| Thu 4 Sep 2008, 15:00 | | BCD - BRC Diamondcore - BRC Diamondcore sixth open tender of 1,351.13 carats |
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BCD
BCD
BCD - BRC Diamondcore - BRC Diamondcore sixth open tender of 1,351.13 carats
realises us$1,365,736
BRC DIAMONDCORE LTD.
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: BCD & ISIN Number: CA05565C1095
("BRC DiamondCore" or "the Company")
BRC DIAMONDCORE SIXTH OPEN TENDER OF 1,351.13 CARATS REALISES US$1,365,736
First production from third trial mining project, De Kalk
Toronto, Canada and Johannesburg, South Africa - September 4, 2008: BRC
DiamondCore Ltd. (the "Company") (TSX - BCD; JSE - BCD) is pleased to announce
that diamonds totaling 1,351.13 carats from the Company`s Silverstreams
alluvial, De Kalk alluvial and Paardeberg East kimberlite trial mining projects
in South Africa`s Northern Cape Province were sold at the Company`s sixth tender
and realised US$1,365,736.
This compares with US$992,555 realised from the sale of stones totalling 959.46
carats from the Silverstreams and Paardeberg East projects at the Company`s
previous tender.
The latest tender includes, for the first time, stones produced from the
Company`s De Kalk alluvial trial mining project. De Kalk is the site of the
discovery of the first diamond in South Africa, the 24-carat Eureka, in 1866.
HIGHLIGHTS
Silverstreams alluvial
- 424.66 carats sold - up 50% on previous tender
- Average price of US$2,090 per carat achieved
- 61.21 carat white irregular dodecahedron sold for US$6,836 per carat.
- 37.30 carat commercial white octahedron sold for US$4,694 per carat.
Paardeberg East kimberlite
- 906.98 carats sold - up 34% on previous tender
- average price of US$418 per carat achieved - up 12% on previous tender
- 16.35 carat white irregular shape sold for US$12,842 per carat
De Kalk alluvial
- 19.49 carats sold at average price of US$5,079 per carat
- 8.81 carat intense fancy yellow dodecahedron sold for US$11,063 per carat
Company President Dr. Mike de Wit commented: "We are very pleased to have sold
more carats and to have increased turnover at a time when the diamond market has
softened somewhat, due both to an expected correction from the very high price
levels enjoyed earlier in the year and to cyclical factors such as the European
holidays.
"We have achieved good prices for the special stones sold in the latest tender,
and are particularly encouraged by the sale for US$11,063 per carat of the 8.81
carat intense fancy yellow dodecahedron recovered at our new De Kalk trial
mining project."
The diamond analysis data, including independent diamond valuations and prices
received on the open tender conducted by the Company, are being used to underpin
the economic metrics of the Silverstreams and Paardeberg East projects.
The services of an independent diamond consultant, Mr. Ramon Ferraris of QTS-
Kristal Dinamika, are retained to audit the bulk sampling plants, bulk sampling
process and diamond analysis on all three sites. The tender was overseen by Mr.
Ferraris and an additional independent diamond consultant to the Company, Mr.
Maurice Barker.
SILVERSTREAMS TENDER SALES - MIDDLE ORANGE RIVER ALLUVIAL PROJECT AREA
SITE TOTAL STONES AVG. SIZE TOTAL AVG. VALUE
WEIGHT (NUMBER) (CARATS VALUE (US$ PER
(CARATS PER (US$) CARAT)
) STONE)
SILVERSTREAMS 424.66 187 2.27 887,58 2,090
7
Silverstreams `special stones` (+10.8 carats in size) totaled 124.97 carats
(comprising 29% by weight) and achieved a value of US$655,896 (comprising 74% by
value).
Besides the 61.21 and the 37.30 carat stones referred to under "Highlights"
above, the Silverstreams `special stones` included a 13.39 carat white
octahedron, which sold for US$2,416 per carat, and a 13.08 carat commercial
white octahedron, which sold for US$2,301 per carat.
Other high value stones from Silverstreams were a 10.02 carat light fancy yellow
dodecahedron, which sold for US$2,370 per carat, a 9.79 fancy yellow
dodecahedron, which sold for US$4,329 per carat, an 8.84 carat white
dodecahedron, which sold for US$2,295 per carat, and a 3.47 carat white
irregular dodecahedron, which sold for US$2,718 per carat.
The diamond analysis of the product from various trenches on the Silverstreams
bulk sampling site was undertaken by the independent consultants on an ongoing
basis during 2008. The sample size comprised 187 stones and the size frequency
distribution of the diamond population recovered from the various sampling
trenches indicated a plot typical of a Middle Orange River deposit. Such
deposits tend to be characterized by the recovery of large diamonds.
Specifically, the current size frequency distribution of Silverstreams is
plotting to the right of the consolidated graph of the deposit. If production
remains in the same geological area there is a high probability of more coarse
diamonds of plus 50 carats being found. This opinion is also supported by the
current discovery of the 61.21 carat diamond sold in this tender.
PAARDEBERG EAST TENDER SALES - KIMBERLITE BULK SAMPLING PROJECT AREAS PK5, PK1
EAST, PK1 WEST AND PK2 KIMBERLITE BODIES
SITE TOTAL STONES AVG. SIZE TOTALV AVG. VALUE
WEIGHT (NUMBER) (CARATS ALUE (US$ PER
(CARATS) PER (US$) CARAT)
STONE)
PAARDEBERG 906.98 2,659 0.34 379,18 418
EAST- PK5 5
Paardeberg East PK5 "special stones" (+10.8 carats in size) totaled 58.89 carats
(comprising 6% by weight) and achieved a value of US$236,817 (comprising 62% by
value).
Besides the 16.35 carat stone referred to under "Highlights" above, these
included a 30.28 carat industrial, a 12.26 carat commercial white dodecahedron,
which sold for US$2,120 per carat, and a 9.19 carat commercial white
dodecahedron, which sold for US$2,176 per carat.
The PK5 kimberlite body size frequency distribution plotted for samples in this
tender is similar to that plotted for samples in the previous tender, indicating
the consistency of the mineralisation of the ore body.
The quality of diamonds produced from the PK5 samples continues to be of high
gem content, as indicated by the high average value of US$418 per carat
achieved.
The ongoing analysis of the diamonds from the various PK5 samples, representing
distinct kimberlite facies, continues to be undertaken by independent
consultants.
The size frequency distribution specifically for the PK5 sample is plotting to
the right, or in the coarser fraction of the consolidated graph of the PK5
deposit. This is supported by the discovery of the 30.28 carat industrial
diamond.
DE KALK TENDER SALES - MIDDLE ORANGE RIVER ALLUVIAL PROJECT AREA
SITE TOTAL STONES AVG. SIZE TOTAL AVG. VALUE
WEIGHT (NUMBER) (CARATS VALUE (US$ PER
(CARATS PER (US$) CARAT)
) STONE)
DE KALK 19.49 12 1.62 98,964 5,079
While the De Kalk sample was small, it contained a 8.81 carat intense fancy
yellow dodecahedron that sold for US$11,063 per carat. This added weight to the
run of mine average price of US$5,079 per carat.
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. These processes have
been constructed to comply with international best practices and the
requirements of the Kimberley Process. Mr. Ferraris is responsible for auditing
these processes as well as for providing technical expertise with respect to the
diamond product. Mr. Ferraris has 30 years` experience in the rough diamond
industry, including working for both De Beers and RTZ.
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.
Additional information with respect to the Paardeburg East, Silverstreams and De
Kalk 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.
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.
Note to editors: Photographs of the special diamonds mentioned in this press
release, as well as additional diamonds recovered at Paardeberg East and
Silverstreams, can be viewed later today in the photo gallery section of the
Company`s website, http://www.brc-diamondcore.com.
For further information, please visit our website, www.brc-diamondcore.com, or
contact:
In Toronto:
Martin D. Jones, Vice President, Corporate Development, (416) 366-2221 or 1-800-
714-7938.
In Johannesburg:
James Duncan, Russell and Associates, +27 11 880-3924
03 September 2008
Johannesburg
Sponsor
River Group
Forward-Looking Statements: This press release contains forward-looking
statements. All statements, other than statements of historical fact, that
address activities, events or developments that the Company believes, expects or
anticipates will or may occur in the future (including, without limitation,
statements relating to diamond prices, future diamond recoveries and sales,
future production, exploration results, potential mineralization and the
Company`s plans with respect to the exploration and development of its
properties) are forward-looking statements. These forward-looking statements
reflect the current expectations or beliefs of the Company based on information
currently available to the Company. Forward-looking statements are subject to a
number of risks and uncertainties that may cause the actual results of the
Company to differ materially from those discussed in the forward-looking
statements, and even if such actual results are realized or substantially
realized, there can be no assurance that they will have the expected
consequences to, or effects on the Company. Factors that could cause actual
results or events to differ materially from current expectations include, among
other things, the possibility that future exploration results will not be
consistent with the Company`s expectations, changes in equity markets, changes
in diamond markets, foreign currency fluctuations, inflation, political
developments in South Africa or the DRC, changes to regulations affecting the
Company`s activities, uncertainties relating to the availability and costs of
financing needed in the future, delays in obtaining or failure to obtain
required project approvals, the uncertainties involved in interpreting
geological data and the other risks involved in the diamond exploration
business. Any forward-looking statement speaks only as of the date on which it
is made and, except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or
otherwise. Although the Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty therein.
Date: 04/09/2008 15:00:03 Produced by the JSE SENS Department.
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