Maravilha M3 Kimberlite Discovery Update
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TSX-V STAR
Market Release
13 February 2018
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
Max Jahn
Gizman Abbas
Nicholas Pike
TSXV: STAR
MARAVILHA M3 KIMBERLITE
DISCOVERY UPDATE
Toronto, ON - Five Star Diamonds Limited (TSXV: STAR) (the
“Company” or “Five Star Diamonds”) is extremely pleased to
provide the following update on preliminary results from its
100% owned Maravilha Diamond Project (the “ Maravilha
Project”) in Minas Gerais State, Brazil.
Highights
Ø Preliminary results from the caustic fusion and
diamond analysis on the 1t bulk sample (CF-MAR-
1) from the M3 kimberlite has recovered over 400
diamonds in sorting to date.
Ø A number of macro diamonds have been
recovered in the process and are currently being
weighed and described along with the large
volume of microdiamonds.
Ø Additional b ulk sampling and drilling
programmes are currently being planned to fast
track this project and the M3 kimberlite discovery.
Ø A further six possible kimberlite targets have been
identified across the Maravilha Project.
Ø The Company hopes to have final results from CF-
MAR-1 in the coming weeks at which time a more
detailed report will be available.
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MARAVILHA DIAMOND PROJECT
The Company recently announced the beginning of a bulk sampling program to test the
M3 kimberlite discovery. The M3 kimberlite lies within the Sao Francisco Craton and is
hosted by Archean meta granites and meta volcanic basalts. A ground magnetic survey
indicated that the M3 pipe has a strong magnetic response suggesting an ovoid shape
measuring approximately 130 by 65 meters with the major axis aligned along a
northeast-southwest direction.
The bulk sampling over the M3 kimberlite was recently concluded and the sample (CF-
MAR-1) was subsequently submitted for caustic fusion and diamond analysis at SGS-
Geosol Laboratory, based in Belo Horizonte, Brazil.
The bulk sample CF-MAR-1 weighing approximately 1.04t was caustic fused and refused
several times to produce a final residue weight of 12.87 grams. Diamond sorting is
currently underway with more than 400 macro and microdiamonds recovered to date.
Sorting continues and the Company expects to receive final results from the caustic
fusion and diamond analysis of CF-MAR-1 in the coming weeks.
To date, the largest macro diamond recovered measures approximately 3.58 mm by
2.87 mm. Additional macro diamonds have been recovered with the final number of the
stones unknown at this time.
Largest macro diamond recovered to date from sample CF-MAR-1.
The Company is completing a detailed ground magnetic survey on the Maravilha Project
and to date approximately 20% of the project area has been surveyed totalling 118
linear kilometres. Interpretation undertaken by Five Star Diamonds technical staff has
now delineated seven (7) magnetic targets which have been labelled M3 to M9.
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Given these highly successful early results the Company is now fast tracking the M3
kimberlite and the Maravilha Project.
Selection of macro diamonds from mini-bulk sample CF-MAR-1
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Next Steps
The Company is encouraged by these exceptional early results at the Maravilha
Diamond Project and additional assessment will be undertaken, including potential
trenching and drilling to delineate the M4 to M9 targets.
ABOUT FIVE STAR DIAMONDS
Five Star Diamonds 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 projects comprising an aggregate of 67
exploration licences and applications across 165,019 hectares.
To date, the Company has conducted exploration programs on seven projects with the
Catalao, Verissimo, Riachao, Jaibaras and Maravilha Projects proven to contain diamond
bearing kimberlites.
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 Maravilha Diamond
Project. It is expected that the company will be able to provide further updates on this
and its other Projects 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 professional
geologist of CREA-RJ (Conselho Regional de Engenharia e Arquitetura) and a Qualified
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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