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This little diamond company could become profitable in 09 if they don't watch out!
Vaaldiam's Chapada diamonds fetch $800 (U.S.) per carat
2008-07-14 14:42 ET - News Release
Mr. Ken Johnson reports
VAALDIAM RESOURCES LTD.: RECORD DIAMOND PRICE OF $800 PER CARAT FOR CHAPADA PRODUCTION
Vaaldiam Resources Ltd.'s latest diamond sale from its 100-per-cent-owned Chapada diamond mine, in the state of Mato Grosso, Brazil, achieved a record price of $800 (U.S.) per carat. A total of 1,967 diamonds weighing 1,116 carats, an average of 0.57 carat per stone, were sold for gross proceeds of $892,708 (U.S.).
Included in the parcel were five stones greater than 10 carats in weight, which were sold for a total of $510,039 (U.S.), or $5,791 (U.S.) per carat. The largest diamond in the parcel was a 30.96-carat diamond, which was sold for $230,033 (U.S.), or $7,430 per carat. Photos of the diamond are available for viewing on the company's website.
SPECIAL STONES GREATER THAN 10 CARATSStone weight Gross sales value US$ Value per carat US$30.96 carats $230,033 $7,430/carat19.31 carats $166,163 $8,605/carat12.99 carats $34,424 $2,650/carat12.89 carats $25,780 $2,000/carat11.92 carats $53,640 $4,500/carat ------- -----Total 88.07 carats $510,039 $5,791/carat ------- -----
Ken Johnson, chairman and chief executive officer of Vaaldiam, commented that: "We are extremely pleased with the high sale values received for the most recent diamond production from our Chapada mine. The sales value per carat for this parcel is 99 per cent higher than the average sales value per carat received over the prior 12 months, and reflects strong market demand and high prices for the large, high-quality diamonds recovered from the Chapada deposit."
Including the latest sale, over the past 12 months of operation, the Chapada mine has sold a total of 13,294 carats of diamonds for total gross proceeds of $5,783,040 (U.S.) or an average value of $435 (U.S.) per carat.
Operational improvements under way at Chapada
Vaaldiam is currently implementing a series of operational changes at its Chapada mine to lower operating costs. The company recently terminated its contract with AGN Transportes Ltda., a contract mining company, in order to operate its own fleet of hauling trucks and excavators. Operating its own mining and trucking equipment is expected to significantly reduce total operating costs. In addition to changing to its own mining fleet, Vaaldiam intends to install a mobile, in-pit, screening plant, which will allow the washing and screening of the run-of-mine ore at the mining face, thereby reducing the amount of material required to be transported to and from the Chapada recovery plant by approximately 65 per cent. Processing operations at Chapada have been temporarily suspended to implement these operational changes. Operations are expected to restart in late August.
In addition to production from Chapada mine, Vaaldiam holds a 100-per-cent interest in the Duas Barras mine in the state of Minas Gerais, Brazil. The Duas Barras mine commenced commercial production in September, 2007, and, during the past six months, has sold a total of 31,641 carats of diamonds for total gross proceeds of $5,185,235 (U.S.), or an average value of $164 (U.S.) per carat. In addition, gold sales from the Duas Barras mine to date have totalled $674,546 (U.S.). Vaaldiam is currently expanding production in the vicinity of the Duas Barras mine through the acquisition of RST Recursos Minerais Ltda., which provides the company with a second 2,000-tonne-per-day mining operation in this district.
This release has been reviewed by Katya Masun, PGeo, who is a qualified person under National Instrument 43-101.
We seek Safe Harbor.