Post by Franko10 ™ on Sept 16, 2004 9:32:49 GMT -5
Kimberlite Testing
The Company is pleased to provide the following update on its diamond projects in the Juina Diamond Province, Mato Grosso State, Brazil.
Chicoria Creek Area
The work program on the Chicoria Creek area, announced January 9, 2002, is progressing as expected. Line cutting, geological mapping of the area and shallow drilling of the Acori 2 Kimberlite Pipe has been completed in the last three weeks.
The program of gravel delineation throughout the Chicoria Creek area, characterizing the gravel nature and the heavy mineral content by excavating pits, is well underway. The objective of this process is to identify blocks of like gravels for representative bulk sampling, since not all areas carry gravels and not all gravels carry economic quantities of diamonds. In the last week of January, 45 pits were excavated starting with the gravels (eluvial) that cover the Acori 2 kimberlite pipe. Testing this area has been prioritized because these gravels are expected to be enriched as a result of their proximity to the potential primary source. Preliminary bulk sampling will be simultaneously conducted on the kimberlite pipe.
Acori 2 kimberlite Pipe
The 'pear shaped'surface area of this Kimberlite pipe measuring 8 hectares has been delineated by shallow auger drilling. It is approximately 400 metres long by 200 metres across. Small parts of the heavily weathered kimberlite are clearly visible at surface, exposed by the garimpeiro workings of the resident farmer, but it is in general covered by 1 to 5 metres of soil and eluvial cover. A 314 carat gem diamond was acquired from this farmer by Diagem in 1996, and is believed to have come from these very workings.
Dona Maria Area
While the necessary gravel delineation work is being completed on the Chicoria Creek area, the Moveable and Pilot plants have continued to complete bulk testing on the Dona Maria property.
The latest results from bulk sampling in the Dona Maria area as follows:
Moveable plant Bulk sample #
Diamonds
Carats
Diamond bearing
gravel
processed, m3*
Location
ABT 8/213
127
54.70(1)
160
Sorrisso, terrace
ABT 9/213
4
0.58
114
Sorrisso, terrace
ABT 10/213
0
0
59
Sorrisso, terrace
(1) Included are two gem quality diamonds of 4 and 8 carats
Pilot plant Bulk sample #
Diamonds
Carats
Diamond bearing
gravel
processed, m3*
Location
PP-02/213 (19/1)
87
15.76
109
Dona Maria, tailings
PP-02/213 (26/1)
221
47.09
332
Dona Maria, tailings
PP-02/213 (2/2)
134
38.28
243
Dona Maria, tailings
* 'Diamond bearing gravel processed' is defined as the gravel layer plus 20 to 30 centimetres of Saprolite (weathered bedrock) below the gravels.
Update on Diamond Valuations
Natural Diamonds Corp. of Antwerp have confirmed that a 16 carat gem diamond, recovered from bulk sampling on the Dona Maria property, is a rare and much sought after Type II diamond, doubling its estimated value to US$1,000 per carat.
Property Management
Diagem has made priority applications for two properties contiguous to its current properties, totaling 20,000 hectares. It is understood that these properties contain two undeveloped kimberlitic bodies identified by Rio Tinto in the early 1990's. In addition, preliminary assessment work on these properties demonstrates their potential to host sizeable diamond bearing gravel deposits.
In the last quarter of 2002, Diagem completed assessment work on four of its properties (Mineral Rights), covering 39,000 hectares in the Juina Diamond Province. An application has been made to the DNPM (National Department of Mineral Production) to extend for three years the term of three properties covering 27,000 hectares. The Company will not be pursuing further work on the balance of the 12,000 hectares at this time.
Audiences with new Secretaries of Mining and Environment
In January, Diagem representatives met with the newly appointed Secretary of Mining and Secretary of the Environment in Brazil. Both parties showed a keen interest in the Company's activities and objectives. The meetings, widely attended by the media and other governmental agencies, emphasized the respective ministries willingness to work with the Company in achieving its goals.
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 Corp.
For and on behalf of
DIAGEM International Resource Corp.
"David Cohen"
President