May 2 2017
Five Star Diamonds Limited is very pleased to provide the following update on recent activities in Brazil.
Highlights
- Successful completion of the pilot mining and processing programme at the Catalao Diamond Project.
- This has highlighted the potential for a commercial operation within the oxide zones of the Cat1A, Cat1B and Cat1C kimberlite pipes.
- World renowned diamond processing group, ADP Group (www.adpgroup.com), has now been appointed to complete design work and construction of the oxide commercialization project.
- The oxide commercial plant is largely now on site and in the final design and pre construction phase. Approximately 80% of capital expenditure has been completed.
- The oxide commercial plant will utilize a Dense Media Separator (DMS) to recover concentrates which will then be processed at the company's existing diamond recovery plant in Catalao City.
- Key site appointments are now being made in anticipation of the commencement of construction and an expanded mining operation.
- The Company expects to be able to provide further updates in the coming months including an estimation for the commencement and potential sale of its first commercial diamond production.
- The existing pilot plant is now being demobilized and packed for relocation to the Companies 100% owned Jaibaras Diamond Project in Para State, in northern Brazil.
Five Star Diamond's business is diamond development. It 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.
The flagship project of Five Star Diamonds is the 100% owned advanced stage Catalao diamond project located in the famous Coromandel diamond district of Brazil. The Project comprises one exploration licence covering 1,999.42 hectares. In addition, the Company has submitted applications for three exploration licences over proximate areas covering a total of 5,998.37 hectares.
In 1853, a diamond discovered in Coromandel became the first large Brazilian diamond whose history is fully authenticated. It was named "Estrela do Sul" (Star of the South) and weighed 261.9 carats. Additional notable stones discovered in the same area include one weighing 122.5 carats (found four years later, in 1857). Other notable stones authenticated are 118 carats (1929), 108 carats (1940), and 174.5 carats (1954).
A pilot plant was constructed by the Company in Catalao and commissioned, and an initial mining and pilot processing program was completed on the oxide zones at three diamond bearing kimberlite pipes. A feasibility study is currently underway to evaluate the fresh rock zone.