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SALVADOR I BULK TESTING - PRELIMINARY RESULTS PIT 1
Vancouver,
BC, February 26th, 2008. Brazilian Diamonds Ltd (BDY: TSX & AIM) ("Brazilian
Diamonds" or the "Company") provides the following update on
the ongoing macro-diamond testing of its 100% owned Salvador 1 kimberlite in
central Bahia State, Brazil. The Company is pleased to confirm the recovery
of diamonds from the partial processing of initially excavated kimberlite
material and the separately processed diamond bearing sands and gravels that
overlay the Salvador 1 kimberlite.
The
initial and partial results reported in this announcement are considered
encouraging for the remainder of the testing of the Salvador 1 kimberlite and
the Company looks forward to reporting complete results from each of its test
pits as they become available.
Salvador 1 Kimberlite Testing
The Salvador 1 kimberlite is a six hectare body
partly exposed beneath the sands and gravels of an old alluvial diamond mine
in central Bahia State, Brazil. The ongoing testing of the Salvador 1 kimberlite
has completed excavation from the first two of the scheduled six pits. Each
pit is designed to extract approximately 1,300 tonnes of kimberlite from
different parts of the kimberlite pipe.
Extraction from Pit 1 began in November 2007, and
excavation is currently proceeding on the third pit. The kimberlite is
multiphase, with as many as six kimberlite rock types identified in the first
pit alone. A single one of these phases dominates most of the excavated
sample from Pit 1. Partial results are reported herein, with complete and
fully verified results to be reported upon completion of all stages of
processing.
Processing of the first kimberlite sample began
in December 2007 and has been accelerated in the first part of 2008 as
on-site plant procedures for the treatment of recovered kimberlite have been
improved. This processing plant consists of a primary disaggregation rotary
pan, followed by x-ray flowsort and grease table for the recovery of
diamonds. It has been augmented with a roll crusher to better handle harder
kimberlite fragments, however sample treatment remains slower than
excavation.
While none of the samples extracted to date have
been fully processed, the Company is pleased to report the recovery of 66
diamonds weighing 7.78 carats, with the largest stone weighing 2.65 carats
from the Pit 1 kimberlite material processed to date. These diamonds come
from four separate samples taken from within Pit 1 and represent a total of
1,460 tonnes of extracted kimberlite ("in-situ") (calculated using
an experimentally determined average kimberlite density of 2.23 g/cm3).
Approximately 52 per cent. of the total
kimberlite extracted to date has begun to be processed and significant parts
of that remain incompletely processed (for example, needing further
recrushing of harder kimberlite materials to liberate fine diamonds).
Processing of the kimberlite sub-sample from the
top one metre portion of Pit 1 is almost complete with 35 diamonds weighing
2.51 carats recovered from 128 tonnes of in-situ kimberlite processed. More
than half of this sample remains to be reprocessed through the plant after
crushing to liberate diamonds enclosed in kimberlite fragments recovered
during the first processing pass. These stones were tested at the Company's
ISO 17025 certificated laboratory in Patos de Minas, with 9 remaining on a
+2.0mm screen, and 20 remaining on a 1.0 mm screen, and 6 remaining on a +0.6
mm screen (Table 1).
Table 1: Partial results from the top sub-sample in Pit 1.
Partial Results
Kimberlite Pit 1 - top 1m
sub-sample
Start Weight
Screen
Opening #
stones
+4.0
mm
-
-4.0
/ +2.0 mm 9 1.58
cts
2.0
/ +1.0
mm 20
0.83 cts 128 tonnes*
-1.0
/ +0.6 mm
6 0.10 cts
Total
35 2.51 cts
*partial results
The second sub-sample of Pit 1 weighing a total of 123 tonnes from a depth of
one to two metres into the kimberlite has yielded 20 diamonds weighing 4.45
carats, but with part of the sample still awaiting first pass and second pass
processing, as well as quality control tests at the Patos Laboratory. Of the
recovery from kimberlite to date, 1 stone weighing 2.65 carats remained on a
6.0 mm screen, 1 remained on a 4.0 mm screen, 3 remained on a +2.0mm screen,
11 remained on a 1.0 mm screen, and the other 4 remained on a +0.6 mm screen.
Table 2: Partial results from the second sub-sample (one to two metre
depth) from Pit 1.
Partial Results
Kimberlite Pit 1 - second
sub-sample Start
Weight
1-2m
depth
Screen
Opening # stones
+6.0 mm 1 2.65
cts
-6.0
/ +4.0 mm 1 0.90
cts
-4.0
/ +2.0 mm
3 0.40
cts 123 tonnes*
2.0
/ +1.00
mm 11
0.45 cts
-1.0 / +0.6 mm 4 0.05
cts
Total
20 4.45
cts
*partial results
The third kimberlite sub-sample of Pit 1 is less
than half way through processing and so far has yielded 11 stones weighing
0.82 carats, demonstrating that the Salvador 1 kimberlite carries diamonds to
the maximum tested depth of 11m below the kimberlite surface.
Complete size and weight distributions will be reported upon
completion of this and the other sub-samples for Pit 1.
Quality control and quality assurance is being
undertaken at the company's certified ISO 17025 indicator mineral processing
laboratory on Patos de Minas, Brazil, where concentrates are re-examined for
diamonds that may not have been recovered in processing by the on-site plant.
Salvador 1 Alluvial Sand and Gravel Testing
Concurrent with the kimberlite sampling and
processing at Salvador 1, an entirely separate processing plant is being used
to recover diamonds from the sands and gravels overlying the Salvador 1
kimberlite.
The diamond-bearing sands and gravels overlying
the Salvador 1 kimberlite have a long history of being mined for diamonds by
artisanal miners (garimpeiros) but need to be removed for any future mining
activity from the underlying kimberlite. The Company is therefore testing
these sands and gravels for their diamond production potential at the same
time as excavating pits into the underlying kimberlite body.
The on site reporting of the preliminary results
from the separate sand and gravel processing plant include recovery of 124
diamonds weighing 17.86 carats from 1,420 m3 bulk volume of gravel
and sand material (estimated to weigh 1,720 tonnes using an estimated 2 g/cm3
density in-situ) transported to the gravel plant. However approximately two
thirds of this material has yet to be processed through the recovery plant
(flowsort and grease tables).
The material initially processed includes sands
and gravels from above Pit 1 and the kimberlite-alluvial surface and the four
largest diamonds so far recovered weigh between 0.91 and 1.06 carats. Four of
the recovered diamonds remain on a 4.0 mm screen, 51 remain on a +2.0 mm screen,
52 remain on a 1.0 mm screen, and the other 17 remain on a +0.6 mm screen.
Table 3: Partial results from the gravels and sands overlying the
Salvador 1 kimberlite. Note that less than one third of the total start
weight has so far been fully processed.
Gravel
&
Sands
Start Weight
Screen
Opening #
Stones
+4.0
mm
4 3.57 cts
-4.0 / +2.0
mm 51
11.51 cts
2.0
/ +1.0
mm 52
2.40
cts 1,720
tonnes*
-1.0
/ +0.6 mm 17
0.38 cts
Total
124 17.86 cts
*partial
results
Dr. Harrison Cookenboo (P.Geo), a Consulting Geologist and Qualified Person
as defined under National Instrument 43-101, is responsible for the technical
disclosure in this release and has reviewed and approved the contents of this
release. Dr. Cookenboo assisted in the design of the Salvador 1 testing
programme and completed a site field visit in December 2007. The site visit
included the examination of the kimberlite exposed in Pit 1 as referred to in
this announcement and verification of the operations up to that time.
Commenting on these results, Kenneth P. Judge,
Chairman of Brazilian Diamonds said:
"We are pleased to be able to report the
recovery of diamonds from the partial processing of samples taken from the
overlying sands and gravels as well as in all sub-samples of the Pit 1
kimberlite down to the maximum excavated depth of 11m beneath the kimberlite
surface. We are especially encouraged by the recovery of larger stones and
with the introduction of new plant procedures and equipment, we should be
able to significantly increase the rate and efficiency of processing. We
therefore look forward to reporting complete results from each of the
proposed test pits as they become available."
Dr Cookenboo commented that "I am encouraged
that we have recovered diamonds from each of the Pit 1 sub-samples. Given the
multiple different kimberlite rock types ("phases") which I have
seen in Pit 1 exposures as well as in the diamond drill core, I look forward
to seeing the results of the ongoing pit tests, the receipt of which should
be accelerated by the introduction of new plant procedures and
equipment".
Editors' Note
Brazilian Diamonds is a leading Brazil-based
exploration company focused on the discovery of kimberlites on its extensive
portfolio of properties in the States of Minas Gerais and Bahia, with the
goal of becoming a significant producer of diamonds.
The
Company is awaiting final approval before commencing the environmental
licensing process for the development of the Canastra 1 kimberlite body for
which mine feasibility work has already been completed and the required Mines
Department approvals are already in place. It is intended to bring Canastra 1
into production once the environmental licensing process is completed.
The
Company's Salvador diamond project in Bahia includes the diamondiferous
Salvador 1 kimberlite. This project was acquired from De Beers which retains
a right to reacquire up to 40 per cent. of any kimberlite found on the
Salvador properties which is confirmed to contain more that 200 carats of
diamonds.
The
Company has a fully operational diamond separation/analysis laboratory at
Patos de Minas, Minas Gerais which is strategically located near its
properties in the Santo Ant�nio and Coromandel areas. The Company has a
highly experienced team including six geologists located at the Company's
facilities in Brazil.
The
Company's strategy for non-core activities on its properties is to form joint
ventures. A Cdn$1,000,000 feasibility study is underway for a joint venture
for the mining of alluvial diamonds on its properties in the Santo Ant�nio
river drainage. The joint venture involves two important Brazilian companies:
CODEMIG, the state owned mining development organization and Mineracao Rio
Novo Ltda., a wholly owned subsidiary of Andrade Gutierrez SA, one of
Brazil's largest civil engineering firms and an existing large scale, dredge
based producer of alluvial diamonds.
For further information refer to the Company's
website www.braziliandiamonds.com or contact:
Brazilian Diamonds Limited
Brazilian Diamonds Limited + 44 7733 001 002
Stephen Fabian, CEO + 55 31 8814 5111
Investor Relations
Europe - Paul Ensor + 44 207 590 5503
North America - Jon Bey 1-866-689-2599
Hanson Westhouse Limited (Nomad to the Company) + 44 113 246 2610
Tim Feather / Matthew Johnson
Landsbanki Securities (UK) Limited (Broker to the Company) + 44 207
426 9000
Tom Hulme
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