Vaaldiam Resources Ltd.: Record Diamond Price of $800 Per Carat for Chapada Production
TORONTO, ONTARIO–(Marketwire – July 14, 2008) – Vaaldiam Resources Ltd. (TSX:VAA) reports that the latest diamond sale from its 100% owned Chapada Diamond Mine, in the State of Mato Grosso, Brazil achieved a record price of US$ 800 per carat. A total of 1,967 diamonds weighing 1,116 carats, an average of 0.57 carats per stone, were sold for gross proceeds of US$ 892,708.
Included in the parcel were five stones greater than 10 carats in weight, which were sold for a total of US$ 510,039, or US$ 5,791 per carat. The largest diamond in the parcel was a 30.96 carat diamond which was sold for US$ 230,033, or $7,430 per carat. Photos of the diamond are available for viewing on the Company’s website at
Special Stones greater than 10 carats ——————————————————————– —- Stone Weight__________Gross Sales Value US$__________Value Per Carat US$ ——————————————————————– —- 30.96 carats______________________$ 230,033______________$ 7,430 / carat ——————————————————————– —- 19.31 carats______________________$ 166,163______________$ 8,605 / carat ——————————————————————– —- 12.99 carats______________________ $ 34,424______________$ 2,650 / carat ——————————————————————– —- 12.89 carats______________________ $ 25,780______________$ 2,000 / carat ——————————————————————– —- 11.92 carats______________________ $ 53,640______________$ 4,500 / carat ——————————————————————– —- TOTAL: 88.07 carats______________ $ 510,039______________$ 5,791 / carat ——————————————————————– —-
Ken Johnson, Chairman and Chief Executive Officer of Vaaldiam commented that “we are extremely pleased with the high sale values received for the most recent diamond production from our Chapada Mine. The sales value per carat for this parcel is 99% higher than the average sales value per carat received over the prior 12 months and reflects strong market demand and high prices for the large, high quality diamonds recovered from the Chapada deposit.”
Including the latest sale, over the past 12 months of operation the Chapada Mine has sold a total of 13,294 carats of diamonds for total gross proceeds of US$ 5,783,040 or an average value of US$ 435 per carat.
Operational Improvements Underway At Chapada
Vaaldiam is currently implementing a series of operational changes at its Chapada mine to lower operating costs. The Company recently terminated its contract with AGN Transportes Ltda. a contract mining company in order to operate its own fleet of hauling trucks and excavators. Operating its own mining and trucking equipment is expected to significantly reduce total operating costs. In addition to changing to its own mining fleet, Vaaldiam intends to install a mobile in-pit screening plant which will allow the washing and screening of the run-of-mine ore at the mining face, thereby reducing the amount of material required to be transported to and from the Chapada recovery plant by approximately 65%. Processing operations at Chapada have been temporarily suspended to implement these operational changes. Operations are expected to re-start in late August.
In addition to production from Chapada Mine, Vaaldiam holds a 100% interest in the Duas Barras Mine in the State of Minas Gerais, Brazil. The Duas Barras Mine commenced commercial production in September 2007 and during the past six months has sold a total of 31,641 carats of diamonds for total gross proceeds of US$ 5,185,235 or an average value of US$ 164 per carat. In addition, gold sales from the Duas Barras Mine to date have totalled US$ 674,546. Vaaldiam is currently expanding production in the vicinity of the Duas Barras mine through the acquisition of RST Recursos Minerais Ltda., which provides the Company with a second 2,000 tonne per day mining operation in this district.
This release has been reviewed by Katya Masun, P.Geo., who is a qualified person under National Instrument 43-101. For additional information regarding Vaaldiam please visit www.vaaldiam.com.
This press release contains certain forward-looking statements. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; changes in project parameters as plans continue to be refined, future prices of resources; possible variations in reserves, grade or recovery rates, accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward- looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
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