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
17 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
VERISSIMO 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 Verissimo Diamond Project (the “ Verissimo Project”
or “the Project”) in Goias State, Brazil.
Highlights
Ø The Verissimo Project was discovered in 2005.
Ø Five Star Diamonds has identified ten targets with two
(V1 and V2) confirmed as kimberlitic pipes.
Ø The V1 and V2 kimberlite pipes have been bulk
sampled by Five Star Diamonds with samples being
processed through the Catalao project’s pilot plant
Ø Bulk sampling has proven that the V1 kimberlite pipe is
diamond bearing. Diamonds recovered at the V 1
kimberlite pipe are white and are of high quality.
Ø A single diamond core drill hole was completed into
each of the V1 and V2 kimberlite pipes. Samples are
being collected and prepared for caustic fusion analysis
and microdiamond count.
Ø Auger drilling and kimberlite indicator sampling
programmes will commence in the coming months on
kimberlite targets V3-‐‑V10.
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The Verissimo Diamond Project is located in the southeast portion of Goias State in Brazil
and about 80 kilometres to the northeast of Five Star Diamonds Catalao Diamond Project.
The Verissimo Project comprises seven mineral properties covering a total of 12,402.99
hectares.
Originally discovered in 2005 and acquired by Five Star Diamonds in 2015 the Company
has to date identified ten kimberlite targets at the Verissimo Project with two, known as
V1 and V2, confirmed to be kimberlite pipes.
The Company’s concessions are in geological proximity to the famous diamond producing
area of the Verissimo River from which diamonds have been recovered for more than 100
years. In 1906, a rough diamond of 600ct called the ‘Verissimo Diamond’ was discovered
nearby the Verissimo River.
Exploration work executed at the Verissimo Project to date includes;
- Surface surveying using drone technology to create an imagery base of a
18.13 square kilometres area.
- Ground magnetic survey using 25m line spacing has defined the locations of
V1 to V10 potential targets. A total of 356 linear kilometres have been
surveyed during this phase.
- A short diamond drilling programme (2 holes, total of 251.10) confirmed V1
and V2 to be kimberlite pipes.
- Mini-‐‑bulk sampling of V1 and V2 resulted in the recovery of a small amount
of macro diamonds from V1 kimberlite.
Diamonds recovered from the mini bulk sampling of V1 kimberlite pipe
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- Dark red garnets (possible pyrope garnets) and Cr-‐‑diopsides were recovered
and classified as the main kimberlite indicator minerals (“KIM”) from the
concentrate during the mini-‐‑bulk sampling on the V2 kimberlite.
Dark red garnets and green Cr-‐‑diopsides recovered from mini-‐‑bulk sampling of V2
kimberlite
ONGOING PROGRAMMES
The Company is planning to conduct the following exploration activities over the coming
months;
- Caustic fusion and microdiamond analysis (“MiDA”) to commence on drill
samples from V1 and V2 kimberlites.
- Evaluate targets (V3 to V10) with auger drilling, trenching and loan sampling.
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Ten targets (V1 – V10) already identified with initial mini-‐‑bulk sampling completed at
pipes V1 & V2
ABOUT FIVE STAR DIAMONDS
Five Star Diamond’s 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 targeting 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.
The flagship project of Five Star Diamonds is the 100% owned advanced stage Catalao
diamond project located in the famous Coromandel diamond district of Brazil. In addition,
the Company owns 22 other diamond kimberlite projects, including the Verissimo
Diamond Project, comprising an aggregate of 72 exploration licences and applications
covering a total area of 123,667 hectares. The Company now controls a dominant and
highly enviable position in the Brazilian kimberlite diamond sector.
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Five Star Diamonds has now successfully listed on the TSX-‐‑V, under the ticker symbol
STAR, and looks forward to an aggressive work programme at its diamond projects
across Brazil. This release is part of many announcements expected over the coming
months and we look forward to keeping shareholders updated on 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 Verissimo 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
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
For further information, please contact:
Five Star Diamonds Limited
Joe Burke, GM Marketing
Rajan “Raj” Rai
+1 778 835 9200
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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.