Vaaldiam Resources first sale from Duas Barras returns US$1.05 million for 6,421.77 carats

Vaaldiam Resources Ltd. has completed its first sale of diamonds from its 100%-owned Duas Barras Mine for US$ 164.16 per carat, yielding total gross proceeds of US$1,054,227.74. This first production parcel contained 24,730 diamonds with a total weight of 6,421.77 carats, and represented production generated during the commissioning of the production plant at Duas Barras during the period from late May to August, and the first ten days of commercial production which commenced on September 1, 2007. An additional 17,538.39 carats of diamonds are currently in the process of being granted a Kimberley Certificate to allow the remaining 2007 production to be exported from Brazil to Antwerp, Belgium for sale.

The 6,421.77 carats of diamonds contained in this first sales parcel were recovered from 26,519.54 bank cubic metres (bcm) of gravel at a recovered diamond grade of 0.24 carats per bcm. The following table provides an unaudited summary of the gross revenues and estimated direct operating costs (net of estimated gold proceeds) for the sales period based on the sale of the diamond parcel, and the projected sale of the gold concentrate at current market prices.

Ken Johnson, President and Chief Executive Officer of Vaaldiam commented that the first sale of diamonds produced at the Duas Barras mine is another significant milestone for the Company. The results achieved since startup of operations are excellent, with diamond and gold recoveries being well above the parameters used in our feasibility study. The first sale of diamonds achieved an estimated operating margin of US$111 per carat, which reinforces the Duas Barras mine as a highly profitable operation.

In addition to production from its new Duas Barras Mine, Vaaldiam holds 100% interest in the Chapada Diamond Mine in Mato Grosso State, Brazil. The Chapada Mine has produced over 28,000 carats of high quality diamonds, at an average sales value of US$400 per carat. Vaaldiam intends on utilizing cash flow from its alluvial operations to fund the Company’s kimberlite exploration projects in Brazil.

Vaaldiam is currently developing its 100% owned Braúna kimberlite project which is advancing towards a feasiblility study later this year, and its 100% owned Pimenta Bueno project where the Company is currently mini-bulk sampling two of the 38 kimberlite pipes that have been discovered on the property.

Story link: Vaaldiam Resources first sale from Duas Barras returns US$1.05 million for 6,421.77 carats