Diagem Inc.

Diagem Inc.

April 27, 2007 16:01 ET

Diagem's Projects in Brazil

MONTREAL, QUEBEC--(CCNMatthews - April 27, 2007) - In response to a request by regulatory authorities, Diagem Inc. ("Diagem" or the "Company") (TSX VENTURE:DGM) would like to clarify the following about its Brazilian diamond projects.

Certain statements made on the Company's fact sheet posted on the Company's website are being retracted and modified as follows:

Overview of the fact sheet: With reference to the overall alluvial diamond potential of Diagem's extensive portfolio of properties within the Juina District, Diagem has included a range for the volume of material where mineralized gravels could be found representing approximately 10% of the overall areas known to contain alluvial gravels and terraces as follows: "Diagem's properties also have the potential to host 3 to 5 million carats from 8,000,000 to 12,000,000 cubic metres of alluvial and terraced gravel deposits. This potential quantity and grade is conceptual in nature. There has been insufficient exploration to define mineral resources and it is uncertain if further exploration will result in the targets being delineated as a mineral resource."

Property 213: Diagem has removed the table of resources which were described as non-compliant to National Instrument 43-101 and replaced it by the following:

"For the purpose of National Instrument 43-101, Diagem has outlined the Chicoria Block 1 Deposit, an indicated resource of 207,600 cubic metres of gravels grading 0.22 carats per cubic metre for a diamond content of approximately 45,000 carats (Jeremy Bates, May 27, 2005). In addition, a total of 3,801 metres in 1,071 motorized auger drill holes have outlined in excess of 1,000,000 cubic metres of potentially diamondiferous gravels, along the Sorriso River downstream from the Chicoria Block 1 Deposit. The drill holes were done at 50 metre intervals on lines spaced at 100 metre, 200 metre and 400 metre intervals. Additional augering and test pits of these deposits will be conducted to determine grade as soon as the necessary permits are issued and will form part of a National Instrument 43-101 qualified report. Diagem cautions that there is insufficient exploration to define a new mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource."

Property 214: As an addendum to the press release dated April 12, 2007 on the commissioning of its washing pilot plant on the Collier-04 project, Diagem wishes to provide this clarification:

"Under Brazilian legislation, the Company holds a mining concession on Property 214 and has obtained all the mining and environmental permits to extract and market the diamonds recovered from that property. However, the Company is not in commercial production and is completing an exploration program on Property 214 that will result in a resource calculation of a near surface resource at Collier-04 based on the standards of National Instrument 43-101. Only Property 213 has a current mineral resource estimate (Bates 2005) as indicated in the first paragraph of this press release."

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 Canadian exploration mining company focused on the diamondiferous potential of the Juina Diamond Province of Mato Grosso, Brazil where it controls the largest mineral portfolio in the area.

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)
    Nicole Blanchard
    Investor Relations