IIE:CA V.IIE

There''s carats in them Brazilian HILLS...

[Tommer3]

Since where talking about Diamond stories... here one that's not to far away from Iciena's claims in Brazil. Released yesterday! -------- Vaaldiam Resources mines 2,027 carats from Duas Barras 2007-08-07 10:57 ET - News Release Mr. Ken Johnson reports VAALDIAM RESOURCES LTD.: HIGH GRADE RESULTS CONTINUE AT DUAS BARRAS MINE Vaaldiam Resources Ltd. has recovered 10,289 diamonds with a total weight of 2,027.09 carats from 6,661.05 bank cubic metres of gravel during the commissioning of its 100-per-cent-owned Duas Barras mine. The average recovered diamond grade since the start of plant commissioning in early May is 0.30 carat per bank cubic metre. Additional production highlights: - Average size of the diamonds recovered is 0.20 carat per stone; - 10 largest diamonds recovered weigh 6.25, 3.81, 2.81, 2.78, 2.75, 2.70, 2.61, 2.59, 2.47 and 2.38 carats; - 21 per cent of the diamonds by weight are larger than 0.50 carat (511 diamonds weighing 431.66 carats); - 7.4 per cent of the diamonds by weight are larger than one carat (101 diamonds weighing 149.92 carats). Free gold is also being recovered in the Duas Barras processing plant. Commissioning of the gold recovery circuit was only recently started, and has since resulted in the recovery of 1.35 kilograms of fine gold concentrate from 3,355.26 bank cubic metres of gravel, indicating a recovered grade of 0.40 gram gold per bank cubic metre. Ken Johnson, president and chief executive officer of Vaaldiam, reports that: "Since plant commissioning started in early May, we have been steadily increasing throughput to achieve one 10-hour working shift. We are now adding a second 10-hour work shift at the recovery plant, as we approach the plant's processing design capacity of 80 cubic metres of gravel per hour. We continue to be quite impressed by the high diamond recoveries experienced during plant commissioning, which is a tribute to our technical team's operating efficiency and the high grade of the Duas Barras deposit. The recovered grade of 0.30 carats per cubic metre and 0.40 grams gold per cubic metre encountered thus far is significantly higher than our indicated resource grade of 0.16 carats per cubic metre and 0.18 grams gold per cubic metre, and is expected to further enhance the economics of this mine." Vaaldiam's Duas Barras mine is situated in the state of Minas Gerais, Brazil. The deposit contains an indicated resource of approximately 1,843,000 bank cubic metres at an estimated grade of 0.16 carat per cubic metre and 0.18 gram gold per cubic metre, representing an in situ diamond resource of 295,000 carats and 335 kilograms (10,780 ounces) of gold. In addition, the deposit contains an inferred resource of approximately 856,000 bank cubic metres at an estimated grade of 0.16 carat per cubic metre and 0.18 gram gold per cubic metre, representing an in situ diamond resource of 137,000 carats and 156 kilograms (5,010 ounces) of gold. An independent valuation of 169.15 carats of diamonds recovered during the bulk sampling program indicated an average value of $197 (U.S.) per carat. Photos of the Duas Barras mine and the diamonds recovered during commissioning are available for viewing on Vaaldiam's website. This release has been reviewed by Jose Ricardo Pisani, vice-president, exploration, and Paul Daigle, PGeo, who are qualified persons under National Instrument 43-101. We seek Safe Harbor.