Brauna 3 Kimberlite NI 43-101 Mineral Resource Indicated: 1.3Million Tonnes and 186,000 Carats Inferred: 4.8 Million Tonnes and971,000 Carats (ccnm)
TORONTO, ONTARIO--(Marketwire - Jan. 20, 2011) -Vaaldiam Mining Inc. ('Vaaldiam' or the 'Company') (TSX:VAA) is pleasedto announce the National Instrument 43-101 compliant mineral resourceestimate for the Braúna 3 kimberlite pipe ('B3') at the Braúna Propertyin Bahia State, Brazil.
The mineral resource estimate includes IndicatedResources to a depth of approximately 40 metres of 0.63 million tonnesat a grade of 24.58 carats per hundred tonnes ('cpht') in the southlobe, and 0.67 million tonnes at a grade of 4.72 cpht in the north lobeof the kimberlite. Inferred Resources to a depth of approximately 200metres are estimated to contain 3.75 million tonnes at a grade of 24.58cpht in the south lobe and 1.04 million tonnes at a grade of 4.72 cphtin the north lobe.
An independent Qualified Person ('QP') from ACA Howe International Limited ('Howe') calculated the mineral resource estimate.
The following table summarizes the details of the NI 43-101 mineral resource as prepared by Howe:
Table 1: Mineral Resource Statement for the B3 Kimberlite, North and South Lobes
| Resource Category |
Lobe |
Dry Tonnes (x1,000) |
Diluted Grade (cpht) |
Carats (x1,000) |
Grade (cpht) |
Price (US$/carat) |
| Indicated |
North |
667 |
4.72 |
31 |
4.72 |
98 |
| Inferred |
1,042 |
4.72 |
49 |
4.72 |
| Indicated |
South |
629 |
24.58 |
155 |
24.58 |
339 |
| Inferred |
3,753 |
24.58 |
922 |
24.58 |
- Indicated Resource defined from surface to the 235mRL
- Grade used is the diluted diamond grade obtained from the individual bulk samples.
- Mineral Resources are not accumulated within an optimized pit shell.
- Mineral Resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
- The volume of the North and South Lobes includes internal dilution.
- The quantity and grade of reported Indicated and Inferred Resources in this estimate are conceptual in nature. There is no guarantee that all or any part of the mineral resource will be converted into a mineral reserve.
- Due to rounding, figures may not add up to the totals shown.
- A 1 millimetre bottom cut-off is used for the Mineral Resource.
In the Indicated Category, 83.3% of the carats arederived from the south lobe and 16.7% from the north lobe. In theInferred Category, 95.0% of the carats are derived from the south lobeand 5.0% of the carats are derived from the north lobe. Diamond valuesreported are the average estimated sales price of two independentdiamond valuations of 1,013.75 carats of rough diamonds recovered fromthe south lobe and 34.74 carats from the north lobe (as reported onDecember 2, 2010). The diamond valuation was completed on November 1,2010 using Antwerp market data.
The mineral resource estimated prepared by Howeincludes kimberlite volume, density and tonnage data collected duringthe bulk sampling program in 2010 which involved the collection of threesurface samples totaling 4,909.3 dry tonnes of kimberlite. Samples 1and 2 were taken from the south lobe and sample 3 from the north lobe. Atotal of 5,064 diamonds with a total weight of 1,057.39 carats wererecovered from the three bulk samples, with 4,904 diamonds totaling1,021.97 carats from the south lobe and 160 diamonds with a total weightof 35.42 carats from the north lobe. This mineral resource estimateuses a 1.0 millimetre bottom diamond size cut-off and considers allkimberlite to a depth of 200 metres below surface, where drilling hasdetermined that the kimberlite remains open at depth.
Project Overview
The two-hectare B3 pipe is open vertically andlaterally. Vaaldiam plans to further explore B3 and the entire propertywith the objective of increasing the diamond resources. It hascommissioned a Preliminary Economic Assessment for B3, which is locatedin easily accessible terrain just 7 km south of the town of Nordestina.Nordestina has excellent infrastructure, grid power, services andskilled personnel. B3 is one of 22 kimberlite occurrences discovered sofar on the property. Vaaldiam has performed exploration work on onlyfive occurrences, including the Braúna 8 ('B8') kimberlite dike situated5 km north of the B3 pipe. Mini-bulk samples from this 4.5 metre-widedike produced 170 diamonds weighing 19.37 cts, including a 7.97 caratwhite octahedron stone, from approximately 46 dry tonnes, inferring arecovered grade of 42 cpht. The B8 occurrence is a vertically orientedkimberlite dike forming a 1,000 metre-long section of the northwesttrending dike system. Recent exploration conducted in the vicinity ofthe B8 dike has confirmed that this dike is linked to the Braúna 21occurrence. Mini-bulk sampling of the one hectare Braúna 7 pipe,situated 1 km to the east of the B3 pipe, resulted in the recovery of 30diamonds with a total weight of 3.87 carats from approximately 87tonnes of kimberlite with an estimated recovered diamond grade of 4.5cpht.
Vaaldiam commissioned the NI 43-101 mineral resourceestimate for the B3 kimberlite pursuant to its obligation under NI43-101 to prepare and file technical reports and as such, the technicalreport is the sole responsibility of Vaaldiam.
Mr. Daniel C. Leroux (BSc, P.Geo.) of Howe is theindependent QP who supervised the preparation of the mineral resourceestimate for the B3 kimberlite. Mr. Leroux has 16 years of directexperience with diamond projects located in Canada, Africa, Europe andSouth America, including managerial responsibilities for all variousexploration stage diamond projects from conceptual grassrootsexploration projects to bulk sampling and pre-feasibility studies onadvanced diamond projects and has completed mineral resource estimateson both primary and alluvial diamond deposits. Mr. Leroux also hasextensive diamond processing experience of various types of processplant technology and recovery plant technology utilized in both primaryand alluvial diamond mining operations worldwide.
Ms. Katharine Masun (HBSc, MSc, MSA, P.Geo.) ofVaaldiam and Mr. Douglas Roy (BEng, MASc, P.Eng.) of Howe were closelyinvolved in the mineral resource estimation process for the B3kimberlite. Ms. Masun has more than 13 years of experience in diamondexploration and kimberlite geology, having been involved in projectslocated in Canada, India, South America and Africa, from grassroots toadvanced stages of exploration and evaluation. Mr. Roy has worked as amining engineer for more than 10 years, which has included estimation ofresources and reserves for precious metals, base metals and industrialminerals and well as participation in pre-feasibility and feasibilitystudies. Howe consents to the statement of Indicated and InferredMineral Resources contained herein.
This release has been reviewed by Katharine MasunP.Geo., who is a qualified person under National Instrument 43-101. Foradditional information regarding Vaaldiam please visit www.vaaldiam.com