Mato Grosso, Brazil yields 33 carrot DIAMOND
Did anyone notice our neighbour in Brazil just released news and produced significant results from their neighbouring property in the Mato Grosso state, Brazil? Nothing better then having great neighbours!! And with rocks like this 33 carrot stone and the others there welcome anytime…..
------
Vaaldiam's merger target Elkedra sells 2,534 diamonds
2007-10-24 12:55 ET - News Release
Mr. Ken Johnson reports
VAALDIAM RESOURCES LTD.: 33.44 CARAT DIAMOND RECOVERED FROM ELKEDRA'S CHAPADA MINE
Vaaldiam Resources Ltd. has learned that Elkedra Diamonds NL has recovered a 33.44-carat diamond from its 100-per-cent-owned Chapada mine located in Mato Grosso state, Brazil. This diamond is the largest ever recovered at the Chapada mine and was independently valued and sold at $3,000 (U.S.) per carat, or $100,320 (U.S.) in total. The 33.44-carat stone was included in a parcel containing 2,534 diamonds weighing 1,530.70 carats, which included other large special stones weighing 22.77, 16.41 and 14.39 carats, respectively. Collectively, these four stones were sold for $181,849 (U.S.), or $2,091 (U.S.) per carat. The sale price for the entire run-of-mine parcel amounted to $677,641 (U.S.), or $442.70 (U.S.) per carat. The average size of the diamonds in the parcel was 0.60 carat. A photo of the 33.44-carat diamond is available for viewing on Vaaldiam's website.
Elkedra's Chapada mine commenced production in July, 2006, and has since produced 25,697.98 carats of high-quality gem diamonds at an average sales value of $391.07 (U.S.) per carat. To date, 27 diamonds with sizes of between seven to 33 carats and sales values in excess of $2,500 (U.S.) per carat have been recovered, including five diamonds being sold at values in excess of $4,000 (U.S.) per carat. All of Chapada's diamond production is sold under contract to the Leviev Diamond Group, which is the world's leading cutter and polisher of diamonds and a retailer of high-value diamond jewellery through its stores in New York and London.
In July, 2007, Vaaldiam made an offer to acquire Elkedra and its Chapada mine to consolidate Brazil's diamond sector and create a leading South American diamond producer (see Stockwatch news on July 4, 2007). Combined production from the Chapada mine and Vaaldiam's Duas Barras mine in Minas Gerais state, Brazil, is expected to reach 50,000 carats in 2007, increasing to over 80,000 carats of annual production starting in 2008. During the past two months, Vaaldiam's technical team has been working closely with Elkedra's management team at the Chapada mine to reduce operating costs and improve efficiencies. Metco Global of Capetown, South Africa, was recently engaged to conduct a review of the Chapada diamond recovery plant, with a view toward increasing production throughput and diamond recoveries at the plant. In addition, tests are also being conducted to quantify the gold content of the diamond-bearing gravels, to determine whether the recovery of fine-free gold would make a positive contribution to the economics of the Chapada operation. The recovery of fine-free gold at Vaaldiam's Duas Barras mine is an important contributor to cash flow at that operation.
Vaaldiam has offered to acquire all of the outstanding common shares of Elkedra by way of a scheme of arrangement, whereby Vaaldiam will issue 0.52 of a Vaaldiam share for each Elkedra share held by Elkedra shareholders. Elkedra shareholders will vote to approve the transaction at a scheme meeting to be held on Oct. 29, 2007, in Perth, Australia. The board of directors of Elkedra unanimously supports the transaction and has recommended it to shareholders.
This release has been reviewed by Jose Ricardo Pisani, vice-president of exploration, and Paul Daigle, PGeo, senior project geologist, who are qualified persons under National Instrument 43-101.
We seek Safe Harbor.