BRAZILIAN DIAMONDS LIMITED
Salvador 1 Project Update
Highlights:
* Salvador 1 kimberlite confirmed diamondiferous with
recovery of 12.44 carats from 603.5 tonnes in Pit 1
* Possibly enriched foliated phases yielded 10.44 carats from
preliminary processing of 402 tonnes of kimberlite, as well as
higher microdiamond counts, and are being further examined now at
the Company's mineral processing laboratory in Patos de Minas,
Brazil
* Overlying shallow alluvial deposits enriched compared to
kimberlite
Brazilian Diamonds Limited ("Brazilian Diamonds" or "the Company")
reports that field operations are now completed at its pit sample
evaluation of the Salvador 1 kimberlite pipe in central Bahia State,
Brazil. The Company excavated three pits from 8 to 11m deep, and
processed the extracted kimberlite in a plant built on-site. In
addition, the Company completed three drill holes and conducted
microdiamond tests to identify potentially higher grade zones.
Kimberlite weighing 603.5 tonnes yielded 12.44 carats of diamonds
from Pit 1, demonstrating that the pipe is diamondiferous, although
with a low abundance in the portion tested. Preliminary results from
402 tonnes of kimberlite extracted from Pit 3 returned 10.44 carats
of diamonds. Additional kimberlite, mostly from the second and third
pits has been shipped to the Company's mineral processing laboratory
in Patos de Minas, Brazil, for final diamond processing and quality
control tests following initial processing steps on-site.
The pipe is overlain by alluvial sands and gravels from 0 to 10m
thick that have been mined historically for diamonds, and the
underlying kimberlite has been postulated as the source for some or
most of those diamonds. The evaluation program confirmed that the
Salvador 1 kimberlite has significant areal extent of more than six
hectares at the surface, and established that it extends vertically
in a pipe-like shape to more than 200m depth. Mapping, logging of
drill core, and examination of pit walls demonstrated that the
kimberlite contains both strongly foliated and non-foliated rock
units (or "phases"), suggesting multiple ages of emplacement.
Caustic Microdiamond Results
The occurrence of strongly foliated and non-foliated phases within
the Salvador 1 kimberlite suggests the possibility that intrusion
occurred in two events widely separated in time. The older event
would have been before regional metamorphism, which leads to
foliation, and the younger event would have intruded after
metamorphism, simply exploiting the same emplacement structures.
Such widely separated intrusive events might be expected to carry
very different mantle samples, including diamond content.
Microdiamond tests were completed to determine whether strongly
foliated phases carry a different abundance of diamonds than the
non-foliated phases. Samples were processed by SGS-Geosol using
their new laboratory in Brasilia. The process began by
disaggregation of each sample at the Company's Patos de Minas
laboratory, under the direction of a representative of SGS-Geosol.
This disaggregation stage used a 0.075mm screen, with all material
finer than that being discarded. The reduced samples were then
transported to SGS-Geosol's Brasilia laboratory for caustic fusion,
again using a 0.075mm bottom sized screen.
A total of 768kg of kimberlite were treated for microdiamonds with
half being from the strongly foliated phases. A total of 28
microdiamonds remaining on a 0.075mm screen were recovered, with 90%
(25 of 28) being recovered from the strongly foliated phases (Table
1), which comprised 448kg of sample weight.
Table 1: Results of microdiamond tests comparing non-foliated phases
in Pit 1 to the strongly foliated phases in Pits 2 and 3.
+-------------------------------------------------------------------+
| Square Mesh | Caustic | Caustic Sample | All sample |
| screen | Foliated | Non-foliated totals | totals |
| openings | Sample totals | | |
|---------------+----------------+---------------------+------------|
| | | | |
|---------------+----------------+---------------------+------------|
| | Pit 1, 2 and 3 | Pit 1 | Pit 1, 2 |
| | | | and 3 |
|---------------+----------------+---------------------+------------|
| | | | |
|---------------+----------------+---------------------+------------|
| Sample # | | | |
|---------------+----------------+---------------------+------------|
| Start weight | 448 | 320 | 768 |
| kg | | | |
|---------------+----------------+---------------------+------------|
| 0.600 mm | 1 | 0 | 1 |
|---------------+----------------+---------------------+------------|
| 0.425 mm | 1 | 0 | 1 |
|---------------+----------------+---------------------+------------|
| 0.300 mm | 3 | 0 | 3 |
|---------------+----------------+---------------------+------------|
| 0.212 mm | 6 | 0 | 6 |
|---------------+----------------+---------------------+------------|
| 0.150 mm | 3 | 3 | 6 |
|---------------+----------------+---------------------+------------|
| 0.105 mm | 4 | 0 | 4 |
|---------------+----------------+---------------------+------------|
| 0.075 mm | 12 | 0 | 12 |
|---------------+----------------+---------------------+------------|
| <0.075 mm | 6 | 0 | 6 |
|---------------+----------------+---------------------+------------|
| | 35 | 3 | 38 |
|---------------+----------------+---------------------+------------|
| | | | |
|---------------+----------------+---------------------+------------|
| Weight carats | 0.028 | 0.001 | 0.029 |
+-------------------------------------------------------------------+
The recovery of nearly ten times as many microdiamonds from the
strongly foliated phases as from the non-foliated suggests that an
older kimberlite intrusive event may carry most of the diamonds.
Possibly, the non-foliated kimberlite is a younger
(post-metamorphism) intrusive event that is virtually barren of
diamonds, and the strongly foliated kimberlite is older and carries
more diamonds.
Pit 1 Kimberlite Results
Each of the pits excavated for kimberlite comprises a mixture of
kimberlite phases. Pit 1 sampled mostly non-foliated phases. In
total, 603.5 tonnes of kimberlite from Pit 1 were processed, yielding
250 diamonds weighing 12.44 carats (Table 2). The kimberlite was
collected to a maximum depth of 11m below the kimberlite surface.
Processing was carried out using the plant constructed on-site, which
employed rotary pans and crushers to disaggregate the kimberlite and
create a concentrate from the disaggregated kimberlite by passing
first through a flowsort x-ray sorter, and then across grease
tables. The plant used a bottom screen size of 0.85mm. The
concentrate was picked by hand in a secure on site facility.
A portion of the plant concentrate was subsequently examined for
quality control at the Company's mineral processing laboratory in
Patos de Minas, Brazil. Concentrate from approximately 250 tonnes of
the sample start weight was trucked to the laboratory in Patos de
Minas. A total of 0.75 carats of diamonds were recovered in this
quality control procedure, and the diamonds collected have been added
in to the totals reported above. Some quality control steps
recovered diamonds finer than 0.85mm, and those have been included in
the data reported below for completeness, but these fine diamonds
represent less than 3% of the total weight.
Table 2: Results from Salvador kimberlite Pit 1 presented by screen
size and weight.
+-------------------------------------------------------------------+
| Salvador 1 Kimberlite Diamond recovery from Pit | |
| 1 | |
|-------------------------------------------------+-----------------|
| | | |
|-------------------------+-----------------------+-----------------|
| Screen (mm) | # diamonds | Weight (carats) |
|-------------------------+-----------------------+-----------------|
| + 9.5 | | |
|-------------------------+-----------------------+-----------------|
| + 6.7 | 1 | 2.65 |
|-------------------------+-----------------------+-----------------|
| + 4.75 | | |
|-------------------------+-----------------------+-----------------|
| + 3.35 | 5 | 2.53 |
|-------------------------+-----------------------+-----------------|
| + 2.36 | 13 | 2.00 |
|-------------------------+-----------------------+-----------------|
| + 1.70 | 27 | 2.17 |
|-------------------------+-----------------------+-----------------|
| + 1.18 | 75 | 2.04 |
|-------------------------+-----------------------+-----------------|
| + 0.850 | 53 | 0.77 |
|-------------------------+-----------------------+-----------------|
| + 0.600 | 36 | 0.27 |
|-------------------------+-----------------------+-----------------|
| + 0.425 | 12 | 0.01 |
|-------------------------+-----------------------+-----------------|
| + 0.300 | 15 | 0.00 |
|-------------------------+-----------------------+-----------------|
| +0.212 | 13 | 0.00 |
|-------------------------+-----------------------+-----------------|
| +0.150 | | |
+-------------------------------------------------------------------+
Concentrates from Pit 3 and from Pit 2 were produced on-site, but
have not yet been fully picked for diamonds. Concentrates from one
Pit 3 sample collected from between 1 and 6 m below the kimberlite
surface has had preliminary hand picking for diamonds on site,
yielding 240 diamonds weighing 10.44 carats from 402 tonnes of
kimberlite (Table 3). Quality control and process audit procedures,
which are likely to yield some further diamonds, have not yet been
applied to this sample.
Table 3: Preliminary results from the Pit 3 sample from -1 to -6 m
below the kimberlite surface.
+-------------------------------------------------------------------+
| Salvador 1 Preliminary Diamond Recovery from | |
| Pit 3 | |
|-------------------------------------------------+-----------------|
| (-1m to -6m) | | |
|---------------------------+---------------------+-----------------|
| | | |
|---------------------------+---------------------+-----------------|
| Screen (mm) | # diamonds | Weight (carats) |
|---------------------------+---------------------+-----------------|
| + 9.5 | | |
|---------------------------+---------------------+-----------------|
| + 6.7 | 0 | 0 |
|---------------------------+---------------------+-----------------|
| + 4.75 | 0 | 0 |
|---------------------------+---------------------+-----------------|
| + 3.35 | 4 | 2.19 |
|---------------------------+---------------------+-----------------|
| + 2.36 | 10 | 2.17 |
|---------------------------+---------------------+-----------------|
| + 1.70 | 35 | 2.46 |
|---------------------------+---------------------+-----------------|
| + 1.18 | 78 | 2.29 |
|---------------------------+---------------------+-----------------|
| + 0.850 | 88 | 1.11 |
|---------------------------+---------------------+-----------------|
| + 0.600 | 25 | 0.22 |
|---------------------------+---------------------+-----------------|
| + 0.425 | 0 | 0 |
|---------------------------+---------------------+-----------------|
| + 0.300 | 0 | 0 |
|---------------------------+---------------------+-----------------|
| + 0.212 | 0 | 0 |
|---------------------------+---------------------+-----------------|
| + 0.150 | | |
|---------------------------+---------------------+-----------------|
| | | |
+-------------------------------------------------------------------+
Concentrates from each of the Pit 2 and Pit 3 samples have been
transported to the Patos de Minas laboratory, where they will be
subjected to quality control procedures and further picked for
diamonds. Results from these samples will be reported when
available.
Alluvial Results
Alluvial sands and gravels from above the kimberlite (and in some
cases including a minor portion of the uppermost part of the
kimberlite) were processed for diamonds simultaneously with the
kimberlite samples. To exclude contamination, the sand and gravel
samples were processed through an entirely separate plant. The plant
used for the alluvial is a jig with a bottom screen size of 1.0mm.
A total of 1,268m� (estimated to weigh 2,285.25 tonnes) of sands and
gravels were processed through the jig plant, yielding 78.93 carats
(Table 4). The two largest recovered diamonds weighed 3.15 and 2.65
carats, respectively.
Table 4: Diamond recovery results from alluvial samples above the
Salvador 1 Kimberlite.
+------------------------------------------------------+
| Salvador Alluvial Diamond recovery | |
|------------------------------------+-----------------|
| | | |
|------------------+-----------------+-----------------|
| Screen (mm) | # diamonds | weight (carats) |
|------------------+-----------------+-----------------|
| + 9.5 | | |
|------------------+-----------------+-----------------|
| + 6.7 | 2 | 5.8 |
|------------------+-----------------+-----------------|
| + 4.75 | 4 | 4.15 |
|------------------+-----------------+-----------------|
| + 3.35 | 48 | 22.3 |
|------------------+-----------------+-----------------|
| + 2.36 | 100 | 22.6 |
|------------------+-----------------+-----------------|
| + 1.70 | 174 | 15.36 |
|------------------+-----------------+-----------------|
| + 1.18 | 30 | 7.53 |
|------------------+-----------------+-----------------|
| + 0.850 | 82 | 1.17 |
|------------------+-----------------+-----------------|
| + 0.600 | 8 | 0.02 |
|------------------+-----------------+-----------------|
| + 0.425 | 1 | 0 |
|------------------+-----------------+-----------------|
| + 0.300 | 1 | 0 |
|------------------+-----------------+-----------------|
| + 0.212 | 1 | 0 |
|------------------+-----------------+-----------------|
| + 0.150 | | |
|------------------+-----------------+-----------------|
| | | |
+------------------------------------------------------+
Summary
The diamond recovery from the Salvador 1 Project demonstrates that
the kimberlite is diamondiferous. The possibility of higher
abundances within the foliated rocks is being further examined. The
shallow overlying alluvial sands and gravels are enriched in diamond
content compared to the kimberlite, although the volumes are
smaller. The confirmation of a diamondiferous kimberlite feeding the
alluvial deposits of central Bahia has positive implications for
further exploration within the Company's extensive land position and
database for the region.
Commenting on this first stage of results, Brazilian Diamonds
Chairman, Kenneth Judge said, "Whilst the initial test results from
Salvador 1 were below the Company's economic threshold, the presence
of diamonds in the kimberlite body is encouraging albeit the
combination of foliated and non-foliated materials made our testing
of this kimberlite body, quite challenging. Further work now needs
to be undertaken at the Company's Patos de Minas lab to determine
whether the strongly foliated phases from Pits 2 and 3 carry
sufficient diamonds for the kimberlite body to be proven economic
with further sampling."
Harrison Cookenboo, Ph.D., P.Geo., is a Qualified Person by the
standards of NI43-101, and has approved the contents of this news
release.
For further information contact:
Kenneth P. Judge, Chairman
Tel: + 44-7733 001 002
Stephen Fabian, President & CEO
Tel: + 55-31- 9186 4660
Jon Bey, Investor Relations
Tel: 1-866-689-2599
Email: jbey@braziliandiamonds.com
Hanson Westhouse Limited (Nomad to the Company)
Tim Feather / Matthew Johnson
Tel: + 44 113 246 2610
Landsbanki Securities (UK) Limited (Broker to the Company)
Tom Hulme
Tel: + 44 207 426 9000
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