Post by Franko10 ™ on Sept 16, 2004 8:00:14 GMT -5
The Management of Diagem International Resource Corp, provides the following update and work plan for its diamond properties in the Juina Diamond Province, Mato Grosso State, Brazil;
Property 108
Presently, a bulk-testing program is underway on this property, in order to provide detailed information on diamond grade and value from alluvial gravel deposits. The work will consist of gravels from up to 15 large test pits processed using the Company's moveable plant. The test pits will vary in volume, in proportion to the size of the blocks of gravels to be tested.
The first of these pits was completed April 22, and recovered 56 diamonds with a total carat weight of approximately 39 carats. Five of these stones are over one carat in weight, the largest of which is a 16 carat gem quality diamond.
Grade has not yet been defined in this first pit due to the complexity of this type of deposit; however, the average value of the diamonds recovered is enhanced due to the presence of large, gem quality, stones. Therefore a value per cubic metre of gravel or ore can only be calculated once the diamonds have been formally valued. Results and preliminary conclusions will be reported on as each phase of test pits is completed and the technical team has compiled and interpreted the data.
Before seeking a Mining Concession, under the Brazilian Mining Code the Company has three months to complete this series of bulk-test pits so as to present its Final Report on this property; time is, however, at a premium. The diamonds recovered will be accumulated and sold, after evaluation, particularly any larger gemstones such as the 16 carat example mentioned here.
The study of this 10,000 hectare property has been conducted intermittently, over a five year period, identifying not only the potential for large alluvial deposits but also a number of interesting kimberlite geophysical and geochemical targets; these await further investigation once priority work is completed.
Property 213
This property contains two of a cluster of five diamondiferous kimberlite pipes - the "Acori Cluster". The watercourse draining directly from this cluster is aptly named the "Garnet Creek", due to the abundance of garnets (kimberlite indicator minerals) found throughout its length. The Garnet Creek, as well as other rivers feeding from this cluster area, is known locally to have a higher grade and greater propensity for large diamonds than the regional average. The initial work plan for this property will focus in the area of this creek to include both alluvial and kimberlite testing.
Alluvial testing
The bulk testing will use a pontoon based "Pilot Plant". This plant will have a larger capacity than the current Moveable Plant and is better suited to test/ test mine the river systems in this area. This plant is scheduled for completion in 90 days. There will be ample time, on this property, to exploit richer deposits as they are identified, and complete the necessary processes required by the Mining Code. Diamonds that flow from this process will be accumulated and sold following evaluation.
Kimberlite Testing on 213 (and 214)
Diagem has established that the kimberlites on Property 213 and 214 are diamondiferous from small (tens of kilograms) samples analyzed in October 2000. The challenge today is to further investigate and test these kimberlite pipes to determine the extent and grade of their three types of potentially economic deposits: a) the enriched top and surrounding eluvia cover, b) the saprolitized upper portion and the lower hard rock.
An integral component of the testing plant and equipment, currently under construction, is a processing module dedicated to testing weathered kimberlite. Weathered kimberlitic material will be excavated from the pipes and transported a short distance to the processing plant. The kimberlite pipes in this region are outcropping and weathered to approximately 80 metres. This testing will provide information as to the diamond content of this material at the top of these kimberlite pipes.
Property 214
This property hosts four diamondiferous kimberlite pipes. Three of these pipes form the Acori Cluster at the heads of the aforementioned Garnet Creek. Rio Tinto extensively drilled the other Kimberlite pipe, Pipe 6. Although this pipe did not meet the Rio Tinto criteria for further development, it may represent an opportunity to develop a smaller-scale kimberlite operation, however, more extensive bulk testing is required for a final feasibility study. This property also hosts what appear to be a further cluster of kimberlite targets, as well as a number of other priority targets. These were identified through ground magnetic surveys and the recovery of short transit indicator minerals and are located to the north of the identified Acori Cluster. This property is one of the most advanced and one of the more important properties for kimberlite potential.
The work conducted by Rio Tinto utilized most of the exploration license period and provided sufficient information to complete a Final Report so that the Company can now apply for a Mining Concession. Diagem conducted some additional work identifying additional diamondiferous kimberlite pipes and numerous additional first priority targets. Whilst the Mineral Right is currently under this process no further exploration or evaluation work should be conducted until the mining concession has been granted.
Last week the Company received confirmation of a one-year extension, to April 2003, to complete the detailed work required for a mining concession on this property. The Company aims to complete this process within a shorter time span. A successful Mining Concession application will provide the mechanism for the Company to evaluate the other kimberlite pipes, follow up on the additional targets and evaluate and exploit any defined alluvial gravel deposits on this Mineral Right.
EAG Property 1000
EAG announced today that it has obtained all permits to commence bulk testing on their Juina property in Brazil, Property 1000. EAG plans to excavate 44 bulk samples (20 cubic metres each) in order to prove up a resource of 500,000 cubic metres of diamond bearing gravel. The gravel will be processed in a 15 cubic metre per hour diamond plant, located on the property. This sampling will include the sampling of the ARP-1 kimberlite located in close proximity to the first bulk sample, which produced 89 diamonds (News release April 30, 2002).
Other Properties
Once the Moveable Plant has completed its work on the Property 108, it will begin similar exploration and testing programs on other high potential parts of our extensive property portfolio.
Merger Status
The amalgamation of Diagem with Emerging Africa Gold (EAG) Inc. is the subject of the Extraordinary General Meetings ("EGM") of the respective companies on May 24, 2002. Following shareholder approval, at the EGM, the amalgamation should be finalized by approximately mid June 2002.
Other
The Board of Director as approved the grant of 50,000 share options, at an exercise price of $0.20, for a period of two years, to management and employees.
For and on behalf of
DIAGEM International Resource Corp.
"David Cohen"
President
Property 108
Presently, a bulk-testing program is underway on this property, in order to provide detailed information on diamond grade and value from alluvial gravel deposits. The work will consist of gravels from up to 15 large test pits processed using the Company's moveable plant. The test pits will vary in volume, in proportion to the size of the blocks of gravels to be tested.
The first of these pits was completed April 22, and recovered 56 diamonds with a total carat weight of approximately 39 carats. Five of these stones are over one carat in weight, the largest of which is a 16 carat gem quality diamond.
Grade has not yet been defined in this first pit due to the complexity of this type of deposit; however, the average value of the diamonds recovered is enhanced due to the presence of large, gem quality, stones. Therefore a value per cubic metre of gravel or ore can only be calculated once the diamonds have been formally valued. Results and preliminary conclusions will be reported on as each phase of test pits is completed and the technical team has compiled and interpreted the data.
Before seeking a Mining Concession, under the Brazilian Mining Code the Company has three months to complete this series of bulk-test pits so as to present its Final Report on this property; time is, however, at a premium. The diamonds recovered will be accumulated and sold, after evaluation, particularly any larger gemstones such as the 16 carat example mentioned here.
The study of this 10,000 hectare property has been conducted intermittently, over a five year period, identifying not only the potential for large alluvial deposits but also a number of interesting kimberlite geophysical and geochemical targets; these await further investigation once priority work is completed.
Property 213
This property contains two of a cluster of five diamondiferous kimberlite pipes - the "Acori Cluster". The watercourse draining directly from this cluster is aptly named the "Garnet Creek", due to the abundance of garnets (kimberlite indicator minerals) found throughout its length. The Garnet Creek, as well as other rivers feeding from this cluster area, is known locally to have a higher grade and greater propensity for large diamonds than the regional average. The initial work plan for this property will focus in the area of this creek to include both alluvial and kimberlite testing.
Alluvial testing
The bulk testing will use a pontoon based "Pilot Plant". This plant will have a larger capacity than the current Moveable Plant and is better suited to test/ test mine the river systems in this area. This plant is scheduled for completion in 90 days. There will be ample time, on this property, to exploit richer deposits as they are identified, and complete the necessary processes required by the Mining Code. Diamonds that flow from this process will be accumulated and sold following evaluation.
Kimberlite Testing on 213 (and 214)
Diagem has established that the kimberlites on Property 213 and 214 are diamondiferous from small (tens of kilograms) samples analyzed in October 2000. The challenge today is to further investigate and test these kimberlite pipes to determine the extent and grade of their three types of potentially economic deposits: a) the enriched top and surrounding eluvia cover, b) the saprolitized upper portion and the lower hard rock.
An integral component of the testing plant and equipment, currently under construction, is a processing module dedicated to testing weathered kimberlite. Weathered kimberlitic material will be excavated from the pipes and transported a short distance to the processing plant. The kimberlite pipes in this region are outcropping and weathered to approximately 80 metres. This testing will provide information as to the diamond content of this material at the top of these kimberlite pipes.
Property 214
This property hosts four diamondiferous kimberlite pipes. Three of these pipes form the Acori Cluster at the heads of the aforementioned Garnet Creek. Rio Tinto extensively drilled the other Kimberlite pipe, Pipe 6. Although this pipe did not meet the Rio Tinto criteria for further development, it may represent an opportunity to develop a smaller-scale kimberlite operation, however, more extensive bulk testing is required for a final feasibility study. This property also hosts what appear to be a further cluster of kimberlite targets, as well as a number of other priority targets. These were identified through ground magnetic surveys and the recovery of short transit indicator minerals and are located to the north of the identified Acori Cluster. This property is one of the most advanced and one of the more important properties for kimberlite potential.
The work conducted by Rio Tinto utilized most of the exploration license period and provided sufficient information to complete a Final Report so that the Company can now apply for a Mining Concession. Diagem conducted some additional work identifying additional diamondiferous kimberlite pipes and numerous additional first priority targets. Whilst the Mineral Right is currently under this process no further exploration or evaluation work should be conducted until the mining concession has been granted.
Last week the Company received confirmation of a one-year extension, to April 2003, to complete the detailed work required for a mining concession on this property. The Company aims to complete this process within a shorter time span. A successful Mining Concession application will provide the mechanism for the Company to evaluate the other kimberlite pipes, follow up on the additional targets and evaluate and exploit any defined alluvial gravel deposits on this Mineral Right.
EAG Property 1000
EAG announced today that it has obtained all permits to commence bulk testing on their Juina property in Brazil, Property 1000. EAG plans to excavate 44 bulk samples (20 cubic metres each) in order to prove up a resource of 500,000 cubic metres of diamond bearing gravel. The gravel will be processed in a 15 cubic metre per hour diamond plant, located on the property. This sampling will include the sampling of the ARP-1 kimberlite located in close proximity to the first bulk sample, which produced 89 diamonds (News release April 30, 2002).
Other Properties
Once the Moveable Plant has completed its work on the Property 108, it will begin similar exploration and testing programs on other high potential parts of our extensive property portfolio.
Merger Status
The amalgamation of Diagem with Emerging Africa Gold (EAG) Inc. is the subject of the Extraordinary General Meetings ("EGM") of the respective companies on May 24, 2002. Following shareholder approval, at the EGM, the amalgamation should be finalized by approximately mid June 2002.
Other
The Board of Director as approved the grant of 50,000 share options, at an exercise price of $0.20, for a period of two years, to management and employees.
For and on behalf of
DIAGEM International Resource Corp.
"David Cohen"
President