 7% of the total carat weight. Individual diamonds weighing more than 1.0 carat are shown by weight category in Table 2 below.



Table 2: Individual diamonds weighing more than 1.0 carat

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# Diamonds # Diamonds # Diamonds # Diamonds
Total 1 to 2 2 to 4 4 to 10 above 10
# Diamonds Carats carats carats carats carats
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156 340 119 21 13 3
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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 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 the Juina Province historical alluvial diamond production.

This press release has been reviewed by Denis Francoeur, M.Sc., P.Geo., Diagem's Chief Executive Officer 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.

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
    450 627 6600