| Tue 3 Jun 2008, 8:25 | | BCD - BRC DiamondCore - Third Tender Sale Realises Us$2.5 Million |
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BCD
BCD
BCD - BRC DiamondCore - Third Tender Sale Realises Us$2.5 Million
BRC DIAMONDCORE LTD.
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: BCD & ISIN Number: CA05565C1095
("BRC DiamondCore" or "the Company")
BRC DIAMONDCORE: THIRD TENDER SALE REALISES US$2.5 MILLION
77.34 Carat Silverstreams Diamond Sells for US$904,724;
13.65 Carat Silverstreams Diamond Sells for US$518,180
Toronto, Canada and Johannesburg, South Africa - June 3, 2008: BRC
DiamondCore Ltd. (the "Company") (TSX - BCD; JSE - BCD) is pleased to
announce the results of its third tender sale for diamonds from its
Paardeberg East kimberlite and Silverstreams alluvial trial mining projects
in South Africa`s Northern Cape Province.
Highlights:
- 1,909.19 carats in total were sold for US$2,492,715.
- A 77.34 carat stone recovered from a Silverstreams high terrace channel
trench, where bulk sampling has been under way for the last month, was
sold for US$904,724 or US$11,698 per carat.
- The recovery of the 77.34 carat stone reinforces the size frequency
distribution plots of the diamond population recorded by the Company for
the various sampling trenches; indicates a plot typical of a Middle
Orange deposit; and confirms the presence of large diamonds in the
distribution.
- A 13.65 carat stone recovered at Silverstreams sold for US$518,180 or
US$37,962 per carat.
- The tender demonstrated continued strong average value (US$390.90 per
carat) for the product from the PK5 kimberlite at Paardeberg East, where
further geophysical work and delineation drilling is being undertaken.
- As a result of the exploration results at Silverstreams, the
metallurgical capacity will be increased by 50%, to deliver an expected
proportional increase in production.
- A 57% increase to US$2,511.19 per carat has been realized in the average
value for all diamond product at Silverstreams since inception of
sampling.
- The average value for all diamonds recovered from Paardeberg East PK 5
since inception of sampling is US$381.06 per carat.
The diamond analysis data, independent diamond valuations and price received
for the tender will be used to underpin the economic metrics of both
projects.
The services of an independent diamond consultant, Mr. Ramon Ferraris of QTS-
Kristal Dinamika, are retained to audit the bulk sampling plants, bulk
sampling process and diamond analysis of both projects. The tender diamonds
were prepared and overseen by Mr. Ferraris and an additional independent
technical diamond consultant to the Company, Mr. Maurice Barker.
Commenting on the prices received on the third tender, Company CEO Theo
Botoulas said: "The average prices achieved per carat for the entire run of
mine production for both Paardeberg East and Silverstreams of US$390.90 per
carat and US$6,065.89 per carat respectively are most encouraging.
"As a result of increased geological and grade confidence delivered by the
systematic sampling program at Silverstreams, as well as access to adequate
Eskom power, we will implement the first phase of doubling capacity. The
capacity of the rotary pan plant section will be increased by 50% with the
addition of two 16 ft rotary pans. Production is expected to increase
proportionally as the Silverstreams project gears up."
Photographs of diamonds referred to in this press release, and additional
diamonds recovered at Paardeberg East and Silverstreams, can be viewed on the
Company`s website at http://www.brc-diamondcore.com.
SILVERSTREAMS TENDER SALES - MIDDLE ORANGE RIVER ALLUVIAL PROJECT AREA
SITE TOTAL STONES AVG. SIZE TOTAL VALUE AVG. VALUE
WEIGHT (NUMBER) (CTS. PER (US$) (US$ PER
(CARATS) STN.) CARAT)
SILVERSTREAMS 307.74 102 3.02 1,866,716 6,065.89
The diamond analysis of the product from various trenches on the
Silverstreams bulk sampling site was undertaken by the independent
consultants on an ongoing basis. The sample size comprised 102 stones. The
size frequency distribution of the diamond population recovered from the
various sampling trenches indicates a plot typical of a Middle Orange River
deposit, which is characterized by the recovery of large diamonds.
In previous reports, the independent consultants predicted the recovery of a
40+ carat stone, based on the size frequency interval analysis and size
forecasting. The Company is pleased to announce the recovery of a 77.34 carat
unbroken stone. Accordingly, there has been a significant increase in the
average dollar per carat value of the Silverstreams deposit to US$2,511.19
per carat.
Using the prices achieved for the Silverstreams product on the open tender,
the Silverstreams run of mine production for the tender is valued at
US$6,065.89 per carat. Of note, the 77.34 carat stone equals 25.1% of the
weight and 48.5% of the value of the parcel. This stone sold for US$11,698
per carat.
Other special stones (+10.8 cts) included:
- 13.65 carat - D Colour dodecahedron, which sold for US$37,962 per carat.
- 11.96 carat - Fancy Yellow dodecahedron, which sold for US$11,202 per
carat.
- 16.56 carat - Off White octahedron/dodecahedron, which sold for US$7,059
per carat.
The Company confirms that the full run of mine product is represented in this
tender and no diamonds were removed for beneficiation or other purposes.
PAARDEBERG EAST TENDER SALES - KIMBERLITE BULK SAMPLING PROJECT AREA PK5
KIMBERLITE BODY
SITE TOTAL STONES AVG. SIZE TOTAL VALUE AVG.
WEIGHT (NUMBER) (CTS. PER (US$) VALUE
(CARATS) STN.) (US$ PER
CARAT)
PAARDEBERG 1,601.45 4,302 0.37 625,999 390.90
EAST - PK5
The ongoing diamond analysis of the various PK5 samples, representing
distinct kimberlite facies, continued to be undertaken by independent
consultants. The PK5 size frequency distribution for the samples in this
tender plotted is similar to the last samples, indicating the continuous
nature of the ore body. However, the average stone size has increased
slightly to 0.37 carats per stone from 0.35 carats per stone for previous
samples. The forecasting plots indicate that PK5 has the potential of
recovering special stones (+10.8 cts). This has been reinforced by the
recovery of an 18.36 carat stone. The stone sold for US$7,307 per carat.
The quality of diamonds produced from the PK5 samples has been exceptional,
as indicated by the high average value achieved of US$390.90 per carat.
Besides the 18.36 carat stone, three other high value stones greater than 5
carats were sold:
- 9.11 carat - White irregular dodecahedron, which sold for US$11,618 per
carat.
- 7.15 - Light Yellow dodecahedron, which sold for US$3,349 per carat.
- 5.34 carat - White dodecahedron, which sold for US$2,505 per carat.
The Company confirms that the full run of mine product is represented in this
tender and no diamonds were removed for beneficiation or other purposes.
Kimberley Process: Chain of custody and diamond control
Mr. Ferraris, working in conjunction with Company security officials, was
mandated to design and develop a chain of custody process and an effective
diamond control process for Company diamond production. This process has been
constructed in a manner that complies with international best practices and
the requirements of the Kimberley Process. Mr. Ferraris is responsible for
auditing this process as well as for providing technical expertise with
regards to the diamond product. Mr. Ferraris has 30 years` experience in the
rough diamond industry, including working for both De Beers and RTZ.
The Company maintains an inventory of diamond product from its operations
which are sold as the diamond analysis per sample is concluded. Technical
data with respect to the diamond populations per deposit has been recorded
and analysed by independent diamond consultants.
Additional information with respect to the Paardeburg East and Silverstreams
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.
Qualified Person
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.
03 June 2008
Johannesburg
Sponsor
River Group
Date: 03/06/2008 08:25:00 Produced by the JSE SENS Department.
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