First Diamonds Recovered from Maravilha Kimberlite Discovery
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TSX-V STAR
Market Release
20 December 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
Aneel Waraich
Gizman Abbas
Nicholas Pike
TSXV: STAR
FIRST DIAMONDS RECOVERED
FROM MARAVILHA KIMBERLITE
DISCOVERY
Toronto, ON - Five Star Diamonds Limited (TSXV: STAR) (the
“Company” or “Five Star Diamonds”) is extremely pleased to provide
the following update on its 100% owned Maravilha Diamond Project
(the “Maravilha Project” or “the Project”) in Minas Gerais State, Brazil.
Highlights
Ø The Maravilha diamond discovery is a new and exciting
near surface diamond-bearing kimberlite discovery in
Brazil.
Ø Mineral study from the bulk sample CF-MAR-1 on the
M3 kimberlite pipe has identified a total of seven
diamonds during initial examination of concentrates.
Ø Three white and transparent macro -
diamonds (>0.5mm) and four microdiamonds have
been identified under microscope.
Ø Bulk sampling will continue across the M3 kimberlite
pipe with other targets identified and currently been
treated. These will be prepared for caustic fusion and
diamond analysis.
Ø A detailed ground magnetic survey has also been
completed on the recently acquired, extended portion,
of the Maravilha Project.
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MARAVILHA DIAMOND PROJECT, MINAS GERAIS STATE
Five Star Diamonds Maravilha Diamond Project comprises two Exploration Licences
covering a total area of 1,114.86 hectares located in Minas Gerais State.
The Company recently reported that a detailed geology mapping and ground magnetic
survey was completed along with the commencement of initial mini-bulk sampling of the
M3 Kimberlite pipe. The M3 kimberlite lies within the Sao Francisco Craton and is hosted
by Archean meta-granites and meta-volcanic basalts. Ground magnetic survey indicated
that the M3 pipe has a strong magnetic response suggesting an ovoid shape measuring
130 by 65 meters with the major axis aligned along a northeast-southwest direction.
During a recent in-house microscope study of the heavy minerals from this initial mini-
bulk sample CF-MAR-1 a total of 7 (seven) diamonds were identified. Three of the
diamonds recovered are described as white and transparent macrodiamonds [>0.5 mm
in size] with the remaining four diamonds classed as microdiamonds. One of the
microdiamonds is a perfect white and transparent octahedron crystal.
These stones have been returned to the concentrate for future treatment and recovery by
caustic fusion and microdiamond analysis.
Three white and transparent macrodiamonds identified in mini-bulk sample CF-MAR-1
Mini-bulk sampling will continue across the M3 kimberlite pipe and other targets from
the geology and magnetic survey identified.
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Four microdiamonds identified on mini-bulk sample CF-MAR-1
White and transparent octahedron microdiamond from mini-bulk sample CF-MAR-1
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All samples will be individually pre-treated (washing, sieving and drying) to generate
concentrates for diamond analysis (caustic fusion/MiDA) with results expected early in
2018.
The Company also recently acquired an adjacent property immediately east of Maravilha
with the Company reporting that the property contains Kimberlite Indicator Minerals
(KIM’s) similar to the diamond-bearing M3 pipe but has never been tested for diamonds.
Next Steps
These are exceptional early results at the Maravilha Diamond Project and additional
assessment will be undertaken, including trenching and drilling to delineate the M3 pipe.
ABOUT FIVE STAR DIAMONDS
Five Star Diamonds is listed on the TSX Venture Exchange under the ticker symbol STAR
and has recently signed a cooperation agreement with leading global diamond house
Hennig Limited. The Company controls a dominant and highly enviable position in the
Brazilian kimberlite diamond sector owning 23 diamond kimberlite projects comprising
an aggregate of 67 exploration licences and applications across 165,019 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 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.
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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.
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