Vaaldiam Mining Inc.
TSX : VAA

Vaaldiam Mining Inc.

December 02, 2010 07:00 ET

Vaaldiam Mining Inc.: High Diamond Value of US$338 Per Carat at Brauna

TORONTO, ONTARIO--(Marketwire - Dec. 2, 2010) - Vaaldiam Mining Inc. ('Vaaldiam' or the 'Company') (TSX:VAA) is pleased to report that two independent diamond valuation consultants valued 1,013.75 carats ('cts') of rough diamonds recovered from the south lobe of Vaaldiam's Braúna 3 kimberlite pipe ('B3') at an average value of US$338 per carat. The south lobe bulk sample comprised 4,158 dry tonnes of kimberlite with an average recovered grade of 24.4 cts per hundred tonnes ('cpht') and an average stone size of 0.21 cts per stone. The average global price for rough diamonds is about US$70 per carat. The Braúna property is in Bahia State, Brazil.

The two independent, internationally recognized diamond valuation and consulting companies were Diamond Counsellor International ('DCI') of London, U.K., and International Economic Strategy ('IES') of Antwerp, Belgium. The diamonds were sieved and sized to DTC standards and used November prices of rough diamond sales in Antwerp.

B3 – South Sample Diamond Valuation Results

IES valued the parcel at US$338.71 per carat. It said the price "is very high for a kimberlite and would rank Braúna as one of the best mines in the world". IES suggested a bench mark price of US$330 per carat as its projection of the average sales price of future production from the south lobe. IES said "the overall mixture in colour and quality make this parcel very desirable and highly marketable."

DCI valued the parcel at US338.44 per carat and suggested that a range from US$335 to US$400 per carat could be expected. DCI noted that "this is a good average price for a kimberlite" and that the "south deposit contains a wide range of good quality diamonds. It has a high per carat average price which should prove marketable and profitable."

Project Overview

The two-hectare B3 pipe is located in easily accessible terrain just 7 km south of the town of Nordestina, which provides the project with excellent infrastructure, services and skilled personnel. B3 is one of 22 kimberlite occurrences discovered so far on the property. Vaaldiam has performed exploration work on only five occurrences, including the Braúna 8 ('B8') kimberlite dike situated 5 km north of the B3 pipe. Mini-bulk samples from this 4.5 metre-wide dike produced 170 diamonds weighing 19.37 cts from approximately 46 dry tonnes, inferring a recovered grade of 42 cpht, and included a 7.97 carat white octahedron stone. The B8 occurrence is a vertically oriented kimberlite dike forming a 1,000 metre-long section of the northwest trending dike system. Recent exploration conducted in the vicinity of the B8 dike has confirmed that this dike is linked to the Braúna 21 occurrence. Mini-bulk sampling of the one hectare Braúna 7 pipe, situated 1 km to the east of the B3 pipe, resulted in the recovery of 30 diamonds with a total weight of 3.87 carats from approximately 87 tonnes of kimberlite with an estimated recovered diamond grade of 4.5 cpht.

Robert Jackson, President and CEO said "This is excellent for our shareholders. Investors should note the high stone value, the close proximity of these occurrences to each other and to Nordestina and the potential to add more resources in easily developed terrain."

Vaaldiam holds a 20% interest in the Braúna project. It can increase its interest to 49% by paying its partners an estimated amount of approximately US$6.7 million for costs incurred to complete the bulk sample, which is expected to be completed in Q4 2010. At September 30, 2010 Vaaldiam had $11.2 million of cash.

This release has been reviewed by Katya Masun P.Geo., who is a qualified person under National Instrument 43-101. For additional information regarding Vaaldiam please visit www.vaaldiam.com.

Certain of the information contained in this news release constitutes 'forward-looking statements' within the meaning of securities laws. Such forward-looking statements, including but not limited to those with respect to the prices of metals and minerals, purchase payments, royalty payments, estimated future production and estimated costs of future production involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any forecast results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual prices of metals and minerals, the actual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the documents of the Company filed from time to time with the Ontario Securities Commission.

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