First Diamonds Recovered from Riachao Kimberlite Discovery
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TSX-V STAR
Market Release
13 September 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
Brian McMaster
Gizman Abbas
Nicholas Pike
TSXV: STAR
FIRST DIAMONDS RECOVERED
FROM RIACHAO 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 Riachao Diamond Project (the
“Riachao Project” or “the Project”) in Piaui State, Brazil.
Highlights
Ø The Riachao diamond discovery is a new and exciting
large scale diamond-bearing kimberlite discovery in
Brazil.
Ø The discovery of the kimberlite pipe at the Riachao
Project has previously been interpreted to be
approximately 25Ha in size. This is the largest
kimberlite pipe the Company has identified to date
amongst its 24 diamond projects in Brazil.
Ø Caustic fusion and microdiamond analysis from two
mini-bulk samples yielded a total of 13 natural
diamonds.
Ø The 13 natural diamonds are transparent, with 10 of
the stones being white/colourless.
Ø Significant historical commercial alluvial diamond
production in the region surrounds the kimberlite
discovery at Riachao.
Ø A detailed ground magnetic survey has been
previously completed by the Company and the
weathered kimberlite at the Project outcrops at
surface.
Ø Geological mapping and kimberlite Indicator Minerals
(“KIM”) studies conducted by the company have been
highly encouraging.
Ø Additional work programmes are to commence
immediately at the Riachao Project. This will include
auger drilling, surface mapping and further bulk
sampling
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RIACHAO DIAMOND PROJECT, PAIUI STATE
Five Star Diamonds Riachao Diamond Project comprises one Exploration Licence
covering a total area of 1,278,13 hectares located on the southern portion of Piaui State,
within a geological province known as the “Gilbues Diamondiferous Province”.
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 were 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. The mini-bulk samples were labeled
as CF-R1-1 and CF-R1-2, with each one weighting approximately 100 kilograms.
Sample of Riacho Kimberlite Pipe
Subsequently, the two mini-bulk samples collected from clay weathered kimberlitic
material were submitted to The MSA Group (Pty) Ltd (“MSA”) in South Africa for caustic
fusion and microdiamonds analysis. The mini-bulk samples were processed at Min-Met
Equipment (Pty) Ltd (“Min-Met”) using caustic fusion digestion. Min-Met is an approved
service provider to MSA. The residues from the caustic fusion digestion were processed
by MSA (SANAS ISO/IEC17025 accredited) for microscopic sorting to the recovery of
microdiamonds down to a minimum size of +75 microns. The two residues for samples
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CF-R1-1 and CF-R1-2 were sorted twice to ensure the total recovery of all diamonds down
to a bottom cut off of +75 microns.
As quality control and assurance procedures, 220 synthetic diamonds in total (-425 µm
to + 75 µm) were added by MSA as spikes to the samples at the beginning of the caustic
fusion process. All 220 spikes added were recovered resulting in a 100% recovery rate.
In total, the two mini-bulk samples yielded 13 natural microdiamonds from the combined
weight of 195.25 kg kimberlite treated, indicating that both samples (CF-R1-1 and CF-R1-
2) are diamondiferous.
Diamond recovery details on the 2 mini-bulk samples from Riachao Project (bottom cut off +
75 microns)
Two octahedral diamonds recovered from sample CF-R1-2
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Diamonds recovered from sample CF-R1-1
The microdiamond population from the two composite samples consists of 38% broken
dodecahedra (five stones), 23% octahedral crystals (three stones), 15% octahedral
contact twins (two stones) and 15% fragments (two stones), with one dodecahedral
crystal.
The 13 natural microdiamonds are all transparent, and 10 of the stones are
white/colourless. The remaining three stones are brown in colour.
Crystal shapes and number of microdiamonds recovered from the 2 mini-bulk samples
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Next Steps
These are exceptional early results at the Riacho Diamond Project and additional
assessment will need to be undertaken on this very large kimberlite pipe. Initial work
undertaken by the Company indicates that the Riachao kimberlite is a diamond-bearing
pipe, which occurs close to surface and the Company will be able to undertake its initial
follow up programmes at a modest cost and quick manner. Work programmes will
continue immediately on the Riachao Project and will include auger drilling, surface
detailed mapping and additional bulk sampling and diamond analysis. In addition, the
company is near to complete a detailed remote sensing analysis over the whole mineral
property and it is anticipated that some circular to sub-circular features have already
been selected to be tested with a detailed ground magnetic survey.
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 24 diamond kimberlite projects comprising an
aggregate of 80 exploration licences and applications across 185,980 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.
The Company is also running active programmes across its 100% owned Jaibaras,
Catalao, Verissimo and Caiapo Diamond Projects. It is expected that the company will be
able to provide further updates 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.
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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
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