Five Star Diamonds Discovers New Kimberlite in Brazil

Five Star Diamonds Limited (TSXV:STAR) has released the results from an ongoing diamond drilling programme at the Catalao project. The findings highlight the discovery of a new kimberlite.

Five Star Diamonds is focused on developing its position in the Brazilian kimberlite diamond sector. The precious gem explorer currently owns 23 diamond projects comprising an aggregate of 41 exploration licences and applications across 76,426 hectares.

As quoted from the press release:

CATALAO DIAMOND PROJECT

The Catalao diamond project is located in Goias State, Brazil and contains an indicated mineral resource of 517,000 tonnes grading 23.5 cpht and additional inferred mineral resources of 7.76 Mt grading 26.7 cpht, both estimated based on a US$200/ct average carat value. The actual project resources were distributed in three kimberlite pipes named CAT-01A, CAT-01B and CAT-01C (together “CATs-01ABC”). The indicated resources represent the upper oxide zone of the three pipes and the inferred resources are related to the fresh material.

As previously announced, the company has acquired the majority of the equipment to commence mining at the oxide zone. A dense media separator plant and major equipment is already on site. The construction of the DMS plant is expected to take 6-8 months from receipt of final funding with production of the oxide material from CATs-01ABC to commence shortly thereafter. The decision to bring the Catalao mine in to production, specifically CATs-01ABC, is not based on a feasibility study establishing mineral reserves demonstrating economic and technical viability and thus may increase uncertainty and specific risks of failure associated with this production decision.

In early August 2018, Five Star started a diamond drilling programme to test new exploration targets which were selected based on the results of a detailed ground magnetic survey and a shallow auger drilling programme previously developed by the company since exploration activities started in 2015.

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