THE Chapada Diamantina Project includes the Salvador 1 diamond-bearing kimberlite pipe and five other kimberlite bodies. The transaction also includes De Beers exploration databases and mineral licenses elsewhere in the region. De Beers has found 243 diamonds totaling 8.55 carats in 144 cubic meters of “mini-bulk” samples that were collected in the region.%%Following completion of this transaction, Brazilian Diamonds plans to focus its attention on the Salvador 1 kimberlite pipe, where De Beers said it found diamonds in initial tests. The company wants to do bulk sampling of the pipe as soon as practicable.
De Beers will also get 1 million shares of Brazilian Diamonds in the event that a kimberlite pipe in the area covered in the agreement is confirmed to contain more than 200 carats of diamonds. The diamond mining major also retains the right to reacquire up to 40 percent of any kimberlite discovery confirmed to contain more than 200 carats of diamonds, upon payment of 300 percent of Brazilian Diamonds’ exploration expenditures to that date.
%%Brazilian Diamonds is a Brazil-based exploration company that is focused on the discovery of kimberlites in the state of Minas Gerais, with the goal of becoming a significant producer of diamonds. Shares are traded on the Toronto Stock Exchange and London’s Alternative Investment Market.