Vaaldiam Files Brauna Technical Report on Sedar
TORONTO, ONTARIO -- (Marketwire) -- 04/14/11 -- Vaaldiam Mining Inc. ('Vaaldiam' or 'the Company') (TSX: VAA) is pleased to report that it has filed the National Instrument 43-101 ('NI 43-101') Preliminary Assessment ('PA') for the Brauna 3 Diamond Project ('B3'), located at its 5,000 hectare Brauna kimberlite diamond property ('the property') in the State of Bahia, Brazil. The PA, reported by Vaaldiam on April 7, 2011, is available at:
http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00002437
Coffey Consultoria e Servicos Ltda. ('Coffey'), a subsidiary of Coffey Mining and Coffey International Limited of Australia wrote the PA. The PA contains two strongly positive economic models for B3 using a Mineral Resource estimate by A.C.A. Howe International Limited ('Howe'), reported by Vaaldiam on January 20, 2011, and a modified NI 43-101 Mineral Resource prepared by Coffey as part of the PA.
Vaaldiam CEO Robert Jackson said 'B3's initial pre-tax Net Present Value ('NPV'), at a 10% discount rate, using Howe's grade of 24.58 carats per 100 tonnes ('cpht') is US$101.0 million and the Internal Rate of Return ('IRR') is 107%. Coffey's NPV, at a modified grade of 16.4 cpht, is still US$33.6 million with an IRR of 42%. These results are extremely good and require low plant Capex of US$21.6 million. We will gather more data in 2011 to narrow the range in the NPV and IRR values to a single point. What matters is that both models are robustly positive, require minimal outlay and only consider the very initial development of the project, giving no value to potential development underground at B3 beneath 200 metres and to the 21 other kimberlites on the property, some of which are known to contain diamonds. In the past year we delivered exactly what we said at B3: we sold non-core assets to raise cash to do a bulk sample, commissioned independent valuations of our stones, established an initial Mineral Resource, entered into an agreement to increase our interest to 51% of the property and completed the PA. We note that the price of rough diamonds has risen significantly since November 2010 when we obtained our independent valuations of US$338/carat, which is very high compared to the global average for rough diamond prices of about US$70/carat. We will issue an update of our 2011 plan for B3 during April'.
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