Post by Franko10 ™ on Sept 16, 2004 10:30:02 GMT -5
DIAGEM announces that IBAMA (Brazilian Institute for the Environment and Renewable Natural Resources) is contesting the validity of the experimental mining operations on the Company's Fazenda Chicoria Resource Block #1, Juina Diamond Province, Mato Grosso State, Brazil. The Company and its Brazilian advisors believe the Company to be in complete compliance with all regulatory requirements and are vigorously pursuing a settlement of the regulatory action. To this end, official letters confirming the Company's good standing and operational status are being prepared by both the DNPM (National Department of Mineral Production) and FEMA (State Department for the Environment). The DNPM, which is the primary regulatory agency responsible for mining in Brazil, has indicated that it fully supports Diagem's position. Until the regulatory proceeding has been satisfactorily addressed, the Company has temporarily suspended its operations on Resource Block #1. Operations on the balance of the Company's extensive holdings are not affected, and bulk sampling of new potential resources will continue. As well, the Company will proceed to implement major improvements to the mining infrastructure which have been planned for some time and which are scheduled to be implemented during the Christmas vacation period.
These major improvements involve a $500,000 capital expenditure program which will improve the performance of the mining and processing equipment, double its throughput, capacity and production, and make it able to operate sixteen hours a day, using two shifts. The anticipated increase in production requires that a program of recruiting and training of additional personnel be instituted in order to adequately staff the expanded operations at the mining, processing and Sortex sites. Accordingly, training and selection of personnel for a second shift, acquisition and upgrading of equipment, and bulk sampling of new potential resources will continue through to the end of the year.
A new systematic mining plan is also being implemented in order to accommodate the anticipated large increase in production. The new plan is expected to address many of the challenges related to reject disposal and land restoration. As a consequence mining costs will be reduced, resulting in the ability to mine lower grades of material as the volume of throughput increases. As well, the plant is being moved to a more central location to enable its feeding with diamondiferous gravels from two or three different panels concurrently so as to facilitate grade control.
The Company anticipates that operations with greatly improved rates of production will start in mid January.
The technical content of this news release has been approved by Dr. Mousseau Tremblay, of Williamstown, Ontario, a Qualified Person, President, CEO and Director of Diagem International Resource Corp.
Diagem is a diamond exploration company holding significant diamond interests in Brazil and Canada. In Brazil it owns 20 properties totalling 130,000 hectares, in addition to the Joint Venture Property 1000, containing extensive diamondiferous gravels and 8 kimberlite pipes, located within the Juina Diamond Province, historically Brazil's largest diamond producing area. In Canada, through its interest in KWG Resources Inc. (TSXV: KWG), Diagem has an indirect interest in diamond exploration projects in the James Bay Lowlands and Wawa areas, in addition to the McFauld's Lake massive sulphide discovery, in Ontario.
For and on behalf of
DIAGEM International Resource Corp.
"Dr. Mousseau Tremblay"
President
These major improvements involve a $500,000 capital expenditure program which will improve the performance of the mining and processing equipment, double its throughput, capacity and production, and make it able to operate sixteen hours a day, using two shifts. The anticipated increase in production requires that a program of recruiting and training of additional personnel be instituted in order to adequately staff the expanded operations at the mining, processing and Sortex sites. Accordingly, training and selection of personnel for a second shift, acquisition and upgrading of equipment, and bulk sampling of new potential resources will continue through to the end of the year.
A new systematic mining plan is also being implemented in order to accommodate the anticipated large increase in production. The new plan is expected to address many of the challenges related to reject disposal and land restoration. As a consequence mining costs will be reduced, resulting in the ability to mine lower grades of material as the volume of throughput increases. As well, the plant is being moved to a more central location to enable its feeding with diamondiferous gravels from two or three different panels concurrently so as to facilitate grade control.
The Company anticipates that operations with greatly improved rates of production will start in mid January.
The technical content of this news release has been approved by Dr. Mousseau Tremblay, of Williamstown, Ontario, a Qualified Person, President, CEO and Director of Diagem International Resource Corp.
Diagem is a diamond exploration company holding significant diamond interests in Brazil and Canada. In Brazil it owns 20 properties totalling 130,000 hectares, in addition to the Joint Venture Property 1000, containing extensive diamondiferous gravels and 8 kimberlite pipes, located within the Juina Diamond Province, historically Brazil's largest diamond producing area. In Canada, through its interest in KWG Resources Inc. (TSXV: KWG), Diagem has an indirect interest in diamond exploration projects in the James Bay Lowlands and Wawa areas, in addition to the McFauld's Lake massive sulphide discovery, in Ontario.
For and on behalf of
DIAGEM International Resource Corp.
"Dr. Mousseau Tremblay"
President