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Company Information for Brazilian Diamonds Ltd
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 AIM; BDY
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Company Statement
Brazilian Diamonds is a leading junior diamond exploration company, located in the state of Minas Gerais, which is preparing to develop Brazil's first kimberlite mine-Canastra 1.
The Company is well-recognized for its technical competence, with a strong and highly visible local presence and experienced management based in Brazil.
The Company is awaiting final approval before commencing the environmental licensing process for development of the Canastra 1 kimberlite body for which mine feasibility work has already been completed and the required Mines Department approvals are already in place. It is intended to bring Canastra 1 into production once this licensing process is completed.
The Company has recently acquired the Chapada Diamantina project in Bahia from De Beers which includes the diamondiferous Salvador 1 kimberlite. Plans are under-way to undertake a large bulk sample at Salvador 1 utilising a 15 tonne per hour DMS treatment plant, which is currently located at the Company's Santo Antonio do Bonito property.
The Company is able to achieve rapid turnaround on its exploration work as it has excellent infrastructure in Brazil including a fully operational laboratory for sample processing and a large and fully integrated exploration data base.
Current Operations
SERRA DA CANASTRA REGION
The Serra da Canastra Kimberlite Province in southwest Minas Gerais, Brazil has produced an estimated 2 million carats of diamonds since 1937 from small-scale artisan alluvial operations. The area is considered to be highly prospective for identifying kimberlites, the primary source rocks associated with these alluvial diamond occurrences.
With the acquisition of De Beers' portfolio in 2002, Brazilian Diamonds has a 100% interest in an extensive land position in this region with over 100,000 hectares under licence. The region is particularly known for its kimberlite prospects with numerous pipes having been identified, many of them untested.
CANASTRA 1
The Canastra 1 kimberlite pipe (approx. 1 ha in size) has already been bulk tested with the processing of approximately 20,000 tonnes of kimberlite which resulted in the recovery of more than 5,000 carats of gem quality diamonds. The completion of a feasibility study on Canastra 1 has confirmed that the project could become the first kimberlite in Brazil to be mined economically.
Trial mining of the Canastra 1 pipe is being planned in conjunction with the engineering from Gemcom Latin America, and is undergoing environmental permitting. Under Gemcom's conceptual study, Canastra 1 could produce 114,000 carats over a 4 year mine life. Trial mining will provide the necessary information to make the final mining decision, as well as produce approx 25,000 carats during its first year in operation.
The licensing process at Canastra 1 has been complicated by the potential expansion of a nearby National Park, and although there is every indication that a licence will be granted to mine Canastra 1, at this time it is not possible to accurately estimate the exact timeline for such a grant.
CANASTRA 8
Also located on the property, is the Canastra 8 pipe, much larger than Canastra 1; shown to be more than 20 21 hectares in size bu auger drilling and ground geophysics. Final approval is being sought to commence deep core drilling of this large body.
SANTO ANTONIO DO BONITO ALLUVIAL PROJECT
This project covers 7,600 hectares along 22 kilometres of the Santo Antonio River Valley. Previous work outlined 23 million cubic metres of gravel resource in two alluvial flats and a number of magnetic anomalies indicative of kimberlite.
At least 12 diamonds in excess of 100 carats in size (including the largest diamond ever found in Brazil, the Presidente Vargas at 726.6 carats) have been recovered in this region by garimpeiros using manual techniques.
Under the agreement, Brazilian Diamonds' Brazilian partners agreed to invest approximately Cdn$800,000 over 24 months to complete a definitive feasibility study ahead of a formal decision to move to commercial mining operations.
Expenditures including feasibility work are all borne by the Company's JV partners who will also contribute large scale mining equipment (including bucket wheel and suction mining dredges) suitable for large-scale alluvial mining operations. Brazilian Diamonds will retain a 25% free carried interest.
Exploration for the bedrock diamond source within the headwaters of the Santo Antonio do Bonito river drainage is advancing to the target identification stage. Ground magnetic and electromagnetic (Max-Min) surveys have now been completed. Detailed geologic mapping over the entire region has also been undertaken. The results of these surveys are currently being interpreted by staff geologists in Patos de Minas, and by consultants in Rio de Janeiro and Canada. Preliminary drill targets are expected to be generated within the next two months.
REGIS, MINAS GERAIS
As a continuation of our pursuit of favourable indicator mineral signatures, Brazilian Diamonds commenced drill testing of the Regis kimberlite pipe in central Minas Gerais. This very large kimberlite crater complex (>120 hectares at the surface) was originally discovered in the mid-1970s and surface exposures near the edge of the body were previously sampled, without the recovery of diamonds. Brazilian Diamonds has used a combination of surface geologic mapping, ground geophysics and indicator mineral geochemistry during 2005 and early 2006 to identify a central target zone of approximately 20 hectares within the Regis kimberlite. Drill core from the first diamond drill hole has been sent for caustic fusion testing at the Saskatchewan Research Council GeoAnalytical Laboratory (an independent lab operating to ISO standards in Canada). The Company has identified 3 additional kimberlites all within the same area as Regis and which are currently being mini bulk sampled in order to recover further kimberlite indicator minerals.
Chapada Diamantina Project
The Salvador Diamond Project is located in the central portion of the ancient São Francisco Craton, which is of Archean age and has similar basement geology to most of the world's most prolific diamond producing regions, including southern Africa, Russia and northern Canada. Brazilian Diamonds is confident that by using this exploration data base and complementing it with additional exploration work, there exists excellent potential for additional diamond discoveries to be made in the region.
Brazilian Diamonds plans to focus immediate attention on the licenses covering the Salvador 1 kimberlite pipe which De Beers advises yielded diamonds during initial test work. Preparations have commenced to prepare for a mini-bulk sample at the Salvador 1 body during the first quarter of 2007. Once the mini-bulk sample is completed and the results evaluated, the Company will be in a position to consider moving to a full scale bulk sample on this kimberlite.
Geographical Spread
States of Minas Gerais and Bahia, Brazil
Board of Directors and Key Management
| Kenneth Judge | Chairman of the Board |
| Stephen Fabian | President |
| Dr. Roger Morton | Director |
| Francis Johnstone | Director |
| David Cowan | Director |
| Kerry Beamish | CFO |
| Jacqueline Collins | Corporate Secretary |
Company AddressCorporate Office
|
Additional Address/Key ContactBrazil Office |
Annual General MeetingMay 2007 | Year EndDecember 31 |
Nominated BrokersTeather and Greenwood | Nominated AdvisorsHanson Westhouse |
Broker/Analyst Reports
05/07/07 - Edison Investment Research
Major Shareholders
| Williams de Broe | 14% |
| Anglo Pacific | 8% |
| JP Morgan | 4% |
| Henderson Global | 4% |
Related News
19/02/08 - Brazilian Diamonds Sees a Chink of Light on Canastra18/06/07 - Brazilian Diamonds Gets Ready to Start Testing One Of Its Kimberlites
Most Recent Statement
09/04/08 - Management Change27/03/08 - PLACING TO RAISE £1.3 MILLION
26/02/08 - SALVADOR I BULK TESTING - PRELIMINARY RESULTS PIT 1
22/01/08 - BULK TESTING CONTINUES AT SALVADOR 1
17/10/07 - Bulk Testing And Drilling Commences On Salvador 1 Kimberlite
16/08/07 - QUARTERLY REPORT FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2007