Vaaldiam to Expedite Brauna & Focus on Kimberlites
TORONTO, ONTARIO -- (Marketwire) -- 04/26/11 -- Vaaldiam Mining Inc. ('Vaaldiam' or 'the Company') (TSX: VAA) is pleased to report its 2011 development plan for the Brauna 3 Diamond Project ('B3'), located at its 5,000 hectare Brauna kimberlite diamond property ('Brauna' or 'the Property') in the State of Bahia, Brazil.
Vaaldiam will spend US$3.9 million, including 12% contingency, on the Property in 2011. The strategy is to focus on the kimberlite potential at Brauna, to increase the initial B3 diamond resource and to expedite B3 to production as quickly as possible. Vaaldiam has a portfolio of investments that it can sell to finance the program.
Vaaldiam CEO Robert Jackson said 'We expect a substantial return from this budget. We need information for our feasibility study and we want to substantially increase our initial resource. We had excellent results at B3 from our surface bulk sample in 2010, finding good grades and high quality diamonds. Now we will sink a shaft in the centre of B3 to least 80 metres to test the vertical grade distribution and density, gathering enough fresh kimberlite to perform a second bulk sample for our feasibility study. We also plan approximately 4,150 metres of delineation drilling at B3 and 1,350 metres of drilling with thirteen holes delineating the Brauna 8 - Brauna 21 kimberlite dike system to enhance our understanding of its potential as economic extensions of B3. Our initial resource at B3 only considers the top 200 metres of the deposit and we know it goes deeper. We are also initiating our permitting process'.
Separately, Vaaldiam has decided to cease operations at its Duas Barras ('DB') alluvial mine so that it can focus its resources on the greater potential at Brauna. Diamond and gold grades at DB have been extremely variable in the last six months and have not met expectations. Rising diamond prices may eventually improve the mine's economics and make it reliably profitable, but until then Vaaldiam believes its resources are best invested at Brauna. Diamond prices continue to rise because of a long-term structural imbalance between rising demand and a lack of new mines.
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