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News Release (TSX: VAA)
VAALDIAM REPORTS EXCELLENT DIAMOND RESULTS AT BRÁUNA AND DISCUSSES RESTART AT DUAS BARRAS MINE
TORONTO: October 14, 2010 – Vaaldiam Mining Inc. („Vaaldiam‟ or „the Company‟) (TSX: VAA) is pleased to report results of Sample 2 of the diamond bulk sample program at the Braúna 3 kimberlite pipe („B3‟), situated on its Braúna property in Bahia State, Brazil.
Sample 2 recovered 2,833 commercial-sized diamonds (greater than 1.1 mm square mesh screen) with a total weight of 604 carats and a sample grade of 25.9 carats per hundred tonnes (cpht) from 2,327.5 dry tonnes of kimberlite.
Vaaldiam CEO Robert Jackson said “These are excellent results that improve upon the strong results of Sample 1. The stone size and quality are very good and the project has good exploration potential. B3 is open at depth below 200 metres and laterally to the north-west. It is one of 22 kimberlite occurrences on the property. The resource estimate will be completed during Q4.”
The results for Sample 2 are as follows:
Dry Tonnes
# of Stones
Total Carats
Average Carats / Stone
Dry Grade (cpht)1
2,327.5
2,833
603.81
0.21
25.9
Sample 2 contained 45 diamonds greater than 2 carats, including 21 stones greater than 3 carats, 6 stones greater than 5 carats and 2 stones greater than 10 carats. The average size of the stones recovered from the sample is 0.21 carats per stone and the five largest diamonds recovered are 10.86, 10.55, 9.38, 8.53 and 6.38 carats. Three large diamonds were broken during processing of the kimberlite sample. The total weight of the matched pieces recovered from each of the three broken stones is 18.41 carats (28 pieces), 13.58 carats (5 pieces) and 11.66 carats (2 pieces).
Sample 2 was excavated from a trench on the southern lobe of the pipe, at a depth of approximately 5.5 metres below surface, and 1.5 metres below the level of the first bulk sample, the results of which were reported on September 8, 2010. Combined, Sample 1 and Sample 2 produced 4,786 diamonds with a total weight of 1,014.62 carats from 4,158.2 dry tonnes of kimberlite, resulting in an average recovered grade of 24.4 cpht, maintaining an average stone size of 0.21 carats per stone. The combined results of Sample 1 and Sample 2 are as follows:
Dry Tonnes
# of Stones
Total Carats
Average Carats / Stone
Dry Grade (cpht)1
4,158.2
4,786
1,014.62
0.21
24.4
The colour of 60% of the diamonds recovered from both samples has been classified as White and 40% of the diamonds are classified as Off-White or other colours. The five largest stones are 10.86 carats (White), 10.55 carats (Off-White), 9.38 carats (Dark Grey), 8.53 carats (Grey) and 6.38 carats (White). Seven diamonds are
1 The estimated diamond content, expressed as carats per hundred tonnes (cpht), may not be representative of the overall diamond content of the body due to a number of factors including location and size of sample, and the bottom screen size of the processing plant (1mm). The value was calculated based on kimberlite sample weight, an average moisture content of 11.5% for Sample 1 and 9.7% for Sample 2, and recovered diamond carat weight.
2
yellow, with two stones (3.87 carats and 2.28 carats) classified as fancy yellow. Photos of some of the diamonds recovered as well as a map showing the location of the bulk samples are available for viewing on Vaaldiam‟s website at [Braúna Diamond Gallery].
The bulk sample excavated saprolitic kimberlite from a surface trench to a depth of approximately 7 metres below surface. Strict “Chain of Custody” procedures conforming to industry standards ensured sample integrity. Sample processing and diamond recovery occurred on-site using a 20 tonne per hour crushing and screening circuit which prepared the kimberlite for processing through a modular 10 tonne per hour Dense Media Separator (DMS), which produced a diamond-bearing concentrate ranging in size from -16mm to +1 mm. The concentrates were classified into three sizes and batch fed through a Flowsort™ X-ray diamond recovery unit. To ensure recovery of low luminosity diamonds, the Flowsort™ tailings were processed over a grease table. Flowsort™ and grease table concentrates are processed for final diamond recovery on-site. The final recovery of diamonds included screening, manual sorting and weighing of the diamonds in a “glove box” to ensure security of the sample.
The B3 pipe is located just 7 km south of the city of Nordestina which provides the project with excellent infrastructure, services and skilled personnel. The pipe is one of 22 kimberlite occurrences discovered so far on the 121 sq km property. To date, Vaaldiam has carried out exploration work on only 5 of the 22 kimberlite occurrences, including the Braúna 8 („B8‟) kimberlite dike situated 5 km north of the B3 pipe. Mini-bulk samples extracted from this 4.5 metre-wide dike resulted in the recovery of 170 diamonds weighing 19.37 carats from approximately 46 dry tonnes, inferring a recovered grade of 42 cpht. Included in the diamonds recovered was a 7.97 carat white octahedron stone, the largest recovered from the B8 kimberlite. The second largest diamond recovered from the B8 kimberlite was a 0.92 carat pink diamond, while another pink stone was recovered, which appeared to have been broken during processing. 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.
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. Vaaldiam may or may not exercise this option and may dispose of it to a third party. At June 30, 2010 Vaaldiam had $10.5 million of cash and subsequently added US$3 million from the sale of assets.
The Duas Barras mine is now processing diamond-bearing gravels blended from stockpiles and new run-of-mine material from freshly-stripped areas. Plant availability, plant recovery and operating costs are acceptable. Initial in-pit diamond grades are currently lower than the overall expected grade in the NI 43-101 resource but alluvial operations are noted for greater grade variability than hard-rock mines. The Company is monitoring the recovered grades in the expectation that they will revert to the resource average grade.
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, or contact Robert Jackson, President and Chief Executive Officer at robert.jackson@vaaldiam.com or 416-363-6927.
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.