Owner
Post by Franko10 ™ on Sept 16, 2004 9:19:01 GMT -5
The Company's bulk testing program has recovered 781 diamonds for a total of 188 carats, with 24 diamonds over one carat in size, since the last update (October 10, 2002), from property 213 in the Juina Diamond district, Mato Grosso State, Brazil. The testing has covered both terrace (or eluvial-colluvial) and alluvial (ancient river channel) deposits located 5 kms downstream from 4 diamondiferous kimberlite pipes which the Company intends to test in the near future.
The results from the testing of the terraces are proving to be particularly promising, returning grades of over one carat per cu.m. of gravel. The area now being tested is part of a very large deposit which has been measured, one year ago, to contain approximately 1 million cubic meters of gravels. It extends along approximately 8 kms of river and is on average 400 meters wide. Geological interpretation suggests that a number of these deposits exist within the Company's property portfolio.
The very moderate overburden, generally less than two meters, and a gravel thickness averaging 30 centimeters means that production costs are expected to be very low. A systematic sampling program is currently underway in order to further detail the deposit ahead of mining. As a beta project the pilot plant (25 cu.m. per hour) will now be fed materials from this deposit. The operating costs of this test mining are estimated at US$25,000 a month which provides for a very low breakeven point, equating to approximately 500 carats a month, dependant on the continued recovery of larger, gem quality stones, which have been recovered in tests to date. If testing demonstrates the existence of a sustainable average grade this deposit may prove to be very important economically.
Bulk test results:
Test#
Diamonds
Carats
Estimated
Cu.m. of
gravels
Deposit type
ABT-02/213c
109
14.5
7.84
Alluvials
ABT-03/213
167
20.3
n/a
Garimpeiro tailings
ABT-04/213
212
56.7
77.86
Terraces
ABT-005/21
180
57.45
80
Terraces
ABT-06/213
113
39.65
30.65
Terraces
781
188.6
Testing of the alluvial deposit discussed in the previous update has been put on hold for the time being whilst the Company concentrates its efforts on this promising terrace deposit.
Joint venture property 1000
Work on the joint venture property has been suspended following an 'embargo'placed on the joint venture by IBAMA the Brazilian federal organization that regulates renewable resources. This prevents the joint venture from conducting further work at this time. This embargo was placed without notice or warning, while the Joint Venture was operating in full compliance with an operating permit previously issued by IBAMA. The Company therefore views this IBAMA action as unwarranted. The Company and its joint venture partners are protesting this action, and are seeking ways to remedy this situation in short order. In the interim the joint venture property has been placed on care and maintenance. This particular property is unique in that due to its close proximity to an ecological reserve it is the only one of the Company's property interests, that falls under the jurisdiction of IBAMA.
The technical information in this news release has been approved by Dr. Mousseau Tremblay, of Williamstown, Ontario, a Qualified Person, and a Director of Diagem International Resource Corporation.
For and on behalf of
DIAGEM International Resource Corp.
"David Cohen"
President
The results from the testing of the terraces are proving to be particularly promising, returning grades of over one carat per cu.m. of gravel. The area now being tested is part of a very large deposit which has been measured, one year ago, to contain approximately 1 million cubic meters of gravels. It extends along approximately 8 kms of river and is on average 400 meters wide. Geological interpretation suggests that a number of these deposits exist within the Company's property portfolio.
The very moderate overburden, generally less than two meters, and a gravel thickness averaging 30 centimeters means that production costs are expected to be very low. A systematic sampling program is currently underway in order to further detail the deposit ahead of mining. As a beta project the pilot plant (25 cu.m. per hour) will now be fed materials from this deposit. The operating costs of this test mining are estimated at US$25,000 a month which provides for a very low breakeven point, equating to approximately 500 carats a month, dependant on the continued recovery of larger, gem quality stones, which have been recovered in tests to date. If testing demonstrates the existence of a sustainable average grade this deposit may prove to be very important economically.
Bulk test results:
Test#
Diamonds
Carats
Estimated
Cu.m. of
gravels
Deposit type
ABT-02/213c
109
14.5
7.84
Alluvials
ABT-03/213
167
20.3
n/a
Garimpeiro tailings
ABT-04/213
212
56.7
77.86
Terraces
ABT-005/21
180
57.45
80
Terraces
ABT-06/213
113
39.65
30.65
Terraces
781
188.6
Testing of the alluvial deposit discussed in the previous update has been put on hold for the time being whilst the Company concentrates its efforts on this promising terrace deposit.
Joint venture property 1000
Work on the joint venture property has been suspended following an 'embargo'placed on the joint venture by IBAMA the Brazilian federal organization that regulates renewable resources. This prevents the joint venture from conducting further work at this time. This embargo was placed without notice or warning, while the Joint Venture was operating in full compliance with an operating permit previously issued by IBAMA. The Company therefore views this IBAMA action as unwarranted. The Company and its joint venture partners are protesting this action, and are seeking ways to remedy this situation in short order. In the interim the joint venture property has been placed on care and maintenance. This particular property is unique in that due to its close proximity to an ecological reserve it is the only one of the Company's property interests, that falls under the jurisdiction of IBAMA.
The technical information in this news release has been approved by Dr. Mousseau Tremblay, of Williamstown, Ontario, a Qualified Person, and a Director of Diagem International Resource Corporation.
For and on behalf of
DIAGEM International Resource Corp.
"David Cohen"
President
