DIAMONDS LIMITED Av. Jornalista Ricardo Marinho, 360 Ed. Cosmopolitan - Sala 113, CEP 22631-350 Barra da Tijuca - Rio de Janeiro Brazil
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TSX-V STAR
Market Release
23 November 2017
FIVE STAR
DIAMONDS LIMITED
Av. Jornalista Ricardo
Marinho, 360
Ed. Cosmopolitan - Sala 113,
CEP 22631-350
Barra da Tijuca - Rio de
Janeiro Brazil
Tel: +55 8 9200 6264
Contact:
Joe Burke, GM Marketing
Rajan “Raj” Rai
+1 778 835 9200
Directors / Officers:
Matthew Wood
Luis Azevedo
Aneel Waraich
Gizman Abbas
Nicholas Pike
TSXV: STAR
FIVE STAR DIAMONDS BRAZIL
PROJECTS UPDATE
Toronto, ON - Five Star Diamonds Limited (TSXV: STAR) (the
“Company” or “Five Star Diamonds”) is very pleased to provide
the following update on its activities at its 100% owned Brazilian
Diamond Projects.
Highlights
Ø Bulk sampling and jig processing at the Jaibaras
Project has confirmed that four kimberlite pipes
tested to date are diamondiferous with a total of six
macro diamonds recovered.
Ø Samples collected from the Jaibaras drilling
program across the J1, J2 and J4 kimberlite pipes
will be submitted for additional caustic fusion and
microdiamond analysis in 2018.
Ø Recent auger drilling completed at the Riachao
Project has confirmed the presence of a 25ha
kimberlite pipe at surface.
Ø Stage-2 bulk sampling at the Riachao Project has
been completed with seven samples being collected
for caustic fusion and diamond analysis. Results are
expected early in 2018.
Ø A detailed ground magnetic survey has commenced
at the extended Maravilha Project in Minas Gerais
State. A program of bulk sampling wi ll also
commence across the M3 kimberlite pipe and other
targets identified from the magnetic program.
Ø Initial field work is currently planned at the
Company’s 100% owned Bacuri Project, in Mato
Grosso State, where previous work has identified a
diamond bearing kimberlite pipe.
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JAIBARAS DIAMOND PROJECT, PARA STATE
The Jaibaras Diamond Project is located in Para State in Brazil and comprises six
individual mineral properties, which in total cover 49,443.47 hectares. To date eight
kimberlite targets have been identified at the Jaibaras Project. Bulk sampling and jig
processing of the J1, J2, J3 and J4 kimberlite pipes has been completed and has resulted
in the recovery of six diamonds from clay weathered kimberlite. The diamonds have good
shapes, clarity and colour with two of the six diamonds being yellow.
The samples comprise approximately 15t (120t total) of weathered kimberlite collected
in a shallow pit that were then washed and concentrated by a jig plant (with a 1mm
bottom cut-off). Jig concentrates were then processed by FlowSort X-ray technology, and
the ejected material collected and submitted to MSA for diamond collection.
Significant problems were experienced in the operating of the jig plant due to the clay
content of the kimberlite. The jig plant also produced concentrates with a high white mica
content which greatly affected the ability of the FlowSort to recover diamonds. This
method of sampling although successful in recovering some macro diamonds has been
deemed unreliable by the Company and the Company will no longer use this technique
for sampling.
FlowSort concentrates were then processed through caustic fusion in South Africa. The
residues from the caustic fusion digestion were processed by MSA (SANAS ISO/IEC17025
accredited) for microscopic sorting for the recovery of diamonds down to a minimum size
of +850 microns. This was necessitated due to the poor nature of the concentrates
reporting from the jig plant and the poor operating performance of the FlowSort on jig
concentrates.
In total six diamonds were recovered and photos and descriptions are below.
Next Steps
The Company has already collected additional mini-bulk samples for caustic fusion and
diamond analysis using the core of the recently completed diamond drilling programme
conducted over J1, J2 and J4 pipes.
Additional bulk sampling, caustic fusion and microdiamond analysis along the lines of
what the Company has recently completed at the Riachao Project will be completed in
2018.
The eight kimberlite targets currently identified are located within a small area of 522
hectares, which represent only 1.1% of the total project area. A target selection phase
using airborne magnetic data is in progress and the priority targets selected from this
phase will be analysed alongside ground magnetic survey, soil-stream geochemistry and
auger drilling.
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A) Sample J1-1: Greenish-yellow transparent broken
complex crystal, size fraction -2.36 mm +1.70 mm,
0.1385 carats
B) Sample J2-1: Yellow translucent broken
dodecahedron with inclusion, size fraction -3.35 mm
+2.36 mm, 0.1771 carats
C) Sample J3-1: White transparent octahedron, size
fraction -2.36 mm +1.70 mm, 0.0707 carats
D) Sample J3-2: White transparent composite crystal,
size fraction -2.36 mm +1.70 mm, 0.1037 carats
E) Sample J4-1: White translucent broken
octahedron, size fraction -1.18 mm +0.85 mm, 0.00576
carats
F) Sample J4-1: White transparent octahedral
contact twin, size fraction -1.18 mm +0.85 mm, 0.02115
carats
Diamonds recovered from the Jaibaras Project
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RIACHAO DIAMOND PROJECT, PIAUI STATE
The Riachao Diamond Project is located in Piaui State and comprises one exploration
licence covering a total area of 1,278.13 hectares. It is located within a geological
province known as the “Gilbues Diamondiferous Province”.
In May 2017, the Company completed a detailed ground magnetic survey over a small
pre-selected target area inside the Riachao mineral property and, as a result of this
survey, a potential kimberlite target was delineated with an interpreted size of
approximately 25 hectares. A preliminary surface inspection revealed the presence of a
series of weathered kimberlite outcrops. Two outcrops (28 metres apart) were selected
on the eastern side of the target and one mini-bulk sample was collected on each of these
two sites. The surficial exposure of the selected outcrops was cleaned and volumetric
samples of clay weathered kimberlitic rocks were manually collected with the help of a
hoe and a hammer, roughly on sub-vertical channels. In total, the two mini-bulk samples
yielded 13 natural microdiamonds, from an original weight of 195.25 kilograms.
Additional Caustic Fusion and Diamond Analysis
Promising results from the initial caustic fusion programme at the Riachao Project in the
previous quarter has encouraged the Company to complete a second and more extensive
caustic fusion and diamond analysis programme on a further seven samples. The first
four samples labelled CF-R1-3, CF-R1-4, CF-R1-5 and CF-R1-6, which have been pre-
treated (washing + sieving) to produce final concentrates, have been fast tracked to South
Africa for caustic fusion and diamond analysis at The MSA Group. The remaining three
samples (CF-R1-7, CF-R1-8 and CF-R1-9) are being prepared and will follow the same
procedures above.
Auger Drilling Programme
An initial program of 100x100m auger drilling across the Riachao kimberlite has recently
been concluded. A total of 26 auger holes have been drilled and 14 holes (approximately
54%) intersected weathered kimberlitic rocks. The auger programme comprised of a
cumulative 185.30 linear meters.
The results of the auger programme were positive and confirmed the original kimberlite
target area interpreted based on the ground magnetic response. Two auger holes (RIA-
04A and RIA-05A) stopped at shallow depths (6.0 and 3.0 metres, respectively) inside the
shallow sandstone cap.
The weathered kimberlitic rocks intersected by auger holes were described as a
resedimented volcaniclast kimberlite (“RVK”). The RVK is locally outcropping or covered
by a thin soil cover (1.0 to 4.5 metres) containing blocks and boulders of laterite and
sandstone. The RVK is a garnet+olivine-rich rock, also containing smaller amounts of
picroilmenite, Cr-spinell and Cr-diopside.
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Auger drilling results at the Riachao kimberlite
Garnets (representing the main KIM’s) are abundant within the Riachao samples
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MARAVILHA DIAMOND PROJECT, MINAS GERAIS STATE
The Maravilha project comprises two exploration licences for a total of 1,114.86 hectares.
The Company has recently acquired an adjacent property immediately east of Maravilha
and this property contains Kimberlite Indicator Minerals (KIM’s) similar to the diamond-
bearing M3 pipe but that have never been tested for diamonds.
A detailed geology mapping and ground magnetic survey will commence in the coming
weeks along with mini-bulk sampling of the M3 Kimberlite pipe and new targets
identified from the geology and magnetic survey.
ADDITIONAL FIELD WORK
The Company is planning to undertake initial field work on the 100% owned Bacuri
Project in Mato Grosso State. The Bacuri Project is located closed to Poxoreo City and
comprises one exploration licence for 863.68 hectares. The city of Poxoreo is locally
known as the Brazilian Diamond Capital based on the extensive historical workings for
diamonds.
ABOUT FIVE STAR DIAMONDS
Five Star Diamonds is listed on the TSX Venture Exchange under the ticker symbol STAR
and has recently signed a cooperation agreement with leading global diamond house
Hennig Limited. The Company controls a dominant and highly enviable position in the
Brazilian kimberlite diamond sector owning 23 diamond kimberlite projects comprising
an aggregate of 67 exploration licences and applications across 165,019 hectares.
Five Star Diamonds is focused on acquiring and developing advanced staged diamond
projects in Brazil. Since it was established, it has pursued an accelerated growth strategy
and aims to be one of the first producers of diamonds from kimberlite deposits in Brazil.
The Company is focused on the development of sustainable kimberlite pipes and is not
involved in alluvial diamond mining with its associated environmental issues. The
Company works closely with local, state and federal authorities in Brazil to foster an open,
transparent and legal diamond industry in Brazil.
This release is an update by the Company on its 100% owned Jaibaras, Riachao, Maravilha
and Bacuri Diamond Projects. It is expected that the company will be able to provide
further updates over the coming months and we look forward to keeping shareholders
informed of our progress as we move towards building a truly unique Brazilian Diamond
Company.
Qualified Person
Mr Paulo Ilídio de Brito
BSc Geology
Mr. Paulo de Brito is a geologist based in Brazil, has over 30 years of experience in the
mining industry, dealing primarily with gold, copper, nickel, iron, industrial minerals and
more recently diamonds. Mr. Brito is a Principal of consulting group Brasgeo and was
until recently Exploration Manager of Paringa Resources Limited. Previously, he worked
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as a senior geologist with WMC Resources Ltd for 18 years until the closure of their
activities in Brazil in 2002.
The exploration activities and their related results included in this announcement were
directly supervised and managed by Mr. Brito. According to Mr. Brito, all exploration
work carried out to date on the Projects mentioned in this release follow clear mining
industry standards.
Mr. Brito, is a member of AIG (Australian Institute of Geoscientists), a member of AusIMM
(The Minerals Institute) and a Qualified Person as defined in National Instrument 43-101.
Mr. Brito reviewed and approved the scientific and technical information contained in
this press release.
On behalf of the Board
Five Star Diamonds Limited
Matthew Wood
Chairman of the Board, President and CEO
Cautionary Note Regarding Forward-looking statements
Information set forth in this news release contains forward-looking statements. Although the Company believes that
such statements are reasonable, it can give no assurance that such expectations will prove to be correct. The Company
cautions investors that any forward-looking statements by the Company are not guarantees of future results or
performance, and that actual results may differ materially from those in forward looking statements as a result of
various factors, many of which are beyond the Company’s control. Such factors include, among other things: variations
in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the
market price of any minerals produced, the Company’s inability to obtain any necessary permits, consents or
authorizations required for its activities, to produce minerals from its properties successfully or profitably, to continue
its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. Accordingly,
actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and
expectations expressed or implied in the forward-looking information. Except as required under applicable securities
legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS
DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information, please contact:
Five Star Diamonds Limited
Joe Burke, GM Marketing
Rajan “Raj” Rai
+1 778 835 9200