Vaaldiam Resources Ltd.
TSX : VAA

Vaaldiam Resources Ltd.

May 13, 2008 12:12 ET

Vaaldiam Expands Size of Candle Lake Kimberlite Pipe

TORONTO, ONTARIO--(Marketwire - May 13, 2008) - Vaaldiam Resources Ltd. ("the Company") (TSX:VAA) reports the completion of the 2008 delineation drilling program on its 100% owned Candle Lake C29/30 kimberlite pipe. The estimated 70 hectare kimberlite is situated in the northern end of the Fort a la Corne Kimberlite Field in central Saskatchewan. A total of 21 coreholes totaling 4,700.65 metres were completed as part of a previous delineation program that started in late 2006 and was designed to evaluate the economic potential of this large kimberlite body.

Commenting on the results of this latest program, Brent Jellicoe, VP Exploration and Evaluation said that "our recent delineation drilling program has successfully expanded the margins of the pipe which should result in an increase in kimberlite tonnage. The core drilling that was completed indicates that the kimberlite beds are thicker than previously thought, and that the kimberlite forms a more continuous tabular body than what was interpreted previously."

A total of 937 kilograms of kimberlite has been submitted for full diamond recovery to a bottom screen size of 0.106 mm using caustic dissolution methods at the Saskatchewan Research Council (SRC) Geoanalytical Lab in Saskatoon. These microdiamond results will supplement the current database of diamond results, which will be further supplemented with macrodiamond recoveries from the 2007 minibulk samples that are expected to be released later this month. Combined, these results will support diamond grade forecasts with a higher degree of confidence. These studies will contribute to an in-house Conceptual Mine Study that will provide information to determine whether to proceed with a 43-101 compliant inferred resource calculation.

The following tables provide a summary of the drilling completed on the C29/30 kimberlite.



Table 1: Summary of 2008 Core Drilling on the South Lobe
of the C29/30 Kimberlite

------------------------------------------------------------
Top of Total
Corehole Kimberlite Kimberlite Kimberlite End of
Identifier Lobe (m) (m) Hole (m)
------------------------------------------------------------
CL-08-005 South 159.31 21.11 201.16
------------------------------------------------------------
CL-08-006 South 164.59 9.45 194.77
------------------------------------------------------------
CL-08-007 South 155.05 36.67 200.86
------------------------------------------------------------
CL-08-008 South 155.05 94.58 249.63
------------------------------------------------------------
CL-08-009 South - - 197.51
------------------------------------------------------------
CL-08-010 South 151.88 116.04 277.67
------------------------------------------------------------
CL-08-011 South 149.05 92.74 252.98
------------------------------------------------------------
CL-08-012 South 152.85 44.97 206.96
------------------------------------------------------------
CL-08-013 South 156.11 78.07 243.84
------------------------------------------------------------
CL-08-014 South 156.17 62.26 219.21
------------------------------------------------------------
CL-08-018 South 153.09 31.27 197.81
------------------------------------------------------------
Total: 587.16 2,442.40
------------------------------------------------------------


Table 2: Summary of 2008 Core Drilling on the North Lobe and
Central Area of the C29/30 Kimberlite

------------------------------------------------------------
Top of Total
Corehole Kimberlite Kimberlite Kimberlite End of
Identifier Lobe (m) (m) Hole (m)
------------------------------------------------------------
CL-08-001 Central 148.74 30.39 188.97
------------------------------------------------------------
CL-08-002 Central 161.70 12.18 180.59
------------------------------------------------------------
CL-08-003 Central 170.40 68.26 242.32
------------------------------------------------------------
CL-08-004 Central - - 240.79
------------------------------------------------------------
CL-08-015 Central 177.65 60.02 246.58
------------------------------------------------------------
CL-08-016 North 162.08 99.74 264.87
------------------------------------------------------------
CL-08-017 North 155.54 54.56 219.15
------------------------------------------------------------
CL-08-019 North 152.07 76.96 231.34
------------------------------------------------------------
CL-08-020 North 154.53 55.38 213.36
------------------------------------------------------------
Cl-08-021 North 153.92 71.33 230.28
------------------------------------------------------------
Total: 528.82 2,258.25
------------------------------------------------------------


About Vaaldiam Resources

With two debt-free alluvial mines in production in Brazil, Vaaldiam is South America's largest diamond producer. Vaaldiam is currently advancing its Brauna kimberlite project towards a feasibility study to be completed later this year, following completion of the 5,000 tonne bulk sampling program currently underway with the construction of a new diamond recovery plant. Vaaldiam is also developing the Pimenta Bueno and Ariquemes kimberlite properties in the State of Rondonia, and the Catalao kimberlite property in the State of Goias, Brazil. Vaaldiam's strategy is to use any cash flow generated from its alluvial mines to directly fund the exploration and development of its Brazilian kimberlite properties. In addition to its diamond projects in Brazil, Vaaldiam is currently completing a drilling and mini-bulk sampling program on its 100% owned Candle Lake kimberlite project in the Fort a la Corne diamond district in the Province of Saskatchewan, Canada.

This release has been reviewed by Brent Jellicoe, P.Geo., Vice President, Exploration and Evaluation who is a qualified person under National Instrument 43-101.

This press release contains certain forward-looking statements. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; changes in project parameters as plans continue to be refined, future prices of resources; possible variations in reserves, grade or recovery rates, accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information

  • Vaaldiam Resources Ltd.
    Ken Johnson
    President & Chief Executive Officer
    (416) 363-6927
    or
    Vaaldiam Resources Ltd.
    Janet Reid
    Manager, Investor Relations
    (416) 363-6927
    Website: www.vaaldiam.com