Bulk Sampling Commences at the Jaibaras Diamond Project
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TSX-V STAR
Market Release
25 July 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
Brian McMaster
Gizman Abbas
Simon Rothschild
Nicholas Pike
TSXV: STAR
BULK SAMPLING COMMENCES AT
THE JAIBARAS DIAMOND PROJECT
Toronto, ON - Five Star Diamonds Limited (TSXV: STAR) (the
“Company” or “Five Star Diamonds”) is very pleased to provide the
following update on its 100% owned Jaibaras Diamond Project (the
“Jaibaras Project” or “the Project”) in Para State, Brazil.
Highlights
Ø Construction of the 0.5tph bulk sampling plant at
Jaibaras is completed.
Ø A 20t bulk sampling has commenced on the J3
kimberlite target.
Ø On completion of bulk sampling at J3 kimberlite, the
Company will process similar sized samples from J1,
J2 and J4 kimberlite pipes. J5-J8 kimberlite pipes
remain under assessment.
Ø The Company has two diamond core drilling rigs
operating on the Jaibaras Diamond Project. Initial
drilling results from the J1 and J2 kimberlite pipes
are meeting the Company’s expectations.
Ø A total of 34 diamond core drill holes have now been
successfully completed on the J1 and J2 kimberlite
pipe.
Ø Both drilling rigs are currently operating on the J2
kimberlite pipe and 14 holes have been completed.
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JAIBARAS DIAMOND PROJECT, PARA STATE
The Company has commenced its bulk sampling and continues its drilling programme at
the Jaibaras Diamond Project. The Company maintains two drilling rigs on site and has
commenced a 20t bulk sampling on the J3 kimberlite target. Similar samples will be
processed from the J1, J2 and J4 kimberlite pipes. A total of eight kimberlite pipes (J1-J8)
have been identified and continue to remain under assessment and evaluation at Jaibaras.
Previous mini bulk sampling of the J1 and J2 kimberlite pipes has already resulted in the
recovery of gem quality macro diamonds from clay weathered kimberlite.
Construction of the 0.5tph bulk sampling plant is now completed and will commence
processing a 20t sample from the J3 kimberlite pipe. The bulk sampling plant is a 0.5tph
mobile wash and jig concentrate sampling plant which recovers diamonds above 1.5 mm
in size. As observed from recently completed programmes the kimberlite pipes at
Jaibaras occur on or very close to surface which allows the Company to quickly test the
diamondiferous quality of the pipes. Initial results from the bulk sampling programme
should be available in the coming month.
Bulk Sampling plant at Jaibaras
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Bulk sampling of the J3 kimberlite pipe
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Diamond core drilling focusing on the J1 and J2 kimberlite pipes is well underway with
20 drill holes completed at the J1 kimberlite pipe and 14 drill holes completed at the J2
kimberlite pipe. Initial results are meeting the Company’s expectations with a total of
1,064 meters completed to date.
The key objective of the drill programme is to cross cut the clay weathered zone and
penetrate approximately five metres into the fresh rock. This has been successful to date
and will allow the Company to delineate the lateral boundaries of the pipe and the vertical
depth extent of the clay weathered zone. Once completed this will then provide the
necessary data to conduct a tonnage estimation of the J1 & J2 clay weathered zones.
The 5tph Pilot Plant wash and rotary pan concentrate plant, used to complete the pilot
programme at the Company’s Catalao Diamond project, has been dismantled and is
awaiting granting of the trial mining licence prior to mobilisation to the Jaibaras Project.
J1 Kimberlite Diamond Core Drilling Programme
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J2 Kimberlite Diamond Core Drilling Programme
ABOUT FIVE STAR DIAMONDS
The Company is listed on the TSX Venture Exchange under the ticker symbol STAR.
The Company controls a dominant and highly enviable position in the Brazilian
kimberlite diamond sector owning 23 diamond kimberlite projects comprising an
aggregate of 72 exploration licences and applications across 123,667 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 Diamond Project.
The Company is also running active programmes across its 100% owned Catalao, Riacho,
Verissimo and Caiapo 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.
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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
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.
For further information, please contact:
Five Star Diamonds Limited
Joe Burke, GM Marketing
Rajan “Raj” Rai
+1 778 835 9200
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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.