news release gentlemanRandsburg announces discovery of two diamond-bearing kimberlites at Victory Strike - Dramatically expands size of claim holdings - Sulphides confirmed at Target Zelia447
Wednesday April 5, 11:30 am ET
Trading Symbol: TSX-V:RGZ
TORONTO, April 5 /CNW/ - Randsburg International Gold Corporation (TSX-V:RGZ - News) announced today that it has discovered two diamond-bearing kimberlite pipes during core drilling at its Victory Strike concessions located in central Brazil's Goias State. A total of four kimberlites have been identified to date. The Company has also dramatically increased the size of its landholdings from 312 square kilometres to 526.6 square kilometres. Over 100 metres of primary sulphides are present in another drill hole at another target. Additionally five distinct areas containing diamonds have been confirmed to date on the property.
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Kimberlites are the most important source of primary diamonds in the world. Many kimberlite pipes also produce rich alluvial or eluvial diamond placer deposits.
Randsburg's Brazilian subsidiary, DIADEM MINERACAO LTDA, has a 100% interest in the exploration permits that cover the prospective area, which now covers 526.6 square kilometres (130,124 acres) a 68% increase from 312 square kilometres (77,096 acres). Randsburg owns 85% of the subsidiary. The concessions extend to within 150 metres of the famous diamond producing area of the Verissimo River from which diamonds have been recovered for more than 100 years including the famous Goias diamond, discovered in 1906 and weighing 600 carats, one of the largest diamonds ever discovered.
Diadem now controls concessions covering three major watersheds draining into the Verissimo River, all of which have been confirmed as containing diamonds. There have been numerous diamonds recovered by garimpeiros (local small scale miners) from the alluvial gravels in the streams and rivers, which are the only exit route for the diamonds coming from the Victory Strike area. Garimpeiros are currently working on the Company's concessions.
Randsburg's goal is to locate the primary source or sources of the alluvial and placer diamonds located on or in the vicinity of Victory Strike.
"The results being reported today are the most important milestone to date in the exploration of the Victory Strike project," stated Michael Opara, President and CEO of Randsburg. "We are delighted at the rapid progress being made. The Company applauds the persistence, acumen and hard work of Diadem's General Manager, Ron Turner, Dr. Germundson and their crew."
DRILLING HIGHLIGHTS
As of March 27, 2006 the Company had drilled 16 core holes at Victory Strike for a total of 1917.6 metres. Six aeromagnetic targets have been drilled as well as one target under trench 1 that earlier produced micro and macrodiamonds and one target located by prospecting (Zelia447).
Several of the high priority targets were located in the vicinity of the previously announced seven macrodiamonds recovered by auger drilling in 2005. These seven macrodiamonds with carat weights of 2.08, 1.79, 1.28, 0.95, 0.85, 0.47, and 0.05 totaling 7.46 carats were recovered from 936 kilos of material taken from 39 auger holes drilled between and adjacent to two airborne targets numbered A44 and A45. This area is in the north central portion of the Victory Strike claim block.
These two targets are approximately 800 metres apart and are located on a hill in the northern portion of the Victory Strike concessions. The water from the streams draining the hill flow into the Vai Vem River. A33 is located 1.5 kilometres west of A44. The soils from all of the drill holes reported today was washed and processed at the Diadem facilities in Ipameri.
Drill hole VS-06-09 - Target A44 is confirmed as a diamond-bearing kimberlite pipe. Kimberlite or olivine melilitite is encountered between a depth of 89.1 to 209.8 metres. This is an angled hole at -60 degrees. A sample from 146.7 metres to 149.1 metres was friable and thus able to be processed at the Company's facilities in Ipameri. The approximate weight of this sample was 24 kilograms; however only a portion of it could be broken down and analyzed. One microdiamond was found in this sample. The microdiamond is white and of good quality.
Drill hole VS-06-10 - Target A33 is confirmed as kimberlite by petrographic examination. Kimberlitic material was encountered between 49.1 and 74.0 metres. The hole was drilled at -80 degrees.
Drill hole VS-06-11 - Target Zelia447 - This target is located in the central east portion of the claim block. The hole was drilled into a target located by prospecting. Ilmenite crystals are restricted to the upper part of a nearby dry drainage. Samples from auger drilling and sediment from the drainage returned numerous deep red garnets and microdiamonds. Drill hole sections from 20 metres to 170.1 metres contain small percentages of primary sulphides (pyrite and chalcopyrite). The hole has been cased for planned downhole geophysics and possible deepening.
Drill hole VS-06-13 - Target A47 is confirmed as a diamond-bearing kimberlite pipe. This aeromagnetic target is located in the central portion of the claim block. This vertical hole is located at approximately the centre of aeromagnetic target A47. Blocky and partially crushed bedrock from the interval 25.5 to 30.0 metres was processed at the Company's facilities in Ipameri. The approximate weight of this sample was 50 kilograms; however only a portion of it, about 25 kilograms could be broken down and processed. Numerous microdiamonds, white and of good quality were recovered. There are visible sections of kimberlitic rock from the end of the soil at 15.4 metres to the end of the whole at 110 metres. The hole ends at 110 metres, still in the pipe. Drill hole VS-06-14 was drilled from the same location as VS-06-13 but at a -60 degree angle. The kimberlitic section extends from the soil to 179.4 metres. The soil sample from 3.4 to 8 metres has yielded microdiamonds; however the source cannot be definitively assumed to be from the underlying deep sourced pipe.
Target A47 was given high priority because a dry drainage, located on line between targets A47 and A48 (500 metres from A48) has returned numerous microdiamonds from soil and sediment. The Company has also recovered a 1.5 millimetre macrodiamond here. Several hundred kilograms of material has been processed from this dry drainage. Material from followup auger holes have also contained microdiamonds. Stream sediment samples from drainage systems located adjacent to the A47-A48 area persistently contain microdiamonds. Two holes, VS-06-15 and VS-06-16 were located 30 metres from A48. Gneiss was intersected for the total length of both holes. The target is to be revisited.
Drill hole VS-06-12 - Target A54 - This aeromagnetic target is located in the central portion of the claim block, 2.5 kilometres to the north-east of A47. From examining drill core in the field, Dr. Germundson believes this target contains kimberlite or associated material from 74.75 metres to at least 117.1 metres. To date only one sample from this hole has been subject to petrographic examination.
Additional hard rock intersections from the drill holes listed above and from other completed drill holes will be tested for diamonds. The Company is engaging an independent lab to complete this work. Rock confirmation using petrographic examination will be carried out from these and other drill holes completed to date.
Additional information on the drill holes is given below.
PETROGRAPHIC ROCK INDENTIFICATION OF SELECTED VICTORY DRILL CORES
CONFIRMS KIMBERLITE AND OLIVINE MELILITITE
The Company engaged Glen Sinclair. Ph.D., Professional Engineer of Min Scan Consultants, Toronto, Ontario for petrographic examination of eight drill core samples from Victory Strike. Polished thin sections were prepared for microscopic examination.
Dr. Sinclair's identification of the drill core samples is as follows:
Drill Hole Depth(metres) Rock Type
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VS-06-09(A44) 108.7 Olivine Melilitite
116 Olivine Melilitite
133.7 Diatreme Facies Kimberlite
186.7 Kimberlite
VS-06-10(A33) 54.5 Diatreme Facies Kimberlite
VS-06-11(Zelia447) 95.5 Hornblende Quartz Rock
102 Garnet Sericite Rock
VS-06-12(A54) 82 Altered Lamprophyre
The samples from holes VS-06-09 (target A44) and VS-06-10 (target A33) represent rocks emplaced within a diatreme containing kimberlites and olivine melilitites. Olivine melilitites are rocks, which are similar to kimberlites in many respects but, because of the presence of abundant melilite in their matrices, are not placed in the same petrological group as true kimberlites. However, olivine melilitites, like kimberlites, are known to be diamond-bearing at several localities around the world.
Dr. Sinclair will examine additional rock samples from the sixteen drill holes reported today.
Dr. Sinclair is an internationally recognized kimberlite expert. After many years of experience in all phases of mineral exploration with BP Minerals, Glen Sinclair went into business as an independent petrological and mineralogical consultant in 1989, forming Min Scan Consultants. His clients have included many major and junior mining companies, including BHP, Goldfields, Noranda, De Beers Canada and Phelps Dodge. He has specialized in kimberlite studies but has also been involved in many projects related to gold and base metal exploration. Dr. Sinclair has published more than twenty papers in international geological and mining journals.
Probe analysis by Dr. Sinclair of significant minerals is now underway and will be reported later.
FUTURE PLANS
Drilling is continuing beyond the previously planned 2000 metres. There are numerous high priority targets that remain to be drilled. The Company is still in the process of defining a potential location for its 3.5 tonne/hour diamond processing mini-plant, which is ready for operation. In view of the results reported today and the five distinct areas containing diamonds on the property, the setting up of the plant has been delayed. However the Company expects to make a decision after the current round of drilling and then apply for receipt of necessary government permits. The mini-plant will be able to accelerate exploration and process significantly more material from the numerous diamond bearing targets found to date.
Additional information on the drill program to date:
VS-06-1 - The first drill hole on the Victory Strike property was located to test the geology under trench 1. The soils collected from auger hole tests and the trench produced both macro and microdiamonds. A subtle ground magnetic trend strikes NNE through trench 1. The soil in the upper part of the drill hole contains microdiamonds.
VS-06-2, VS-06-6, VS-06-7 and VS-06-8 - Four shallow holes were drilled into a subtle ground magnetometer target located within the boundaries of aeromagnetic target A45. Target A45 is located up slope and towards the north from usually dry drainages, which contain ilmenite crystals, and microdiamonds.
VS-06-3 and VS-06-5 - The two holes are located within 150 metres of the cluster of four drill holes (2, 6, 7 and 8) and were drilled towards target A45. There is a significant increase in the elevation of the surface of the gneiss between drill holes VS-06-3 and 5 and the cluster of four. What was originally thought to be a relatively featureless surface now shows a somewhat rugged character. Results from the analyses of the soil from the six holes did not yield microdiamonds.
VS-06-4 - This drill hole was located away from target A45 in an area rich in ilmenite crystals. Gneiss was intersected throughout the length of the hole.
VS-06-15 and 16 - Both holes were located 30 metres to the west of target A48. Gneiss was intersected for the total length in both of the holes. The target is to be re-visited.
Victory Strike, Ipameri - DDH Summary (Metric)
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DDH Depth (m) Dip Azimuth General Locale
VS-06-1 101.8 -60 105 degrees T1
VS-06-2 47.2 -90 A45
VS-06-3 91.5 -60 10 degrees A45
VS-06-4 102.2 -60 85 degrees
VS-06-5 96.5 -60 270 degrees A45
VS-06-6 53.5 -90 A45
VS-06-7 76.5 -90 A45
VS-06-8 43.5 -90 A45
VS-06-9 225.4 -60 340 degrees A44
VS-06-10 120.0 -80 30 degrees A33
VS-06-11 170.1 -60 230 degrees Zelia447
VS-06-12 191.0 -60 100 degrees A54
VS-06-13 110.0 -90 A47
VS-06-14 255.6 -60 310 degrees A47
VS-06-15 171.0 -60 340 degrees A48
VS-06-16 61.8 -90 A48
Total 1917.6 metres (16 holes)
PROCESSING
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The following processing method was utilized during recovery of the diamonds referenced in this news release:
The material from the drill holes is placed in core boxes at the drill site; the core boxes are transported from the field to the Company's core facility from which relevant samples are chosen and taken to the Company's laboratory. Friable samples that can be processed in the Company's facilities are separated from rock that cannot be processed by the Company.
The material from other areas is packed in sample bags and taken directly to the laboratory for processing.
The samples are screened using a wet screening machine with square apertures of 8mm, 4mm, 2mm and 1mm screens, all 20 cm. diameter; the (less than)1mm fraction is collected in a bottle located on a spigot at the conical bottom of the screening machine. Each screened fraction is reexamined to look for diamonds or any suspect stones.
The screened fractions as well as the fine material, (less than)1mm from the bottle, are all dried in an oven using aluminum trays. When dry each of the (greater than)8, (greater than)4, (greater than)2 and (greater than)1mm fractions are scrutinized for fluorescent material using a UV light. The fluorescent particles found are examined using a binocular microscope.
The dried (less than)1mm material is passed through an elutriator which separates the material into two fractions. The heavy material consisting of ilmenite, zircons, garnets, perovskite and diamonds is collected in a bottle located on a spigot at the conical bottom of the elutriator while the light fraction overflows and is discarded. The heavy mineral fraction is dried and then all the magnetic material is removed. The magnetic and non-magnetic material is examined for the diamond indicator minerals referenced above.
Dr. Ken Germundson, Ph.D, Professional Geoscientist, is the Company's Qualified Person under the meaning of National Instrument 43-101 for the Victory Strike Project. Dr. Germundson has reviewed this news release and approved its contents.
ABOUT RANDSBURG INTERNATIONAL GOLD CORPORATION
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Randsburg International Gold Corporation is a Canadian exploration company listed on the TSX Venture Exchange (Symbol TSX-V:RGZ). The Company is engaged in exploring for diamonds, titanium, iron, precious and base metals, and platinum group metals (PGMs) in Brazil, Canada and Nevada. The Company has three active exploration projects:
1. Victory Strike diamond project in Brazil - 85% owned
2. Titan Project (iron-titanium-vanadium) in Northern Ontario - 100%
owned
3. Elephant Gold and Silver Project, Nevada - 50% owned
To find out more about Randsburg International Gold Corporation (TSX-V: RGZ - News), visit our website at www.randsburgdiamonds.com
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FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all statements in this news release - including, without limitation, statements regarding forecasts, plans and objectives of Randsburg International Gold Corp. - are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
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or accuracy of this release.
Copyright, 2006 Randsburg International Gold Corporation. This news release can be reproduced and retransmitted in whole, with no changes permitted, and providing it is supplied and made available without charge to the end reader.
For further information
Corporate Inquiries, Michael Opara, President & CEO, Telephone: (416) 486-4078, info@randsburgdiamonds.com
Investor Relations, AGORA Investor Relations,