| Tue 4 Mar 2008, 17:04 | | BCD - BRC Diamondcore Open Tender Sale Achieves Di |
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BCD
BCD
BCD - BRC Diamondcore Open Tender Sale Achieves Diamond Values At Paardeberg
East Kimberlite And Silverstreams Alluvial Bulk Sampling Sites At Us$200 And
Us$1,446 Per Carat Respectively
BRC DIAMONDCORE LTD.
(a Canadian corporation)
(Corporation number: 627115-4)
Share Code on the JSE Limited: BCD
Share Code on the Toronto Stock Exchange: BCD
ISIN: CA05565C1095
BRC DIAMONDCORE OPEN TENDER SALE ACHIEVES DIAMOND VALUES AT PAARDEBERG EAST
KIMBERLITE AND SILVERSTREAMS ALLUVIAL BULK SAMPLING SITES AT US$200 AND
US$1,446 PER CARAT RESPECTIVELY
Toronto, Canada and Johannesburg, South Africa - March 4, 2008 - BRC
DiamondCore Ltd. (the "Company") (TSX - "BCD"; JSE - "BCD") is pleased to
announce the results of tender sales conducted on February 29, 2008 to
confirm valuations of the diamond product derived from its Paardeberg East
kimberlite and Silverstreams alluvial bulk sampling project sites in South
Africa.
The highlights of the tender sales included the following:
- the Silverstreams "run of mine" production is valued at US$1,446 per
carat. The "special stones" (+10.8 carats in size) totalled 50.46
carats (comprising 7% by weight) and achieved a total value of
US$457,707 (comprising 46% by value);
- the special stones at Silverstreams constituted a 12.26 Carat stone - D
Colour Cleavage, which sold for US$15,175 per carat; a 13.53 Carat
stone - White Cleavage, which sold for US$7,960 per carat and a 24.67
Carat stone - Light Yellow Dodecahedron, which sold for US$6,405 per
carat;
- the Paardeberg PK1-East average value was US$204 per carat, which has a
high level of confidence due to the sample size; and
- in total, 4,050.43 carats were sold for approximately US$1.667
million.
SILVERSTREAMS TENDER SALES - MIDDLE ORANGE RIVER ALLUVIAL PROJECT AREA
SITE TOTAL STONES AVG SIZE TOTAL AVG VALUE
WEIGHT (NUMBER) (CTS PER VALUE (US$ PER
(CARATS) STN) (US$) CARAT)
SILVERSTREAMS 688.26 455 1.51 995,150 1,446
The diamond analysis of the product from various trenches on the
Silverstreams bulk sampling site was undertaken by independent consultants
on an ongoing basis during the final quarter of 2007. The sample size
comprised 455 stones and the size frequency distribution of the diamond
population recovered from the various sampling trenches indicated a plot
typical of a Middle Orange River deposit which is characteristic of the
recovery of large diamonds.
The analysis by the independent consultants of the cumulative number of
stones in the sample versus the lower critical size plot of the +2 carat
(plus two carat) diamonds indicated that the recovery of a stone within the
deposit of +40 carats is likely. If a special stone of +40 carats is
recovered, the average value of the diamond population recovered at
Silverstreams is expected to increase significantly to the US$2,000 per
carat range.
As reported previously by the Company`s subsidiary, Diamond Core Resources
Limited, diamonds recovered at Silverstreams over a three month period by a
contractor during 2003 included a 65.8, 50.1, 28.8, 13.17 and 12.13 carat
stones, with an average stone size of 3.5 carats, and which sold for an
average price in the order of US$2,500 per carat. The above five stones
correspond with the size frequency distribution plot of the diamond
population which is being independently constructed by the Company.
Using the prices achieved for the Silverstreams product on the open tender,
the Silverstreams "run of mine" production is valued at US$1,446 per carat.
The "special stones" (+10.8 carats in size) totalled 50.46 carats
(comprising 7% by weight) and achieved a total value of US$457,707
(comprising 45% by value).
The special stones constituted a:
- 12.26 Carat stone - D Colour Cleavage, which sold for US$15,175 per
carat.
- 13.53 Carat stone - White Cleavage, which sold for US$7,960 per carat.
- 24.67 Carat stone - Light Yellow Dodecahedron, which sold for US$6,405
per carat.
The Silverstreams sampling plant comprises a primary 670 tph trommel screen,
magnetic separations to remove banded ironstone, and four 16 foot rotary pan
plants. Concentrate from the rotary pans is delivered to a 50 tph Bateman
Dense Media Separation ("DMS") unit. The final recovery unit consists of
four Flow Sort x-ray machines, three Bateman GB 1000 automatic grease belts,
and a "hands-off" final recovery. The +2mm to -32mm fraction is treated
through the rotary pan plant and the DMS section; the +32mm to -50mm
fraction is delivered separately to an attritioner followed by GB 1000
grease belts.
PAARDEBERG EAST TENDER SALES - KIMBERLITE BULK SAMPLING PROJECT AREAS PK1
AND PK3 KIMBERLITE BODIES
SITE TOTAL STONES AVG SIZE TOTAL AVG
WEIGHT (NUMBER) (CTS PER VALUE VALUE
(CARATS) STN) (US$) (US$ PER
CARAT)
PAARDEBERG 276.69 1,330 0.21 42,783 155
EAST- PK3
PAARDEBERG 121.69 550 0.22 26,482 218
EAST- PK1
WEST
PAARDEBERG 2,963.94 8,546 0.35 603,559 204
EAST - PK1
EAST
TOTAL 3,362.32 10,426 0.32 672,824 200.11
The diamond analysis of the product from various sampling positions on the
2.2ha PK1 kimberlite pipe, representing distinct kimberlite facies, as well
as the ongoing sampling operations at PK3, was undertaken by independent
consultants on an ongoing basis during the final quarter of 2007.
The PK1 East and PK1 West areas represent two distinct and adjacent lobes
within the PK1 kimberlite body. PK3, where sampling operations are
continuing, is a separate kimberlite pipe 3.3 ha in size and some five
kilometres to the South East of the PK1 pipe.
Although the diamond sample sizes of PK3 and PK1-West were smaller than the
PK1-East sample, size frequency distribution curves for the diamond samples
and populations on all three sampling areas were plotted. PK3 and PK1-East
plotted curves parallel to each other, with PK3 plotting to the left of PK1-
East, indicating a deposit containing a diamond population of smaller
average stone size.
The size frequency distribution for PK1-West plotted closer to the smaller
size fraction of PK3 and to the coarser size fraction present in PK1-East. A
detailed analysis of shape, colour, stress and fluorescence of the diamonds
present in these kimberlites is being undertaken.
The cumulative number of stones versus lower critical size plot of the +2
carat diamonds of the Paardeberg East deposits suggests that the prospects
for recovering the complete fraction of larger diamonds during the bulk
sampling process is good.
The PK1-East average value of US$204 per carat has a high level of
confidence due to the sample size. The diamond sample size of 121.69 carats
for PK1-West was smaller as a result of the lower grades prevalent and some
additional stones may be recovered from this area to supplement and confirm
the data generated to date. Sampling operations at PK3 are continuing. The
independent consultants continue to develop a diamond value model for
Paardeberg East and will update the database as additional data becomes
available from sales and valuations.
The Paardeberg East geological sampling plant comprises a 50 tph Bateman DMS
Module. The front end, with primary crushing (to -55mm), secondary re-crush
(to -18mm) and tertiary re-crush (to-13mm) circuits, has a 37 tph capacity.
DMS feed is screened at 25 mm. The final recovery consists of two Flow Sort
X-Ray Machines, an attritioner, two Bateman GB 800 grease belts and a "hands-
off" final recovery.
The diamond analysis data, independent diamond valuations and prices
received on the open tender conducted by the Company will be used to
underpin the economic metrics for the conceptual study on the PK1 kimberlite
pipe at Paardeberg East.
Both the Paardeberg East and Silverstreams bulk sampling plants have been
configured for exploration purposes but can be utilized in a production
capacity should a decision be taken to do so. Both sampling plants have been
equipped with weightometers in order to make accurate measurements of
tonnages treated. Both plants have been configured to optimize recoveries
from the unique size frequency curves of each deposit.
The services of an independent diamond consultant, Mr. Ramon Ferraris of QTS-
Kristal Dinamika of Kimberly, South Africa were retained to audit the bulk
sampling plants, bulk sampling process and diamond analysis on the
Paardeberg East and Silverstreams sites. The tender was overseen by Mr.
Ferraris and an additional independent diamond consultant to the Company,
Mr. Maurice Barker.
Commenting on the process, Company President Dr. Mike de Wit said: "The
ability of the Company to conduct its own bulk sampling programs to
determine grade, size frequency distribution and diamond value is critical
to the ongoing exploration process of identifying economically viable
diamond deposits. The Paardeberg East plant will be used to sample
potentially diamondiferous kimberlite targets of interest to the Company in
the region. The Silverstreams bulk sampling/trial mining facility will be
applied in identifying promising alluvial opportunities along the Middle
Orange River area."
Commenting on the prices received on the tender, Theo Botoulas, Company CEO,
said: "The prices achieved at both Paardeberg East and Silverstreams are
very encouraging and much higher than expected. These valuations will be
used in the conceptual study at the PK1 pipe at Paardeberg East and the
evaluation of the Silverstreams project. Our goal is to achieve sustainable
sales from economically viable deposits by creating a foundation of sound
technical and economic data."
Additional information with respect to the Paardeburg East and Silverstream
projects is contained in the technical report prepared by Venmyn Rand (Pty)
Limited, dated July 31, 2007 and entitled "National Instrument 43-101
Technical Report Prepared on the Mineral Assets of Diamond Core Resources
Limited in the Northern Cape and Free State Provinces, South Africa." A copy
of this report can be obtained from SEDAR at www.sedar.com.
Kimberley Process: Chain of Custody and Diamond Control
Mr. Ferraris, working in conjunction with the Company`s security officials,
was mandated to design a Chain of Custody process for Company diamond
production and develop an effective diamond control process. This process
has been constructed to comply with international best practice and the
requirements of the Kimberley Process. Mr. Ferraris is responsible for
auditing this process and providing technical expertise with regards to the
diamond product. He has 30 years experience in the rough diamond industry,
including working for both De Beers and RTZ.
Dr. Mike de Wit, President of the Company, is the "qualified person" (as
such term is defined in National Instrument 43-101) who supervised the
preparation of and is responsible for the technical information in this
press release.
BRC DiamondCore Ltd. is an African-focused diamond explorer active in South
Africa and the Democratic Republic of the Congo (the "DRC"). Led by a
management team with extensive experience in diamond exploration and mine
development, the Company has a broad spectrum of projects ranging from
advanced stage trial mining operations through grass-roots exploration. The
Company`s projects comprise both prospective alluvial gravels and primary
kimberlite targets. The Company works in a systematic and responsible
manner to discover, assess and develop diamond resources for the benefit of
its shareholders and local stakeholders.
For further information, please visit our website, www.brc-diamondcore.com,
or contact:
In Toronto: Martin D. Jones, Vice President, Corporate Development, at (416)
366-2221 or 1-800-714-7938.
In Johannesburg: James Duncan, Russell & Associates, at 27 11 880-3924.
Johannesburg
04 March 2008
Sponsor
River Group
Date: 04/03/2008 17:04:15 Produced by the JSE SENS Department.
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