Vaaldiam Resources Ltd.
TSX VENTURE : VAA

Vaaldiam Resources Ltd.

March 20, 2006 15:37 ET

Vaaldiam Expands Size Of Brauna 3 Pipe

TORONTO, ONTARIO--(CCNMatthews - March 20, 2006) - Vaaldiam Resources Ltd. (TSX VENTURE:VAA) (60% interest) and partner Majescor Resources Inc. (TSX VENTURE:MAJ) (40% interest) report that delineation drilling has resulted in the expansion of the size of the Brauna 3 kimberlite, one of four pipes discovered on the Brauna diamond property, situated in the state of Bahia, northeastern Brazil. Fifteen core holes have been completed at the Brauna 3 pipe, totaling 1,768 metres of core, of which 1,083 metres are kimberlite. The delineation drilling completed thus far indicates that Brauna 3 is an elongated body which stretches over a strike length of 325 metres and maintains widths of 80 to 110 metres. The pipe covers a surface area of approximately 1.65 hectares. The pipe is exposed at surface under a 3.0 metre calcrete cover at both the northern ("the north lobe") and southern ("the south lobe") ends of the deposit. The central portion of the pipe is buried under a 12 metre thick calcrete cap. Initially Vaaldiam's drilling focused on the north and south lobes, with 6 holes and 7 holes being completed respectively in each of these areas. Two drill holes have been completed so far in the central portion of the body. To date the pipe has been tested by drilling only to a depth of 200 metres.

Geological logging of the drill core indicates that the Brauna 3 pipe is a macrocrystic micaceous hypabyssal kimberlite. Two angled drill holes have been completed across the entire width of the pipe, with drill hole BRA03-08 testing the northern lobe, and BRA03-13 testing the southern lobe. Hole BRA03-08 was drilled on a 46o incline from the south to the north across the northern lobe of the pipe, and intersected the southwestern margin of the pipe at a down-hole depth of 34 metres. The hole intersected approximately 113 metres of kimberlite, before exiting the northern margin of the pipe at a down-hole depth of 146 metres. Hole BRA03-13 was drilled on a 45o incline in a westerly direction, and intersected the eastern margin of the pipe at a down-hole depth of 22 metres. A total of 107 metres of kimberlite was intersected in this hole, before exiting the western margin of the pipe at a down-hole depth of 128 metres. A plan map and summary table showing the locations of all 15 drill holes and a description of the geology intersected in each hole is available on Vaaldiam's website at www.vaaldiam.com/pagefind.php?id=39.

The Brauna 3 pipe was originally discovered in 1992 by De Beers Brasil Ltda. during a reconnaissance exploration program in the Itapicuru River area. Surface exploration by De Beers suggested that the Brauna 3 pipe had a surface area of 1.34 hectares. The current drilling campaign by Vaaldiam and Majescor on the Brauna 3 pipe now indicates that the kimberlite has a surface area of approximately 1.65 hectares, representing a 23% increase over the original estimate by De Beers.

The Brauna 3 pipe is also reported to have produced diamonds in the past. During 2000, a local farmer started mining activities at the Brauna 3 pipe. Detailed production records from the artisanal mining operation, which were obtained by Vaaldiam's geologists, indicate that during 2000 and 2001, a total of 250 diamonds with a total weight of 464.58 carats were reportedly recovered from colluvial gravels and soils excavated immediately downslope from, and within 150 metres of the Brauna 3 kimberlite. The individual diamonds reportedly ranged in size from 0.20 carats to 17 carats, with 46% of stones falling in the one to three carat range. Analysis of the production records indicates an average stone size of 1.85 carats, however Vaaldiam's geologists assume there were significant losses of smaller stones during processing, which may have biased the calculation of the average size of the diamonds reportedly produced from Brauna 3. It is important to note that, since these reported results were achieved prior to Vaaldiam's and Majescor's acquisition of the Brauna project, they cannot be verified. Vaaldiam expects to commence a mini-bulk sampling program during Q3-2006 to determine the diamond content of the pipes and dikes on the Brauna property.

The Brauna project comprises three exploration concessions which now encompass four known kimberlite pipes, or blows, namely Brauna 3, 4, 7 and 16. These pipes or blows are associated with a system of kimberlite dykes that have been traced over a distance of approximately 17 kilometres. According to historical records provided by De Beers, the pipes range in area from 0.50 hectares at the Brauna 7 pipe, to 2.50 hectares at the Brauna 4 pipe. Surface exposures of kimberlite within the dyke or fissure systems indicate widths ranging from 0.7 metres at the Brauna 6 occurrence, to 5 metres at the Brauna 8 occurrence.

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

For additional information regarding Vaaldiam please visit www.vaaldiam.com.

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

Contact Information

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