BRC DIAMONDCORE UPDATES EXPLORATION AT SILVERSTREAMS PROJECT

Transcription

1 BRC DIAMONDCORE UPDATES EXPLORATION AT SILVERSTREAMS PROJECT Toronto, Canada and Johannesburg, South Africa June 11, 2008: BRC DiamondCore Ltd. (the "Company") (TSX BCD; JSE BCD) is pleased to provide the following update on bulk sampling and exploration drilling being conducted by the Company on the Company's Silverstreams Project in the Northern Cape Province of South Africa. The Silverstreams Project, which is the most advanced of the Company's alluvial diamond projects, covers 3,589 hectares and is located on the northern bank of the Orange River some 14 kilometres from the town of Prieska. Highlights A total of 1, carats ("ct") have been recovered from bulk samples at an average recovered grade of 0.27ct per hundred tonnes. 713 vertical percussion boreholes (total length of 6,019 metres) have been drilled over the property. Bulk Sample Results The table below summarizes the results from all bulk samples taken to date at Silverstreams: SAMPLE LOCALITY VOLUME TREATED (tonnes) STONES RECOVERED AVE. STONE SIZE (ct) CARATS RECOVERED GRADE (cpht) (1) BOTTOM SCREEN SIZE (mm) TOP SCREEN SIZE (mm) NN1 Midlings NN1 12, NN1 TOTAL/AVERAGE 12, PDJ1 Bottoms PDJ1 17, PDJ1 TOTAL/AVERAGE 17, SS1 SS1 4, SS1 TOTAL/AVERAGE 4, SS2 SS2 48, SS2 TOTAL/AVERAGE 48, SS3 Midlings SS3 25, SS3 Bottom 40, SS3 TOTAL/AVERAGE 65, SS4 Midlings SS4 18, SS4 Bottom 26, SS4 TOTAL/AVERAGE 45, SS5 Midlings SS5 30, SS5 Bottom 9, SS5 TOTAL/AVERAGE 39, SS6 Bottom SS6 12, SS6 TOTAL/AVERAGE 12,

2 2 BOTTOM TOP VOLUME AVE. RECOVERED STONES SCREEN SCREEN SAMPLE LOCALITY TREATED STONE CARATS GRADE RECOVERED (tonnes) SIZE (ct) (cpht) (1) SIZE SIZE (mm) (mm) SS7 Midlings SS7 26, SS7 Bottom 54, SS7 TOTAL/AVERAGE 80, SS8 Bottoms SS8 21, SS8 TOTAL/AVERAGE 21, SS9 Bottom SS9 37, SS9 TOTAL/AVERAGE 37, SS10 Bottoms SS10 21, SS10 TOTAL/AVERAGE 21, SS11 Bottoms SS11 10, SS11 TOTAL/AVERAGE 10, SS12 Bottoms SS12 16, SS12 TOTAL/AVERAGE 16, SS13 Bottoms SS13 19, SS13 TOTAL/AVERAGE 19, SS14 Bottoms SS14 21, SS14 TOTAL/AVERAGE 21, SS15 Bottoms SS15 5, SS15 TOTAL/AVERAGE 5, SS16 Bottoms SS16 17, SS16 TOTAL/AVERAGE 17, SS17 Bottoms SS17 19, SS17 TOTAL/AVERAGE 19, SS18 Bottoms SS18 33, SS18 TOTAL/AVERAGE 33, GRAND TOTAL/AVERAGE 551, , (1) "cpht" refers to carat per hundred tonnes. The bulk samples taken to date indicate a range of recovered (fully diluted, delivered to Pan Plant) sampling grades between 0.03cpht to 0.97cpht (with a weighted average of 0.27cpht). In general, the Basal Gravels exhibit higher recovered grades (averaging ~0.3cpht) than the Suspended Gravels (averaging ~0.13cpht). These recovered sampling grades, while lower, are in range of the average 0.5cpht grade estimated for the Inferred Mineral Resource at Silverstreams reported by independent consultants, Venmyn Rand (Pty) Limited, in the technical report dated July 31, 2007 and entitled "National Instrument Technical Report Prepared on the Mineral Assets of Diamond Core Resources Limited in the Northern Cape and Free State Provinces, South Africa" (the "NI Technical Report"). It should be noted, however, that the grade reported in the NI Technical Report was based on records of recovered grades from similar gravels on neighboring properties and was classified as Inferred due to the low level of confidence in this estimate. The bulk sampling grades set out in the table above therefore represent the first recovered grades from Silverstreams and additional bulk sampling, accompanied by a re-assessment of the volume of gravels on the property, will be required in order to provide a better estimate of the grade of the entire property. These results do, however, confirm the diamondiferous nature of the gravels, as well as the localization of some very high grade areas (~1.0cpht).

3 3 Among the 1,465.25cts recovered to date, the bulk samples have produced a number of exceptional stones, including a 77.34ct diamond which was sold for US$904,724 and a 13.65ct diamond which was sold for US$518,180 (see the Company's press release dated June 3, 2008, a copy of which can be obtained from SEDAR at Diamond Values from Samples An initial independent valuation of the diamonds recovered to date at Silverstreams by independent diamond consultant, Mr. R. Ferraris, indicated a conceptual weighted average diamond value of US$2,089/ct (this assessment only related to diamonds recovered to date from bulk samples at Silverstreams and not to the entire Silverstreams property). With respect to the diamond values realized through the three tender sales carried out to date by the Company, the average value for the diamonds recovered at Silverstreams has been significantly increased by a 77.34ct diamond which sold for US$11,698/ct and a 13.65ct diamond which sold for US$37,962/ct. These have resulted in a realized weighted average diamond value for all diamonds recovered to date at Silverstreams of US$2,511.19/ct (see the Company's press release dated June 3, 2008 for additional information regarding the Company's most recent tender of diamonds). Drilling The Silverstreams Project has seen numerous phases of percussion drilling and gravel orebody modelling, each representing a refinement of the previous phase. Vertical percussion drilling over the property is ongoing in order to refine the geological model of the gravels over the property. Initial drilling was conducted on a 100 metre x 250 metre grid. Current in-fill drilling is being done at a 100 metre x 50 metre grid in general, and in some areas this grid is being infilled at 25 metre x 25 metre drill spacing in order to develop a detailed understanding of the gravel horizon development on Silverstreams. The table below summarises the amount of percussion drilling conducted on the property to date: NO. HOLES METERS DRILLED AREA COVERED 713 6,019m 8km 2 All holes are logged by a qualified geologist according to, among other things, gravel type, gravel quality, depth to bedrock, basal gravel thickness, total gravel thickness and overburden thickness. A detailed description of the sampling method and approach, sample preparation, analysis and security has been detailed in the NI Technical Report. Bulk Sampling/Trial Mining The Company began bulk sampling of the Silverstreams primary gravels in July 2007 in order to better understand the gravel morphology, grade, degree of calcretisation, stone value and sample metallurgical mass balance. This bulk sampling is ongoing with the locality of the bulk samples being guided by the results from the vertical percussion drilling. A detailed description of the sampling method and approach, sample preparation, analysis and security has been detailed in the NI Technical Report.

4 4 Sample Description Diamondiferous gravels at Silverstreams occur between 20 metres and 60 metres above the present day Orange River. These gravels are deposited on a planar surface comprising shale and tillite of the Dwyka Group, which consists almost entirely of tillite, with a variable clast assemblage of meta-basalt, quartzite and dolomite with minor vein quartz, jasper, iron stone and agate. The tillite bedrock is relatively soft and homogenous and is not amenable to pot-hole formation, and hence fairly even. The alluvial diamonds are found in the following gravel deposits at Silverstreams: o o the Rooikoppie Gravels; and the Primary Gravels which include: the Suspended Gravels (Midlings); and the Basal Gravels (Bottom). The Rooikoppie varies in thickness from a few centimetres up to 2 metres and has an average thickness of 0.25 metres. The deposit consists of poorly rounded pebbles of BIF, chert, jasper, quartzite and lava, and typically rests on sand, gravel or in places a hard, semi-continuous layer of calcrete and silcrete. The Primary Gravels are entirely covered by calcrete, aeolian sand and in places Rooikoppie Gravel, and overlie relatively soft tillite bedrock. These gravels are composed mainly of rounded clasts of Ventersdorp lava as well as BIF, agate, jasper, vein quartz and quartzite. The gravel is partially cemented in places, with impersistent sand lenses present. The Primary Gravels have been deposited on a planed, slightly undulating bedrock which slopes gently southwards towards the Orange River. These Primary Gravels form the focus of the Company's current bulk sampling/trial mining activities. The overburden, which occurs between the Rooikoppie and Primary Gravels, consists of a hard layer of calcrete and silcrete capping, which averages between 0.5 metre and 1.0 metre in thickness. This calcrete capping grades into a soft calcrete and sand sequence between 1 metre and 3 metres thick. To date, no Rooikoppie Gravels have been bulk sampled and are currently treated as overburden where present. In general, the Suspended Gravels have been processed separately from the Basal Gravels but some bulk samples have combined these units. Since the current bulk sampling/trial mining positions are being determined from the drilling results, the recovered grades tend to be more representative of the Primary Gravels in the most prospective areas at Silverstreams. Sample Treatment All bulk samples have been batch treated at the Company's Silverstreams bulk sampling plant. While this plant has not been accredited in terms of ISO/IEC 17025, the plant is subject to internal protocols and QA/QC procedures which have been audited and approved by independent consultants, Venmyn Rand (Pty) Limited ("Venmyn"), in terms of the plant's adherence to industry standards. These include: surveying of the sample area before sampling by a qualified, independent surveyor; surveying of the sample area after sampling by a qualified, independent surveyor; delivering the sample directly into the plant, or stockpiling the sample material in a sterile, demarcated location; purging the plant between each sample by processing ~20t of barren material; and conducting weekly tracer tests on the pans, DMS and X-Ray to ensure plant efficiency.

5 5 The gravel undergoes primary concentration at the Silverstreams bulk sampling plant, which comprises: a primary 670tph trommel screen; magnetic seperators to remove banded ironstone; four 16ft rotary pan plants; a 50tph Bateman DMS unit; four Flowsort X-Ray machines; three Bateman GB1000 automatic grease belts; and hands-off recovery of diamonds in a glove box. The +2mm -32mm material is treated through the rotary pan plant and DMS section. The +32mm -50mm material is delivered separately to an attritioner followed by the grease belts. No tailings audits have been conducted. Strict security controls are in place and the storage and movement of the diamonds are recorded within a diamond register which documents the "chain of custody" and is used to reconcile both the number of diamonds and carats of each parcel produced. Qualified Person Neil Mc Kenna, an employee of Venmyn, is the "qualified person" (as such term is defined in National Instrument ) who prepared and is responsible for the technical information in this press release. Mr. Mc Kenna (Pr.Sci. Nat.) recently conducted a site inspection, and has verified the data disclosed in this press release. The verification of the sampling data has been done retrospectively and has been limited to a review and audit of the sampling data, databases and sampling records provided to Mr. Mc Kenna by the Company. The Company's geologist on site was responsible for supervising the sampling operations. Additional information with respect to the Company's Silverstreams Project is contained in the NI Technical Report. A copy of this report can be obtained from SEDAR at BRC DiamondCore Ltd. is an African-focused diamond explorer active in South Africa and the Democratic Republic of the Congo (the "DRC"). Led by a management team with extensive experience in diamond exploration and mine development, the Company has a broad spectrum of projects ranging from advanced stage trial mining operations through grass-roots exploration. The Company's projects comprise both prospective alluvial gravels and primary kimberlite targets. 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, or contact: In Toronto: Martin D. Jones, Vice President, Corporate Development, at (416) or In Johannesburg: James Duncan, Russell & Associates, at Forward-Looking Statements: This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to diamond prices, future diamond sales, future production, exploration results, potential mineralization and the Company's plans with

6 6 respect to the exploration and development of its properties) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, the possibility that future exploration results will not be consistent with the Company's expectations, changes in equity markets, changes in diamond markets, foreign currency fluctuations, political developments in South Africa or the DRC, changes to regulations affecting the Company's activities, uncertainties relating to the availability and costs of financing needed in the future, delays in obtaining or failure to obtain required project approvals, the uncertainties involved in interpreting geological data and the other risks involved in the diamond exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.