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
30 May 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
Directors / Officers:
Matthew Wood
Luis Azevedo
Brian McMaster
Gizman Abbas
Simon Rothschild
Nicholas Pike
TSXV: STAR
NEW KIMBERLITE DISCOVERY –
THE RIACHAO 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 Riachao Diamond Project (the
“Riachao Project” or “the Project”) in Piaui State, Brazil.
Highlights
Ø The Company has discovered a large kimberlite pipe
at the Riachao Diamond Project.
Ø The kimberlite pipe at Riachao is interpreted to be
approximately 24 Ha in size, which is large on a global
scale, and the largest kimberlite pipe the Company has
identified to date amongst its 23 diamond projects in
Brazil.
Ø Significant historical alluvial diamond production in
the region surrounding the kimberlite discovery at
Riachao.
Ø A detailed ground magnetic survey and surface
reconnaissance mapping have recently been
completed by the Company.
Ø Initial Kimberlite Indicator Minerals (“KIM”) studies
conducted by the company have been highly
encouraging. This work continues.
Ø The weathered kimberlite outcrops at surface and two
100kg mini-‐‑bulk samples are now being collected and
prepared for caustic fusion and micro diamond
analysis.
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Five Star Diamonds Riachao Diamond Project comprises 1 Exploration Licence covering
a total area of 1,278,13 hectares.
Geological interpretation of Riachao, using ground magnetic data
and geological outcrops
The Company recently completed a programme of detailed ground magnetics and
reconnaissance geological mapping across the Riachao Diamond Project.
This initial work programme has been successful in identifying a kimberlite pipe of
approximately 24 Ha in size, which is large on a global scale, and the largest kimberlite
pipe the Company has identified to date amongst its 23 diamond projects in Brazil. The
pipe is peripheral to significant historical alluvial diamond production and the Company
is now working towards determining if the pipe is diamond bearing or not.
The ground magnetic programme was composed of 44.1 linear kilometres of surveyed
lines with 10m spacing between each line and constant readings along lines. A total area
of 42.81Ha was covered by the survey.
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As part of the ground magnetic programme a programme of initial reconnaissance
geological mapping was also completed. This highlighted abundant outcrops of clay
weathered kimberlite within the survey area. A 40kg mini-‐‑bulk sample was collected
from surface outcrops on kimberlite. This was disaggregated and washed to produce a
heavy mineral concentrate for Kimberlite Indicator Minerals (KIM) analysis.
Results from KIM analysis of the concentrate generated from the 40kg sample have been
highly encouraging with abundant indicator minerals including garnet and ilmenite.
Garnets are so abundant within the concentrate, that approx. 40% of the concentrate
retrieved is composed of garnets
Coarse grained red garnets obtained on heavy minerals concentrate from outcropping
clay weathered kimberlite
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ONGOING PROGRAMME
The Company is currently collecting two 100kg mini-‐‑bulk samples from two separate
weathered kimberlite outcrop locations approximately 100m apart within the Riachao
Kimberlite. These initial two samples will be sent for caustic fusion and micro diamond
analysis. This is a preliminary test on a very large kimberlite pipe and comprehensive
drilling and further bulk sampling programmes will need to be undertaken to fully
understand the quality of the Riachao Kimberlite pipe.
The discovery of a large kimberlite pipe at the Riachao Diamond project is an exciting
early development for the Company. It once again shows the depth and significance of
the companies enviable and unique pipeline of kimberlite projects across Brazil.
Five Star Diamond’s Project Locations
Five Star Diamonds
The Company recently listed on the TSX Venture Exchange under the ticker symbol STAR.
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.
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The material project of the Company is the 100%-‐‑owned advanced stage Catalao
diamond project in the famous Coromandel diamond district of Goias State, Brazil. The
Company has also recently announced updates on its Verissimo and Jaibaras Diamond
Projects.
The Company now controls a dominant position in the Brazilian diamond sector. Along
with the Catalao Project and this recent kimberlite discovery at Riachao the Company has
21 other projects comprising an aggregate of 72 exploration licences and applications
covering a total area of approximately 120,000 hectares. All of the Company’s projects
are 100% owned. A total of 15 diamond bearing kimberlite pipes have already been
identified and sampled and a further 87 kimberlite pipes are to be tested across the
Company’s projects.
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 Riachao Project follow clear mining industry standards.
Mr. Brito, a member of AIG (Australian Institute of Geoscientists) and 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
For further information, please contact:
Five Star Diamonds Limited
Joe Burke, GM Marketing
Rajan “Raj” Rai
+1 778 835 9200
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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.