Diagem Inc.

Diagem Inc.

December 12, 2007 14:02 ET

Diagem's Chapadao Diamonds Low in Nitrogen or Nitrogen Free: Increases Value-per-Carat Outook

MONTREAL, QUEBEC--(Marketwire - Dec. 12, 2007) - Diagem Inc. (TSX VENTURE:DGE)("Diagem" or "the Company") is pleased to report the results of a diamond study on the Company's Chapadao cluster of kimberlite pipes in the Juina Diamond Province, Mato Grosso, Brazil. The study reveals that a large proportion of the Juina diamonds are low nitrogen or nitrogen-free and therefore are excellent candidates for colour and/clarity improvements through 'High Pressure High Temperature' (HPHT) techniques. This may increase the value per carat of Juina stones, which have traditionally been sold at relatively low values.

Some other valuable practical implications should be noted:

1. There is a possibility that among a great number of 'nitrogen-free' type II-diamonds identified among Juina diamonds, some stones may have a boron structural impurity which forms type IIb diamond variety with very valuable semi-conductive properties. Such diamonds are extremely rare, and their existence may dramatically increase the average price of Juina diamonds. To date, only one pipe in the world, Premier in South Africa, produces semi-conductive diamonds on a regular basis. Type II diamonds are believed to represent 1% to 2% of diamonds worldwide.

2. Secondly, low concentrations of nitrogen and a high grade of nitrogen aggregation in diamonds are empirical criteria for the existence of large diamond crystals in a given primary deposit. In this respect, the Chapadao kimberlitic pipes are quite promising, and one may expect to find large diamond crystals in these pipes. This has already been demonstrated by the valuable Type IIa 9.32 carat pink diamond purchased by the Company earlier this year from the work of an artisanal miner within the Property. (see Gemological Institute of America certificate at www.diagem.com)

Denis Francoeur, Diagem's CEO commented: "These findings are extremely encouraging and merit further investigation as they enhance the viability of a potential diamond operation".

The study was conducted by renowned diamond consultant Dr. Felix Kaminsky and colleagues at the KMD/Institute of Diamonds laboratory in Moscow, Russia and is the final of five comprehensive studies undertaken in 2007 on Diagem's Juina properties. The study was conducted on a series of 1,365 diamonds, the majority of which (1,094) were collected from the Chapadao kimberlite pipes identified to date. The diamonds were studied for their grain size distribution, morphological characteristics, and properties pertaining to their quality as gems (colour, transparency, etc.). Analytical work included the characterization of infrared (IR) spectroscopy, carbon isotopic composition and the study of mineral inclusions for major and trace elements. The trace element compositions in the mineral inclusions were studied using unique equipment at the GEMOC laboratory in the Macquarie University, Sydney, Australia.

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 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 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 Chapadao 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 color (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.


Contact Information

  • Diagem Inc.
    Denis Francoeur
    514-866-6001 ext 265
    Diagem Inc.
    Paul Einarson
    514-866-6001 ext 251
    Diagem Inc.
    Nicole Blanchard
    Investor Relations