Diagem’s crater facies kimberlite

Diagem Inc. reports that drilling has confirmed crater facies kimberlitic rocks on two targets on its Chapadao project located in the Juina diamond district of Mato Grosso, Brazil.

As of March 21, 2008, 780.5 metres of core drilling have been completed in 12 holes to depths ranging between 47 and 100 metres. The holes are being drilled using a 100 metre grid pattern. Drill holes 01, 03, 05, 07 and 09 (in progress) are testing target Pandrea 02 with an interpreted surface area of 31 hectares. Holes 02, 04, 06, 08, 11 and 12 (in progress) are drilling the 11 hectare Pandrea 05 target. Crater facies kimberlitic rocks have been intersected in every hole. Hole 05 recorded crater facies kimberlitic rocks down to a depth of 98.86 metres.

Denis Francoeur, CEO of Diagem said, that the purpose of the 7,500 metre drill program is primarily to define the shape and composition of preserved kimberlite craters while attempting to intersect the underlying carrot-shaped portion of the kimberlite bodies referred to as the “diatreme”.

Geological observations suggest that diatreme material may also outcrop in certain localities. The shape and size of the kimberlite craters and of the underlying kimberlite diatremes are a function of several factors including the nature of the host-rock. Kimberlite explosions in less-competent host rocks will have a tendency to create craters much larger than the underlying diatreme. It is early in the drill program and the Chapadao kimberlite emplacement environment is still not fully understood. We are confident, however, about the potential of the Chapadao to host a significant primary diamond deposit, he said.

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