Brazilian Share Discussion Threads

[currypasty] 09/11/2004 09:24

09 November 2004





Brazilian Diamonds Acquires Santo Antonio and Abaete Valley Data Bases from De
Beers

De Beers Increases Shareholding in Brazilian Diamonds

Brazilian Diamonds is pleased to announce the purchase of two extensive diamond
exploration datasets from the De Beers Group. These data sets cover areas of
high priority, exploration interest in the Santo Antonio do Bonito and Abaete
River drainages.

This latest data acquisition, when combined with the recently announced purchase
of De Beers' Serra da Canastra dataset (September, 20, 2004), will further
extend Brazilian Diamonds' unmatched capability for diamond exploration in Minas
Gerais, Brazil and permit significantly accelerated exploration of the company's
high priority exploration targets in those areas.

Santo Antonio do Bonito dataset:

The Santo Antonio do Bonito river is one of the most famous diamond producing
rivers in Brazil, with one 5 kilometre stretch of the river having produced at
least 9 very large gem diamonds, each in excess of 300 carats.

As a consequence of this remarkable history and the area consistently producing
gem quality alluvial diamonds, the Santo Antonio do Bonito has long been a
priority target for Brazilian Diamonds' alluvial and bedrock (kimberlite)
exploration programs. Brazilian Diamonds has therefore spent several years
assembling a strategic portfolio of licenses covering the entire river drainage,
including the recent acquisition of a portfolio of licenses that has extended
the area covered to well into the headwaters of the river system.

Significant exploration advances have been made in the past year following
prioritising of exploration activity on the search for bedrock sources of
diamonds found in the area. This has now resulted in the identification of
diamond indicator minerals including kimberlitic pyropes and chromites which
appear to be derived from a relatively small area, near to the headwaters of the
Santo Antonio do Bonito River.

The De Beers Santo Antonio do Bonito dataset is centered over Brazilian
Diamonds' license portfolio and extends well beyond the present boundaries of
our portfolio in all directions. Data coverage consists of regional airborne
magnetics over an area in excess of 186,000 hectares, 22,400 indicator mineral
samples, ground geophysics over 297 anomalies, drilling results for 184
anomalies, and 192,972 micro-probe analysis. As with the recently announced
Serra da Canastra data purchase, De Beers will also be providing Brazilian
Diamonds with physical samples in order that additional testing using advanced
analytical procedures, including trace element determination and radiometric
dating, can be undertaken.

While the company's focus in this area has been on kimberlite exploration, our
joint venture partners CODEMIG and Andrade Gutierrez have proceeded with the
implementation of a CDN$800,000 feasibility study on the company's substantial
alluvial inventory. The study is being conducted with a view to making a final
decision on the commencement of large scale alluvial diamond mining in the
downstream portions of the Santo Antonio do Bonito River. It is expected that a
decision to commence large scale dredge based operations should be made in the
second half of 2005.

Rio Abaete dataset:

The Abaete River like the Santo Antonio do Bonito river is another famous
alluvial diamond source in Brazil, with a long history of producing valuable
gems including high-quality fancy coloured diamonds.

Brazilian Diamonds has focused exploration activity over the past several years
on the Abaete River drainage and currently has a joint venture alluvial
operation recovering diamonds on the downstream portion of the river near its
confluence with the Sao Francisco River. The company's license portfolio in this
area was substantially increased with acquisition of Canabrava's Brazilian
assets in 2003. The Canabrava acquisition also included a significant amount of
exploration data over areas within the Abaete River drainage and two high
priority target areas where the company is currently undertaking exploration
activities.

The De Beers Rio Abaete data set extends over 600,000 hectares, covering the
entire river valley with airborne magnetics and other data. This coverage
includes the license areas in the headwaters of the river and areas covered by
the joint venture alluvial operations downstream. The data includes 19,780
indicator mineral samples, 35 kimberlites and 21,000 microprobe analyses and as
with the other data sets acquired, these samples will be the subject of advanced
analytical procedures, including trace element determination and radiometric
dating

Terms of the acquisition:

As consideration for the acquisition of the Santo Antonio do Bonito and Rio
Abaete databases Brazilian Diamonds has paid the De Beers Group CDN$150,000 in
cash and issued 1.5 million Brazilian Diamonds shares for a deemed value of CDN$
1,100,000 or CDN$0.75 per share for a total transaction value of CDN$1,250,000.
Brazilian Diamonds has also issued De Beers 500,000 warrants to acquire further
shares in the company at any time in the next three years at price CDN$2.00. As
with the previously announced transaction, this transaction does not involve any
"back in" rights, royalties or other financial commitments.

Ken Judge, the Chairman of Brazilian Diamonds commenting on these transactions
said: "Brazilian Diamonds success in acquiring these extensive databases from De
Beers will significantly accelerate the Company's strategy of selectively
assembling and re-evaluating data as an aid to making new diamond discoveries.
In total, we have added proprietary airborne geophysics, 63,000 samples, and
284,908 microprobe analyses over our 3 highest priority areas covering 1.2
million hectares. That is in addition to the substantial databases we already
own. Based on our experience with the original Canastra area data we acquired
from De Beers with the purchase of the diamondiferous Canastra 1 kimberlite pipe
2002, we are confident that the new De Beers data will meet or exceed the
highest industry standards and will rapidly advance our exploration efforts."

"We are already a shareholder in Brazilian Diamonds as a result of the Canastra
deal announced last month. The sale of these databases to Brazilian Diamonds
Limited is a logical and positive extension of our existing relationship. These
transactions we hope will assist Brazilian Diamonds' efforts in discovering new
economic sources of diamonds in Brazil", said Bill McKechnie, De Beers Group
Director of Exploration.

Editors' Note:- Brazilian Diamonds is a leading Brazil-based exploration company
whose main purpose is the discovery of kimberlites on its extensive properties
of 230,000 hectares in the State of Minas Gerais, with the goal of becoming a
significant producer of diamonds. The company has a fully operational diamond
analysis laboratory at Patos da Minas, Minas Gerais which is strategically
located near to its properties in the Santo Antonio and Coromandel area. The
company has a staff of 68 almost all of who are located at the company's
facilities in Brazil and includes 4 full time geologists.

The company's strategy for non-core activities on its properties is to form
joint ventures: it has a gold exploration joint venture with Hidefield Gold PLC
in which it also holds a significant equity stake, and a CDN$800,000 feasibility
study is currently underway for a joint venture for the mining of alluvial
diamonds on its properties in the Santo Antonio river drainage with two
important Brazilian companies: CODEMIG, the state owned mining development
organisation and Mineracao Rio Novo Ltda., a wholly owned subsidiary of Andrade
Gutierrez SA, one of the country's largest civil engineering firms.

[barter] 08/11/2004 20:42

Was reading the presentation on the train last Wednesday but being more of a gold investor, rather than diamonds, the details went over my head. The general content looks good though including some of the large pipes detailed.

[outsizeclothes.com] 08/11/2004 20:11

Managed to get my hands on the presentation. Looks very good. Drilling to start on Tucano before the end of the month.
There is a Presidente Vargas in there. All we have to do is find it and dig it out!

[barter] 06/11/2004 19:05

Ken has been doing London and Paris this last week which probably accounts for the rise over the last few days.

[golconda] 06/11/2004 18:04

yes very impressive= over 140 kimberlites = building blocks now in place= ken judge seemes very good indeed

[outsizeclothes.com] 05/11/2004 11:01

Anybody attend their geologist's presentation in London at the end of last month ?
Any feedback ?

[adam] 25/10/2004 12:53

a lower Real would be better as costs are in local currency, sales are in gold currency.

[dogberry202000] 25/10/2004 11:30

With a name like Brazilian Diamonds and its operations firmly placed in Brazil, is this not an interesting currency play too? The Real is doing very well indeed gold-wise. I'm interested because unlike South Africa the Brazilian Govt. are not encouraging an overvalued currency. Any other reasons to buy this one?

[caiman] 21/10/2004 08:07

schober: that is basically correct - it is only worth moving stock from one register to the other when enough of an arbitrage has opened up. It won't normally be done for non-institutional trading, though the market makers will often aggregate orders in London and and fill them with a block of stock from the other pool.

[rickja] 21/10/2004 05:34

At the end of last nights session in Toronto 100k went thru at the days high(tot vol 137k).

[schober] 20/10/2004 10:28

caiman - discussed this with director of consolidated minerals CNM/CSM UK/AU - he agreed thaat there were effectively 2 pools of stock one in uk and one in oz and there was not much interchange which is exacerbated by the time difference - i have long suspected the same is true of canadians witha dual listing

[rickja] 20/10/2004 10:25

Thanks for the feedback. I own 150k listed in toronto, and first started buying when formerly Black Swan (paid 2.5 cad for 1000) then Brex and gold going to usd 275oz banged the final nail in the coffin. Subsequently bought the majority of them between 15-30cts. Despite a dismal historic performance, I feel there substantial promise with this co.,

[adam] 20/10/2004 09:31

the 50k was a buy. the mm had bought stock at 18 and sold to me at 18.25. i suspec after moving the bid up to 18, got hit with 70k.

[caiman] 20/10/2004 09:22

AIM stock can go to Canada and vice versa - just a matter of changing the register. Same goes for most Aussie dual listed stocks. Actually it's nice business for the brokers as there is a chance to take a fat turn out of it.

The problem of non-fungible only comes up when it is actually different stock (Rio Tinto plc in London, Rio Tinto Ltd in Aus for example) or when there is a currency control barrier (South Africa the most obvious example)

[rickja] 19/10/2004 16:34

120k sold on AIM today. Interested to see if similar amounts go thru toronto

[rickja] 17/10/2004 17:41

Comparing certain trade volumes between AIM and TSX it suggests that some AIM listed shares have been "repatriated" to Canada although as far as I know they are not fungible(and now far cheaper than the price that they were issued!!)notably the most recent being, a sale of 100000 in UK with a subsequent buy in Canada with the day ending in a 3ct rise.
I also find it interesting that De Beers have been granted a series of warrants with strikes far in excess of the current market price(cad1.25, 1.50, 1.75, 2.00) with a 3 year life. Also note that "all of a sudden" the directors are the proud owners of 2.8mio share options at a 45ct strike with a 5 year life (ahem!!).
Whilst BDY have still yet to deliver, their newsflow is regular if somewhat factually unexciting, but remains consistantly upbeat re prospects.

[currypasty] 20/9/2004 15:18

LONDON (AFX)- Brazilian Diamonds PLC, a Brazil based exploration company has
acquired the diamond exploration database covering the Serra da Canastra region
of Brazil from De Beers Group.
The deal has a consideration of 2 mln cad to be made up of a 400,000 cash
payment and the remainder in shares.

[burbelly] 13/8/2004 10:57

SD

I am considering a small punt.

[standarddeviation] 12/8/2004 19:04

Burbelly

Just glad not to have a holding now.

sd

[burbelly] 11/8/2004 14:14

Any life here?

[currypasty] 17/5/2004 10:14

RNS Number:7343Y
Brazilian Diamonds Limited
17 May 2004


BRAZILIAN DIAMONDS LIMITED


Trial Mining Commences at Abaete Alluvial Diamond Project


Brazilian Diamonds is pleased to announce that it has reached agreement with
Primeira Gema Comercio, Importacao e Exportacao Ltda ("Primeira Gema")
under which Primeira Gema will commence trial mining at the Company's 100% owned
Abaete Alluvial Diamond Project.


Primeira Gema is a well known Brazilian company with significant foreign
partners which as a group, have been involved for many years in alluvial diamond
mining and the buying for export, of rare, large and coloured diamonds.


Under the terms of the Agreement reached, Primeira Gem will commence trial
mining at Abaete using Brazilian Diamonds' diamond jig plant which has been used
for bulk sampling of a significant volume of diamondiferous gravels delineated
at the project.


Brazilian Diamonds will receive a gross royalty on the value of diamonds
recovered during this trial mining, commencing at 3.5% in respect of the first
US$1 million of production and rising to 7% thereafter.


Primeira Gema has also been granted a six month option to acquire the Abaete
project, including licenses, the diamond jig plant and sundry facilities at the
site for a cash consideration of US$500,000 and an ongoing gross royalty on
production of 3.5%.


Upon the expiry of the option period, if Primeira Gema does not exercise its
right to acquire the project, it is obliged to return the project, including
diamond plant and license areas, in fully rehabilitated condition.


This transaction does not include any rights to kimberlites found within the
license areas, which will remain with Brazilian Diamonds. Should additional
kimberlites be discovered on the license areas, they will be transferred to
Brazilian Diamonds without payment of compensation to Primeira Gema.


The resumption of work at Abaete is an important element of the Company's
strategy to joint venture its significant alluvial portfolio with qualified
third parties whilst at the same time continuing to concentrate on the
exploration of its extensive kimberlite opportunities.

[jungle jim] 27/4/2004 12:34

Cor, licences for 18,000 hectares containing potential diamond kimberlites for a total cost of $23,000. What a bargain!

[currypasty] 27/4/2004 12:19

27 April 2004

BRAZILIAN DIAMONDS LIMITED

Santo Antonio Project Update
INCRIS Acquisition adds to Santo Antonio Portfolio


Brazilian Diamonds Ltd.'s Joint Venture on the Santo Antonio do Bonito alluvial
diamond property has commenced activity on the CDN$800,000 feasibility study
intended to facilitate a final decision on the commencement of large-scale
alluvial mining operations (See February 11, 2004 press release for details).

The feasibility study will involve an additional 3,000m of large diameter Banka
drilling, and up to 6 bulk sample test pits. The work is being conducted and
paid for by COMIG (Companhia Mineradora de Minas Gerais), with the assistance of
both Mineracao Rio Novo (MRN) and Brazilian Diamonds.

The commencement of the feasibility study follows 2 years of due diligence work
already undertaken on the project by the Company's Joint Venture Partners.

Following successful completion of the feasibility study, MRN intends to move
its alluvial mining equipment (including an 8 storey high - 2,000 tonne per day
bucket wheel dredge, and suction mining dredges) from their current operation at
the Domingas alluvial diamond mine to the Santo Antonio property. MRN's
Domingas mine has produced approximately 25,000 carats per year for more than 15
years, and now has an estimated mine life of approximately 2 years.

Brazilian Diamonds' Santo Antonio do Bonito property covers the drainage of the
Santo Antonio do Bonito River which is famous in Brazil for producing very large
gem quality diamonds, including at least 9 stones of between 300 and 727 carats.
These large gems, and many other alluvial diamonds, have been produced by
artisanal miners (garimpeiros) working on channel and terrace gravels upstream
in the river drainage. The Joint Venture is targeting extensive volumes of
alluvial gravels in river flats downstream from this historic garimpeiro
activity. These gravels have been considered to be too deeply buried for
garimpeiros to access, but within reach of MRN's large scale alluvial mining
equipment.

Brazilian Diamonds' own exploration efforts remain focused on the discovery of
the bedrock sources of diamonds in the Santo Antonio do Bonito River valley and
elsewhere in Brazil. The Company's most advanced project is trial mining of the
diamondiferous Canastra 1 kimberlite. Licensing for the Canastra 1 operation is
progressing slightly more slowly than originally foreseen, with operations now
expected to begin in the fourth quarter of this year.

As part of Brazilian Diamonds' strategy of exploring for bedrock diamonds
sources in the Santo Antonio do Bonito River valley, the company is pleased to
announce that it has completed the acquisition of a portfolio of 13 licences
held by INCRIS Mineracao Ltda. These licences cover an area of approximately
18,000 hectares of the River's headwaters and adjacent plateaus and are thought
to include numerous kimberlitic anomalies which will be tested at the Company's
Patos de Minas mineral processing laboratory. This acquisition will also permit
an aggressive follow-up of the alluvial sampling and intrusive body testing
program already underway in the valley.

Under the terms of this transaction, Brazilian Diamonds will pay INCRIS US$8,000
for the transfer of these the licences to SAMSUL Mineracao Ltda, a wholly
owned subsidiary. Brazilian Diamonds has already taken over management of
re-licensing of the portfolio and will assume the cost of paying INCRIS'
outstanding licence fees which are estimated at approximately US$15,000. INCRIS
will also retain a 1% gross royalty over any kimberlites developed as mines on
licences in the portfolio.

[sawbones] 27/4/2004 12:18

Hmmmm interesting! One to watch ....

[currypasty] 26/4/2004 09:04

Hidefield plc has received results of its latest drill holes at the Cata Preta
gold project, Brazil, and is pleased to report high grade mineralization
encountered in the extension of the "Carvoeira" gold deposit announced with
initial results earlier this year. Drill hole CP 311 intercepted a 3.25 metre
interval with an uncut average grade of 63.78 grammes gold per tonne including a
0.65 metre section containing 157.38 grammes gold per tonne.

In addition to the encouraging drill results the Company is pleased to announce
that it has entered an agreement with Senior Engenharia, a privately held Belo
Horizonte engineering company, for the Cata Preta joint venture to acquire its
100 percent interest in five exploration licences, three of which remain in the
form of approved applications, totaling 1,580 hectares located near Mariana 20
kilometres southeast of the Cata Preta project.

Since resumption of the drilling programme, five additional holes have been
completed on the "Carvoeira" deposit at Cata Preta. The recent holes confirm
the previously reported extension but also demonstrate the variable gold grade
and thickness of the shallow plunging, strap-like deposit. The following
results are weighted averages, using a one gramme per tonne cutoff, of the
mineralized intervals in Hidefield drill holes completed to date on the "
Carvoeira" deposit.