New Discovery Establishes Diamonds Across a Wide Area at Riachao Project
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TSX-V STAR
Market Release
30 November 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
NEW DISCOVERY ESTABLISHES
DIAMONDS ACROSS A WIDE AREA
AT RIACHAO 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 Mineral study on bulk sample CF-R1-7 has identified a
white/transparent dodecahedron microdiamond that
is approximately 0.2mm in size.
Ø This diamond discovery is importantly located on the
opposite side of the Riachao kimberlite approximately
670m from where previous diamonds have been
recovered.
Ø Recently completed auger drilling, mapping and
detailed ground magnetics completed at the Riachao
Project has confirmed the presence of a 25ha
kimberlite pipe at surface . This is the largest
kimberlite pipe the Company has identified to date
amongst its 23 diamond projects in Brazil.
Ø Stage-2 sampling at the Riachao Project has been
completed with seven 1t samples collected for caustic
fusion and diamond analysis. Results are expected
early in 2018.
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RIACHAO DIAMOND PROJECT, PIAUI STATE
The Riachao Diamond Project is located in Piaui State and comprises one exploration
licence covering a total area of 1,278.13 hectares. It is located within a geological
province known as the “Gilbues Diamondiferous Province”.
Additional Caustic Fusion and Diamond Analysis
The Company recently reported the completion of a second and more extensive caustic
fusion and diamond analysis programme. The total programme comprised seven
samples which combined have an original total wet weight of 7,117 kgs. These samples
were individually pre-treated (washing, sieving and drying) to generate concentrates for
diamond analysis (caustic fusion/MiDA). A total of 308.38 dry kilograms of concentrates
were produced it total.
The first four samples labelled CF-R1-3, CF-R1-4, CF-R1-5 and CF-R1-6 have arrived in
South Africa for caustic fusion and diamond analysis at The MSA Group.
The remaining three samples labelled CF-R1-7, CF-R1-8 and CF-R1-9 have been prepared
and are ready for delivery to South Africa.
During a brief mineral examination of concentrates a diamond was identified in sample
CF-R1-7. The diamond is a white/transparent, dodecahedron microdiamond and has a
size of approximately 0.2mm. This stone has been returned to the concentrate for
treatment and recovery by caustic fusion and microdiamond analysis.
This is further verification that the Riachao kimberlite is diamond bearing across large
areas with white transparent diamonds now recovered at both extremes of the kimberlite
(670 metres apart). Further work at Riachao will be a focus for the Company over the
coming months as it advances a sampling program of the 25ha kimberlite pipe that is out
cropping at surface.
White/transparent, dodecahedron microdiamond recovered from mini-bulk sample CF-R1-7
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Location of mini-bulk samples recently collected (CF-R1-3 to CF-R1-9).
In May 2017, the Company completed a detailed ground magnetic survey over a small
pre-selected target area inside the Riachao mineral property and, as a result of this
survey, a potential kimberlite target was delineated with an interpreted size of
approximately 25 hectares. A preliminary surface inspection revealed the presence of a
series of weathered kimberlite outcrops. Two outcrops (28 metres apart) were selected
on the eastern side of the target and one mini-bulk sample was collected on each of these
two sites. The surficial exposure of the selected outcrops was cleaned and volumetric
samples of clay weathered kimberlitic rocks were manually collected with the help of a
hoe and a hammer, roughly on sub-vertical channels. In total, the two mini-bulk samples
yielded 13 natural microdiamonds, from an original weight of 195.25 kilograms.
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
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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 Riachao 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 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