Post by Franko10 ™ on Sept 16, 2004 9:12:30 GMT -5
David Cohen, President of Diagem International Resource Corp. is pleased to announce that all three of the planned diamond processing plants (50cu.m per hour total capacity) are now complete and operations have started, significantly increasing the capacity and anticipated flow of diamonds. During this initial start-up period 133 diamonds including 15 diamonds over one carat were recovered, giving the diamonds an average weight of 0.44 carats, the largest being 3.7 carats. The plants are located in the Juina Diamond Province in Mato Grosso State, Brazil.
Property 213 - The moveable plant has relocated to property 213 and has commenced evaluation of the alluvial gravels ahead of the larger capacity Pilot plant (25cu.m. per hour). The current work is focused on the Sorisso River approximately 2 kilometers downstream from the Accori Cluster of diamondiferous kimberlite pipes (see news release August 9, 2002). Two large bulk samples have already been completed, and a third is underway in a separate section of intact, alluvial gravels.
Paulo Andreazza (VP of Exploration) reports the following preliminary results. The gravels tested continue to yield a high proportion of large diamonds. 8 diamonds in excess of one carat were recovered from the latest test, the largest being 3.7 carats, and 2 diamonds over one carat were recovered from the first test. The first test recovered 15 carats from 45 cu.m. gravel sample whilst the second pit showed much improved results with 31 carats produced from 51 cu.m. of gravels.
Pilot plant - Construction of the Pilot Plant (25cu.m. per hour) has now been completed. On-site set-up and initial field trials are currently underway and heavy earth-moving equipment is preparing the area. On completion of the implementation process the Pilot plant will initially operate 220 hours a month, to be increased with additional shifts.
Joint Venture Property 1000 - The processing plant completed its commissioning late last week. Several 'tracer'tests were run demonstrating 100% recoverability. As is to be expected, a number of small start up issues were encountered, one of which prevented the use of the crusher whilst processing the first 100cu.m. sample. Irrespective of the part processing, 17 diamonds, 5 over one carat in size, have been recovered so far. This sample is the second of 15 planned100cu.m. samples for this phase of testing. The next two 100cu.m bulk samples, already excavated, will be processed in the coming days at which point the testing will be ongoing with a target of completing one 100cu.m. sample every three days.
General comments - With regard to the early indications of alluvial grades reported previously, and here, management reminds investors of the capricious nature of alluvial deposits, which can and do go from grades such as those mentioned here, to extremely rich grades, sometimes on a meter by meter basis. Alluvial diamonds are scattered, and are often found in small, extremely rich clusters, and sometimes are evenly distributed over larger areas. Our samples to date have supported this observation, however the overall grades encountered are encouraging, and support our strategy to date.
As a result of these, and previous test samples, the Company is accumulating an inventory of rough diamonds, which is held securely. As this inventory grows, our President, David Cohen's expertise in evaluating and marketing diamonds becomes even more valuable. In the near future we will begin to market these rough stones, and proceeds of these sales will return to Brazil to help finance our Kimberlite testing and exploration activities. Given the significantly high incidence of larger stones, we have a growing level of confidence that per carat dollar returns will meet or exceed planned levels.
Kimberlite program - As cash begins to flow from alluvial operations, we are beginning to plan aggressive Kimberlite operations, and a detailed plan for these activities is in preparation.
Corporate matters - The Company has negotiated a Debt Settlement Agreement with Mr. Paulo Andreazza VP of Exploration for the issuance of 500,000 shares from treasury at a deemed price of $0.20 per share. This constitutes payment for consulting fees payable stretching back over three years and is subject to TSX Venture Exchange approval. Mr. Andreazza, one of South America's most successful kimberlite geologists, has and continues to be a key member of Senior Management. In agreeing to this settlement he has increased his interested in the Company and reduced the Company's short-term liabilities. The Company also granted employees 50,000 options, with an exercise of $0.20 expiring April 30, 2004.
Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We do not expect to update forward-looking statements continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's Annual Information Form dated November 7, 2001 filed with the securities regulatory authorities.
For and on behalf of
DIAGEM International Resource Corp.
"David Cohen"
President
Property 213 - The moveable plant has relocated to property 213 and has commenced evaluation of the alluvial gravels ahead of the larger capacity Pilot plant (25cu.m. per hour). The current work is focused on the Sorisso River approximately 2 kilometers downstream from the Accori Cluster of diamondiferous kimberlite pipes (see news release August 9, 2002). Two large bulk samples have already been completed, and a third is underway in a separate section of intact, alluvial gravels.
Paulo Andreazza (VP of Exploration) reports the following preliminary results. The gravels tested continue to yield a high proportion of large diamonds. 8 diamonds in excess of one carat were recovered from the latest test, the largest being 3.7 carats, and 2 diamonds over one carat were recovered from the first test. The first test recovered 15 carats from 45 cu.m. gravel sample whilst the second pit showed much improved results with 31 carats produced from 51 cu.m. of gravels.
Pilot plant - Construction of the Pilot Plant (25cu.m. per hour) has now been completed. On-site set-up and initial field trials are currently underway and heavy earth-moving equipment is preparing the area. On completion of the implementation process the Pilot plant will initially operate 220 hours a month, to be increased with additional shifts.
Joint Venture Property 1000 - The processing plant completed its commissioning late last week. Several 'tracer'tests were run demonstrating 100% recoverability. As is to be expected, a number of small start up issues were encountered, one of which prevented the use of the crusher whilst processing the first 100cu.m. sample. Irrespective of the part processing, 17 diamonds, 5 over one carat in size, have been recovered so far. This sample is the second of 15 planned100cu.m. samples for this phase of testing. The next two 100cu.m bulk samples, already excavated, will be processed in the coming days at which point the testing will be ongoing with a target of completing one 100cu.m. sample every three days.
General comments - With regard to the early indications of alluvial grades reported previously, and here, management reminds investors of the capricious nature of alluvial deposits, which can and do go from grades such as those mentioned here, to extremely rich grades, sometimes on a meter by meter basis. Alluvial diamonds are scattered, and are often found in small, extremely rich clusters, and sometimes are evenly distributed over larger areas. Our samples to date have supported this observation, however the overall grades encountered are encouraging, and support our strategy to date.
As a result of these, and previous test samples, the Company is accumulating an inventory of rough diamonds, which is held securely. As this inventory grows, our President, David Cohen's expertise in evaluating and marketing diamonds becomes even more valuable. In the near future we will begin to market these rough stones, and proceeds of these sales will return to Brazil to help finance our Kimberlite testing and exploration activities. Given the significantly high incidence of larger stones, we have a growing level of confidence that per carat dollar returns will meet or exceed planned levels.
Kimberlite program - As cash begins to flow from alluvial operations, we are beginning to plan aggressive Kimberlite operations, and a detailed plan for these activities is in preparation.
Corporate matters - The Company has negotiated a Debt Settlement Agreement with Mr. Paulo Andreazza VP of Exploration for the issuance of 500,000 shares from treasury at a deemed price of $0.20 per share. This constitutes payment for consulting fees payable stretching back over three years and is subject to TSX Venture Exchange approval. Mr. Andreazza, one of South America's most successful kimberlite geologists, has and continues to be a key member of Senior Management. In agreeing to this settlement he has increased his interested in the Company and reduced the Company's short-term liabilities. The Company also granted employees 50,000 options, with an exercise of $0.20 expiring April 30, 2004.
Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We do not expect to update forward-looking statements continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's Annual Information Form dated November 7, 2001 filed with the securities regulatory authorities.
For and on behalf of
DIAGEM International Resource Corp.
"David Cohen"
President