FIVE STAR 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
11 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
JAIBARAS DIAMOND PROJECT
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 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 nearing completion.
Ø Bulk sampling and processing of material from the J4
kimberlite pipe is planned to commence prior to the
end of July. An initial sample of 20t is to be sampled
from the clay weathered kimberlite at J4.
Ø On completion of bulk sampling at J4, the Company will
process similar sized samples from the J1 and J2
kimberlite pipes. J3 & 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 20 diamond core drill holes have now been
successfully completed on the J1 kimberlite pipe.
Ø Both drilling rigs are currently operating on the J2
kimberlite pipe and two holes have been completed.
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JAIBARAS DIAMOND PROJECT, PARA STATE
The Company is conducting an active bulk sampling and drilling programme at the
Jaibaras Diamond Project. At this stage, the Company has two drilling rigs on site and is
completing construction of the bulk sampling plant. A total of eight kimberlite pipes (J1-
J8) have been identified and are 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 nearing completion and will
commence processing a 20t sample from the J4 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.
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Bulk Sampling plant construction nearing completion at Jaibaras
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.
Diamond core drilling focusing on the J1 and J2 kimberlite pipes is well underway with
20 drill holes now completed at the J1 kimberlite pipe and two drill holes completed at
the J2 kimberlite pipe. Initial results are meeting the Company’s expectations with a total
of 720 meters completed to date.
Diamond Core drilling underway at the J1 diamondiferous kimberlite pipe
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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. A
small drilling programme will also be conducted on the J4 kimberlite in conjunction with
the bulk sampling programme.
Auger drilling Programmes have now been completed on targets J3 to J6.
J1 Kimberlite Diamond Core Drilling Programme
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J2 Kimberlite Diamond Core Drilling Programme
Garnets and Cr-diopside, key Kimberlite Indicator Minerals indicators (KIM’s) recovered from drill hole JAI-
DDH-004-17
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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.
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
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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