Wrap Text
BCD - BRC Diamondcore Ltd - BRC Diamondcore Resumes Diamond Exploration in
Northern DRC and Enters into new joint venture with Rio Tinto
BRC DIAMONDCORE LTD.
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: BCD & ISIN Number: CA05565C1095
("BRC DiamondCore" or "the Company")
BRC DIAMONDCORE RESUMES DIAMOND EXPLORATION IN NORTHERN DRC AND ENTERS INTO NEW
JOINT VENTURE WITH RIO TINTO
Toronto, Canada - January 28, 2011. BRC DiamondCore Ltd. ("BRC" or the
"Company") (TSX - BCD; JSE - BCD) is pleased to announce that it plans to resume
exploration for diamonds over properties (the "DRC North Project") in Province
Orientale in northeastern Democratic Republic of the Congo (the "DRC"). This is
as a result of a recent analysis of samples previously collected during the
earlier reconnaissance phase of the exploration program, but not analysed at the
time due to budget constraints. The analysis revealed the presence of micro
diamonds and other indicators which typically indicate the presence of primary
sources of kimberlite diamonds proximal to the area. The results are described
in more detail below.
The Company is also pleased to announce that it has entered into a new joint
venture arrangement with Rio Tinto Mining and Exploration Limited ("Rio Rinto"),
pursuant to which Rio Tinto will fund the proposed new exploration program over
the DRC North Project up to and including a pre-feasibility study (assuming on-
going satisfactory results). At that stage, BRC would have a 30% interest in
the DRC North Project. Thereafter, funding would be in proportion to equity.
The reconnaissance stream sampling program over the DRC North Project was
carried out by BRC in part under the terms of an option agreement with the
holder of the exploration permits, but work in the area was suspended due to a
force majeur which was lifted on January 20, 2011. Now that the force majeur
has been lifted, BRC has mobilized a geological exploration team to commence a
follow-up program of more detailed sampling over the highly anomalous areas.
This phase is planned to be completed by May 2011.
The said option agreement related to 44 exploration permits (the "Option
Permits") covering ground in Province Orientale in northeastern DRC some 200 km
ENE of Kisangani. The Option Permits are central around Bafwasende and cover
7,313 kmSquared. The area is underlain by Archaean basement, which in the south
is covered by Proterozoic platform sediments.
A large number of alluvial diamond diggings are concentrated on the ground
covered by the Option Permits, but the primary kimberlites sources for the
diamonds have never been found. BRC also holds two additional exploration
permits in its own name directly north of the said 44 permits, and are 750
kmSquared in extent.
During the reconnaissance stream sampling program, 285 stream samples were
collected (266 over the Option Permits ground and 19 over the BRC permits
ground) on an approximate 1-sample-per-25 kmSquared grid. Each sample measured
30 litres of screened material (-0.7 to +0.4mm fraction). The samples were hand
gravitated in the field and further concentrated by a mechanical jig in
Kinshasa, DRC after which the sample concentrates were sorted at Rio Tinto`s
Heavy Mineral Sorting Laboratory in Perth, Australia. Chemical analyses were
subsequently carried out on visually positive grains by X-ray microprobe methods
using energy dispersive spectroscopy for the major element oxides and laser
ablation methods where trace element data were obtained.
The results have highlighted an area of interest over the central part of the
Option Permits ground and on the northern and south-western parts of the BRC
permits ground. A number of samples from the central Option Permits ground have
returned ilmenites, chromites (including several diamond-inclusion types), an
eclogitic garnet and micro-diamonds (15 in total). There is a high proportion
of yellow to yellow-brown diamonds with nitrogen chemistries indicating multiple
sources. The restricted colour range of the diamonds perhaps suggests similar,
and proximal rather than distal source(s). Some of the samples from the BRC
permits ground also contained mantle minerals (relatively un-abraded ilmenite
and chromite) which indicate that primary sources for diamonds are possibly
proximal to the area.
Commenting on this, Dr. Mike de Wit, the Company`s President, said, "BRC has
been through some difficult times in the last two years, primarily a function of
the diamond market, but these are very promising new developments and indicate
that the primary sources for the diamonds, which have a widespread occurrence
over this large part of central Africa, are likely present in the region. The
local small-scale miners, however, have focussed primarily on recovery of
alluvial diamonds rather than looking for kimberlites. The JV with Rio Tinto
means that the proposed exploration program will be funded. BRC is thus
fulfilling its core competence of diamond exploration in the DRC. In addition,
the Company`s joint venture of more than a year with Rio Tinto on iron ore
exploration continues to progress."
Qualified Person
Dr. Mike de Wit, President of the Company and a "qualified person" (as such term
is defined in National Instrument 43-101), has reviewed the technical
information in this press release.
BRC DiamondCore Ltd. is an African-focused diamond explorer with projects in the
DRC. Led by a management team with extensive experience in diamond exploration
and mine development, the Company works in a systematic and responsible manner
to discover, assess and develop diamond resources for the benefit of its
shareholders and local stakeholders.
For further information, please visit our website, www.brc-diamondcore.com, or
contact:
In Toronto: Martin D. Jones, Vice President, Corporate Development, (416) 366-
2221 or 1-800-714-7938.
In Johannesburg: Brian P. Scallan, Vice President, Finance, +27 82 902 6273
JOHANNESBURG
02 February 2011
Sponsor
Arcay Moela Sponsors (Proprietary) Limited
Date: 02/02/2011 15:00:03 Supplied by www.sharenet.co.za
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