Vaaldiam Mining Inc.: High Diamond Value of US$338 Per Carat at Brauna
02 Dezember 2010 - 1:00PM
Marketwired
Vaaldiam Mining Inc. ('Vaaldiam' or the 'Company') (TSX: VAA) is
pleased to report that two independent diamond valuation
consultants valued 1,013.75 carats ('cts') of rough diamonds
recovered from the south lobe of Vaaldiam's Brauna 3 kimberlite
pipe ('B3') at an average value of US$338 per carat. The south lobe
bulk sample comprised 4,158 dry tonnes of kimberlite with an
average recovered grade of 24.4 cts per hundred tonnes ('cpht') and
an average stone size of 0.21 cts per stone. The average global
price for rough diamonds is about US$70 per carat. The Brauna
property is in Bahia State, Brazil.
The two independent, internationally recognized diamond
valuation and consulting companies were Diamond Counsellor
International ('DCI') of London, U.K., and International Economic
Strategy ('IES') of Antwerp, Belgium. The diamonds were sieved and
sized to DTC standards and used November prices of rough diamond
sales in Antwerp.
B3 - South Sample Diamond Valuation Results
IES valued the parcel at US$338.71 per carat. It said the price
"is very high for a kimberlite and would rank Brauna as one of the
best mines in the world". IES suggested a bench mark price of
US$330 per carat as its projection of the average sales price of
future production from the south lobe. IES said "the overall
mixture in colour and quality make this parcel very desirable and
highly marketable."
DCI valued the parcel at US338.44 per carat and suggested that a
range from US$335 to US$400 per carat could be expected. DCI noted
that "this is a good average price for a kimberlite" and that the
"south deposit contains a wide range of good quality diamonds. It
has a high per carat average price which should prove marketable
and profitable."
Project Overview
The two-hectare B3 pipe is located in easily accessible terrain
just 7 km south of the town of Nordestina, which provides the
project with excellent infrastructure, services and skilled
personnel. B3 is one of 22 kimberlite occurrences discovered so far
on the property. Vaaldiam has performed exploration work on only
five occurrences, including the Brauna 8 ('B8') kimberlite dike
situated 5 km north of the B3 pipe. Mini-bulk samples from this 4.5
metre-wide dike produced 170 diamonds weighing 19.37 cts from
approximately 46 dry tonnes, inferring a recovered grade of 42
cpht, and included a 7.97 carat white octahedron stone. The B8
occurrence is a vertically oriented kimberlite dike forming a 1,000
metre-long section of the northwest trending dike system. Recent
exploration conducted in the vicinity of the B8 dike has confirmed
that this dike is linked to the Brauna 21 occurrence. Mini-bulk
sampling of the one hectare Brauna 7 pipe, situated 1 km to the
east of the B3 pipe, resulted in the recovery of 30 diamonds with a
total weight of 3.87 carats from approximately 87 tonnes of
kimberlite with an estimated recovered diamond grade of 4.5
cpht.
Robert Jackson, President and CEO said "This is excellent for
our shareholders. Investors should note the high stone value, the
close proximity of these occurrences to each other and to
Nordestina and the potential to add more resources in easily
developed terrain."
Vaaldiam holds a 20% interest in the Brauna project. It can
increase its interest to 49% by paying its partners an estimated
amount of approximately US$6.7 million for costs incurred to
complete the bulk sample, which is expected to be completed in Q4
2010. At September 30, 2010 Vaaldiam had $11.2 million of cash.
This release has been reviewed by Katya Masun P.Geo., who is a
qualified person under National Instrument 43-101. For additional
information regarding Vaaldiam please visit www.vaaldiam.com.
Certain of the information contained in this news release
constitutes 'forward-looking statements' within the meaning of
securities laws. Such forward-looking statements, including but not
limited to those with respect to the prices of metals and minerals,
purchase payments, royalty payments, estimated future production
and estimated costs of future production involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements to be materially different
from any forecast results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include,
among others, the actual prices of metals and minerals, the actual
results of current exploration, development and mining activities,
changes in project parameters as plans continue to be evaluated, as
well as those factors disclosed in the documents of the Company
filed from time to time with the Ontario Securities Commission.
Contacts: Vaaldiam Mining Inc. Robert Jackson President and
Chief Executive Officer rjackson@vaaldiam.com www.vaaldiam.com