Vaaldiam Resources Ltd.

Vaaldiam Resources Ltd.

September 15, 2005 10:38 ET

Rio Tinto Advances Towards Mini-Bulk Sampling Program On Vaaldiam's Pimenta Bueno Property

TORONTO, ONTARIO--(CCNMatthews - Sept. 15, 2005) - Vaaldiam Resources Ltd. (TSX VENTURE:VAA) reports that Rio Tinto Desenvolvimentos Minerais Ltda. ("Rio Tinto") is advancing the delineation drilling program started by Vaaldiam in April 2005 and has completed the delineation of the diamond-bearing Cosmos 1 kimberlite pipe in advance of a mini-bulk sampling program scheduled to start in early October.

A total of 732.4 metres of kimberlite has been intersected in five inclined core holes to a depth of approximately 200 metres. These five core holes were completed to delineate the margins of the diamond-bearing Cosmos 1 pipe. The delineation drilling, coupled with the results of a detailed gravity survey, indicates that the diamond-bearing Cosmos 1 pipe has a surface area of approximately 2.5 hectares. The following table provides a summary of the delineation drilling completed at the Cosmos 1 pipe.

Hole No. Azimuth Inclination Kimberlite (m) Hole
From To Total Length(m)
PBDD1 60 degrees -45 degrees 38.0 263.0 225.0 272.8
PBDD2 300 degrees -45 degrees 93.7 334.0 240.3 342.8
PBDD5 202 degrees -45 degrees 100.9 open 42.4 143.3
PBDD6 170 degrees -45 degrees 13.3 94.0 80.7 112.9
PBDD8 235 degrees -45 degrees 127.0 271.0 144.0 276.4

Rio Tinto is currently mobilizing a large diameter reverse circulation drill rig to complete a mini-bulk sampling program on the Cosmos 1 pipe and additional pipes prioritized for sampling. For the Cosmos 1 pipe, the proposed program will involve the collection of approximately 50 tonnes of kimberlite from five to six holes that will be drilled to test the diamond distribution within different portions of the pipe.

Rio Tinto has also completed three drill holes on the diamond-bearing Pepper 6 kimberlite. All three inclined holes intersected kimberlite in the form of a sill-like body that has been traced over a distance of approximately 250 metres and appears to remain open in all directions. The sill appears to be sub-horizontal exhibiting widths ranging from 3.3 metres to 8.0 metres in drill core. Magnetics suggest that the Pepper 6 kimberlite may be related to the diamond-bearing Pepper 1 pipe, a 2 hectare kimberlite pipe situated 500 metres to the southeast of the Pepper 6 kimberlite.

Rio Tinto presently has three core drills operating on the Pimenta Bueno property. Two drills are currently delineating the diamond-bearing Pepper 3 pipe, where two holes have been completed. The third drill is currently operating at the Pepper 1 pipe where three drill holes have been completed thus far in the program to delineate the pipe in advance of the bulk sampling program. A total of seven pipes will be tested in this drill program, including the diamond-bearing Pepper 4 pipe defined by Vaaldiam in April, and the diamond-bearing Cosmos 3 and 4 pipes where delineation drilling is planned for later this year. Following detailed geological logging by Rio Tinto geologists, samples are being selected and split for fusion and microdiamond analysis. To date, a total of 1.7 tonnes of kimberlite core has been collected for analysis at Rio Tinto's diamond laboratories, and subsequent samples are expected to be shipped to the laboratory on a bi-monthly basis.

In addition to the drilling, a total of 60 alluvial samples have been collected by Rio Tinto as part of an 80-sample reconnaissance exploration program to further define and prioritize the 50 magnetic anomalies targeted for evaluation by Vaaldiam. As well, Rio Tinto has completed approximately 42 line-kilometres of gravity surveying over the Cosmos 1 and Pepper 3 pipes. Max-Min electromagnetic surveys have also been completed over the Cosmos 1, 3 and 4, and Pepper 4 pipes. Both of these geophysical survey techniques have proved to be extremely effective methods to delineate the margins and shape of the kimberlite pipes.

Kenneth Johnson, President of Vaaldiam reports that "we are extremely pleased with the amount of exploration work that Rio Tinto has completed since they elected to exercise their option on the Pimenta Bueno property in June. With three drills operating and over 70 personnel in the field, Rio Tinto is certainly living up to their commitment to Vaaldiam in focusing their efforts and technical expertise on our project."

Vaaldiam is a Canadian based diamond exploration company primarily involved in the exploration and development of the 176,000 hectare Pimenta Bueno diamond property in the state of Rondonia, Brazil. To date, 33 kimberlite pipes have been discovered within the property area. Twenty-four of the 33 known pipes occur in one large cluster and 15 of the 33 pipes have been found to be diamond-bearing on the basis of macro and micro diamond analyses. Rio Tinto exercised an option to acquire a 51% interest in the Pimenta Bueno diamond property. Under the terms of the agreement, Rio Tinto can acquire a 51% interest in the southern two-thirds of the property by spending a total of US$5.0 million on exploration over a three year period. Rio Tinto can also earn a 51% interest in the northern one-third of the Pimenta Bueno property by spending a total of US$7.5 million on exploration over three years.

In addition, Vaaldiam is completing a feasibility study of the Duas Barras alluvial diamond property in the state of Minas Gerais, which includes the processing of a bulk sample and drilling to confirm gravel resources. Vaaldiam also recently acquired a 60% interest in the Brauna diamond property in the state of Bahia, where three diamondiferous kimberlite pipes have been discovered in association with a 15 kilometre long kimberlite fissure system. Exploration is scheduled to commence on the Brauna property in October.

This release has been reviewed by Jose Ricardo Pisani, Vice President, Exploration for Vaaldiam Resources Ltd., who is a qualified person under National Instrument 43-101.

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Vaaldiam Resources Ltd.
    Ken Johnson
    President & CEO
    (416) 363-6927
    Vaaldiam Resources Ltd.
    Janet Reid
    Manager, Investor Relations
    (416) 363-6927