Vaaldiam to Expedite Brauna & Focus on KimberlitesVaaldiam to Expedite Brauna & Focus on Kimberlites
4/26/2011 7:31:10 AM - Market Wire
TORONTO, ONTARIO, Apr 26, 2011 (MARKETWIRE via COMTEX News Network) --
VaaldiamMining Inc. ('Vaaldiam' or 'the Company') (TSX: VAA) is pleased toreport its 2011 development plan for the Brauna 3 Diamond Project('B3'), located at its 5,000 hectare Brauna kimberlite diamond property('Brauna' or 'the Property') in the State of Bahia, Brazil.
Vaaldiamwill spend US$3.9 million, including 12% contingency, on the Propertyin 2011. The strategy is to focus on the kimberlite potential at Brauna,to increase the initial B3 diamond resource and to expedite B3 toproduction as quickly as possible. Vaaldiam has a portfolio ofinvestments that it can sell to finance the program.
Vaaldiam CEORobert Jackson said "We expect a substantial return from this budget. Weneed information for our feasibility study and we want to substantiallyincrease our initial resource. We had excellent results at B3 from oursurface bulk sample in 2010, finding good grades and high qualitydiamonds. Now we will sink a shaft in the centre of B3 to least 80metres to test the vertical grade distribution and density, gatheringenough fresh kimberlite to perform a second bulk sample for ourfeasibility study. We also plan approximately 4,150 metres ofdelineation drilling at B3 and 1,350 metres of drilling with thirteenholes delineating the Brauna 8 - Brauna 21 kimberlite dike system toenhance our understanding of its potential as economic extensions of B3.Our initial resource at B3 only considers the top 200 metres of thedeposit and we know it goes deeper. We are also initiating ourpermitting process".
Separately, Vaaldiam has decided to ceaseoperations at its Duas Barras ('DB') alluvial mine so that it can focusits resources on the greater potential at Brauna. Diamond and goldgrades at DB have been extremely variable in the last six months andhave not met expectations. Rising diamond prices may eventually improvethe mine's economics and make it reliably profitable, but until thenVaaldiam believes its resources are best invested at Brauna. Diamondprices continue to rise because of a long-term structural imbalancebetween rising demand and a lack of new mines.
Contacts: Vaaldiam Mining Inc. Robert Jackson President and Chief Executive Officer rjackson@vaaldiam.com www.vaaldiam.com
SOURCE: Vaaldiam Mining Inc.