some diamond newsAug 08, 2007 09:51 ET
Diagem Recovers Large Diamonds from the Collier-04 Kimberlite Pipe, Including a 20.9 Carat Diamond
Prepares to Ramp Up Diamond Recovery at its Pilot Plant
MONTREAL, QUEBEC--(Marketwire - Aug. 8, 2007) - Diagem Inc. (TSX VENTURE:DGM) ("Diagem" or "the Company") is pleased to report the recovery of fifteen large diamonds weighing 20.9, 17.3, 13.6, 8.3, 7.8, 6.7, 6.6, 5.7, 4.8, 4.5, 4.2, 4.1, 4.1, 4.0 and 4.0 carats from its Collier-04 pilot operation. The 20.9 carat stone is the largest stone ever documented at Collier-04. Fourteen of the stones are relatively good quality diamonds except for the 17.3 carat stone which is a boart or poor quality aggregate. These stones and the additional diamonds each weighing in excess of one carat represent 8.4% in carat weight of the diamonds recovered since the start of the commissioning of the pilot plant in March 2007 (Table 1).
A total of 21,980 commercial size ( greater than 1.7 mm) diamonds weighing 2,691 carats have been recovered from the processing of 9,414 cubic metres of material (Table 2). This represents an average diamond grade of 0.29 carats per cubic metre and an average carat weight of 0.12 carats per diamond. An additional 3,709 diamonds weighing 687 carats have been recovered which are not included in the total of 9,414 diamonds referred to in the table below since diamond recovery from the July concentrate is incomplete. The Company has gathered nearly enough carats to have an initial evaluation of its diamonds performed.
"The size and quality of the larger stones improve the Company's outlook for the economic feasibility of the Collier--04 project," stated Denis Francoeur, CEO of Diagem. While these results are very encouraging, our primary focus remains the exploration and development of the Chapadao kimberlite pipes, believed to be the primary source of the profuse historical diamond collection in the Juina District," he added.
Table 1: Individual Diamonds Weighing more than 1 Carat------------------------------------------------------------------------- Total # Diamonds # Diamonds # Diamonds # Diamonds# Diamonds Carats 1 to 2 2 to 4 4 to 10 above 10 carats carats carats carats------------------------------------------------------------------------- 114 267 85 14 12 3-------------------------------------------------------------------------
(i) excludes diamonds recovered from the heavy mineral concentrates produced in July 2007.
Table 2: Collier-04 Kimberlite Pipe Diamond Recovery and Grade-------------------------------------------------------------------------- Pilot Plant Performance (one shift - 5 days per week)-------------------------------------------------------------------------- Pilot Plant Nominal Capacity: 22 m/hr Diamonds greater than than 1.7 mm-------------------------------------------------------------------------- Volume Comparative Grade 2007 m3 m3/hr Concentration Carats ct/m3 # of Stones Ratio -------------------------------------------------------------------------- March 1,034 11 70:1 342 0.33 2,722-------------------------------------------------------------------------- April 1,151 13 95:1 368 0.32 2,954-------------------------------------------------------------------------- May 2,349 15 140:1 620 0.26 4,875-------------------------------------------------------------------------- June 2,850 18 150:1 840 0.29 6,410-------------------------------------------------------------------------- Sub Total 7,384 2,170 0.29 16,961-------------------------------------------------------------------------- Moveable Plant Performance-------------------------------------------------------------------------- Movable Plant Nominal Capacity: 10 m3/hr-------------------------------------------------------------------------- 2,030 9 77:1 572 0.28 5,019-------------------------------------------------------------------------- Total Diamond Recovery-------------------------------------------------------------------------- Grand Total 9,414 2,472 0.29 21,980--------------------------------------------------------------------------
Diamond recoveries since March 2007 were extracted from a surface mineralized block in the northeast portion of the Collier-04 kimberlite pipe. The large scale bulk sampling is now testing a surface mineralized block in the north-northeast portion of the kimberlite pipe.
The Company is training a second shift, which should start in September, to double the production output and to lower the operating cost. This is part of the Company's effort to gather information to be used in the economic feasibility of the project. Dr. Felix Kaminsky, a diamond consultant with a world-wide reputation, has been retained to prepare an independent qualified National Instrument 43-101 report on the Collier-04 kimberlite pipe near-surface resources.
The Collier-04 development block forms part of Property 214, a mining concession, which is 100% owned by Diagem. The property is subject to certain production royalties to Rio Tinto Desenvolvimentos Minerais Ltda (RTDM) and to the surface owner of the land. RTDM also retains a 55% back-in right in the property.
About Diagem
Diagem Inc. is a Canadian exploration mining company focused on diamondiferous resources in the Juina Diamond Province of Mato Grosso, Brazil, where it controls a large portfolio of mineral properties. The Company has one advanced development stage project and recently discovered two clusters of kimberlite pipes believed to be the main sources of the Juina Province historical alluvial diamond production.
This press release has been reviewed by Mousseau Tremblay, Ph.D, P. Eng., Diagem's Chairman and a qualified person under National Instrument 43-101.
Forward-looking statements: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve 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.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.