New Kimberlite Discoveries at Catalao Diamond Project
NEW KIMBERLITE DISCOVERIES AT CATALAO DIAMOND PROJECT
TORONTO, September 25, 2018 – Five Star Diamonds Limited (TSX‐V:STAR) Five Star
Diamonds Limited (“Five Star” or the “Company”) is pleased to announce very promising
results from the ongoing diamond drilling programme at the Catalao project.
CATALAO DIAMOND PROJECT
The Catalao Diamond project is located in Goias State, Brazil and contains an indicated
mineral resource of 517,000 tonnes grading 23.5 cpht and additional inferred mineral
resources of 7.76 Mt grading 26.7 cpht, both estimated based on a US$ 200/ct average
carat value. The actual project resources were distributed in three kimberlite pipes named
CAT‐01A, CAT‐01B and CAT‐01C (together “CATs‐01ABC”). The indicated resources
represent the upper oxide zone of the three pipes and the inferred resources are related
to the fresh material (Catalão Diamond Project – NI 43‐101 Technical Report dated 9
February 2017 and prepared by S.Hutchin).
As previously announced, the Company has acquired the majority of the equipment to
commence mining at the oxide zone. A Dense Media Separator plant (“DMS plant”) and
major equipment is already on site. The construction of the DMS plant is expected to take
6‐8 months from receipt of final funding with production of the oxide material from CATs‐
01ABC to commence shortly thereafter. The decision to bring the Catalao mine in to
production, specifically CATs‐01ABC, is not based on a feasibility study establishing
mineral reserves demonstrating economic and technical viability and thus may increase
uncertainty and specific risks of failure associated with this production decision.
In early August 2018, Five Star started a diamond drilling programme to test new
exploration targets which were selected based on the results of a detailed ground
magnetic survey and a shallow auger drilling programme previously developed by the
Company since exploration activities started in 2015.
From early August to date, the Company has concluded 14 exploration drill holes for a
total of 948.65 linear‐meters. All drill holes are using an HQ (63.5mm) diameter and have
been drilled vertically or inclined at 60 degrees. The ongoing drilling programme is being
conducted by a major Brazilian drilling company and Five Star has an additional budget to
drill another 2,500 linear‐meters this year.
The actual exploration drilling programme resulted in the discovery of three new
kimberlite pipes, named CAT‐11A, CAT‐11B and CAT‐01K.
CAT‐11A and CAT‐11B pipes are located approximately 1,000 to 1,100 meters southwest
of CATs‐01ABC and approximately 1,450 to 1,500 meters southwest of the planned site
for the DMS plant [figure 01]. Both pipes are part of a group of 4 circular to sub‐circular
magnetic anomalies which are strongly controlled by a northwest‐southeast major
structure, similar to the structural control on CATs‐01ABC pipes [figure 02].
Figure 01 – Location of the kimberlite pipes at the Catalao Diamond Project.
The CAT‐11A kimberlite pipe was discovered by drill hole CAT‐DDH‐18‐033 which
intersected 23.16 meters of a weathered kimberlitic rock located close to the surface. The
interval is composed by a typical upper Yellow Ground1 (orange saprolite of kimberlite)
followed by a lower Blue Ground2 (green saprolite of kimberlite). Both zones are highly
magnetic and contain high chromium values. The weathered CAT‐11A kimberlite pipe is
covered by a high magnetic reddish brown soil horizon with a thickness of about 8 vertical
meters.
The CAT‐11B kimberlite pipe was discovered by drill hole CAT‐DDH‐18‐034 which
intersected 31.04 meters of a weathered kimberlitic rock close to surface. The drill
interval is similar to the one obtained on CAT‐11A pipe, starting with an upper orange
saprolite (Yellow Ground) and changing to a lower dark green saprolite (Blue Ground).
Also similar, the weathered kimberlitic material is highly magnetic and contains
anomalous chromium values. The soil cover over this pipe is about 10 vertical meters.
1 Yellow Ground represent the upper portion of the weathering profile commonly developed on top
of kimberlite pipes on tropical regions. This term is widely used in South Africa.
2 Blue Ground represent the lower portion of the weathering profile commonly developed on top of
kimberlite pipes on tropical regions. The Blue zone sits just on top of the fresh rock This term is
widely used in South Africa.
Figure 02 – Magnetic response (Analytic Signal Image) over CAT‐11 targets/pipes.
The third discovery represents the CAT‐01K pipe which is located 270 meters southeast
of CATs‐01ABC and 350 meters south of the planned site for the DMS plant [figure 01]. This
pipe was intersected by drill hole CAT‐DDH‐18‐023 which returned with an interval of
17.15 meters of weathered (saprolite) to semi‐weathered (saprock) kimberlitic intrusion.
The semi‐weathered portion contains mantle and crustal xenoliths ranging from 1 to 8
centimeters in size [figure 03]. Kimberlite Indicator Minerals (“KIM”) such as garnet, Cr‐
diopside, Cr‐spinnel are present together on the mantle xenoliths and as free crystals in
the rock matrix. The whole intersection contains a high magnetic response.
Figure 03 – CAT‐01K kimberlite. Hole CAT‐DDH‐18‐023 (31.50m depth).
In addition, ten (10) drill holes already concluded on other exploration targets have
uncovered new kimberlite intersections with variable sizes ranging from 1.31 meters up
to 13.50 meters. The company is reviewing these actual results and is considering making
additional infill holes on some of these targets after the conclusion of the ongoing drill
target testing phase.
“We are very excited with these new discoveries at
Catalao which supports our belief that Catalao is a highly prospective diamond project
with multiple kimberlites. This provides a positive backdrop as we look to complete our
financing, commence construction and then start production at Catalao” said Matthew
Wood, Chairman of Five Star Diamonds.
Next Steps
For the remainder of 2018, Five Star will continue to focus on further defining and
expanding resources at Catalao. The diamond drilling programme will continue testing
new potential exploration targets and delineating the size of the new discoveries.
The Company is also planning to split and use half‐core from CAT‐11A and CAT‐11B pipes
to be submitted for a caustic fusion, followed by a macro and micro diamond analysis. In
addition, it is under consideration to conduct shallow excavations on CAT‐11 pipes to
collect bulk samples to be run on a pilot plant.
MARAVILHA DIAMOND PROJECT
The Maravilha Diamond project is located in Minas Gerais State, Brazil. In March 2018,
Five Star announced the results of a bulk sampling program to test the M3 kimberlite pipe
at the Maravilha Diamond Project. A total of 658 macro and microdiamonds were
recovered.
Early in May, the Company initiated a preliminary diamond drilling programme to
evaluate the shape of the M3 kimberlite, as well as, to acquire enough core material for
further caustic fusion and a micro‐macro diamond analysis.
Figure 04 – Diamond drilling at the Maravilha Diamond Project.
The diamond drilling programme was concluded on July 20, 2018 and included the
completion of 9 (nine) drill holes for a total of 736,33 meters drilled and distributed on 4
(four) drill section approximately 40 meters apart. As a result of the drilling programme,
7 (seven) drill holes intersected the M3 kimberlite pipe with widths ranging from 0.3
meters up to 20.18 meters. In total, 77.00 linear‐meters of kimberlitic material is available
for further analysis.
M3 KIMBERLITE
HOLE_ID METERS
DRILLED
KIMBERLITE
INTERVALS (m)
MAR‐DDH‐001‐18 31.65 0.00
MAR‐DDH‐002‐18 46.20 12.01
MAR‐DDH‐003‐18 28.50 6.83
MAR‐DDH‐004‐18 104.70 9.43
MAR‐DDH‐005‐18 122.15 9.73
MAR‐DDH‐006‐18 71.65 20.18
MAR‐DDH‐007‐18 88.65 0.00
MAR‐DDH‐008‐18 124.58 0.30
MAR‐DDH‐009‐18 118.25 18.52
TOTAL 736.33 77.00
Table 01 – Kimberlite drilling intervals on M3 kimberlite intrusion.
The M3 kimberlite is a tabular body extending lateraly on a northeast‐southwest direction
and hosted on a biotite granite intrusion. Ramifications such as dyke‐like structures filled
by kimberlitic material are present on the northeastern sector of the main M3 body,
suggesting a complex intrusion system.
Figure 05 – Drill intersection on M3 kimberlite intrusion.
At least, two different fácies have been recognised and described as Tufisitic Kimberlite
(“TK”) which is locally brecciated (“TKB”) and an Hypabissal Kimberlite (“HK”). A transition
zone between TK and HK was also present in some intersection.
Figure 06 – Drill core from M3 kimberlite intrusion.
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 41 exploration
licences and applications across 76,426 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 Catalao and 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.