TORONTO, Dec. 21 /CNW/ - BRC Diamond Corporation (the "Company" or "BRC") (TSXV: "BRC") is pleased to provide an update on its diamond exploration activities in the Democratic Republic of the Congo (the "DRC"). Exploration is currently ongoing at the Company's Kwango River project in Bandundu province and Lubao project in Kasai-Orientale Province.
Kwango River Project
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The Company began exploration with respect to the Kwango River project in July 2005. Over the past six months, ground geophysical surveys were conducted on selected sites with the objective of selecting the most suitable techniques for identifying possible deposits of diamondiferous gravels. A study of soil conditions in existing artisanal workings, and in test pits excavated by the survey contractor, provided correlation between the geophysical data and the Quartenary geology. This work was supplemented with a study using data from available satellite imagery which successfully highlighted anomalous areas which may be indicative of potential diamond traps.
The results of the surveys determined that a helicopter-borne VTEM technique would be most cost effective in identifying paleochannels or old river courses which occur under the present land surface. The Company is of the opinion that, if such paleochannels are identified, it will be able to map gravel horizons and greatly increase the possibility of identifying alluvial diamond deposits. Such deposits would constitute prime targets for drilling.
An on-board magnetometer will be used to simultaneously collect magnetic data to help in identifying prospective diamond traps and to investigate the nearby terrain for the possible presence of kimberlite pipes. The VTEM helicopter survey is expected to start in the first quarter of 2006.
The Company has rationalized its option position on the Kwango River and will concentrate on 8 Prospecting Research Permits ("PRs") covering an area of 2,150 square kilometres between Tembo and Kasonga Lunda, a distance of approximately 185 kilometers.
Lubao Project
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Exploration at the Lubao project, which began in May 2005, has consisted primarily of stream sediment sampling designed to target concentrations of Kimberlite indicator minerals. Six reconnaissance samples previously collected were sent to Overburden Drill Management's laboratory (which is independent of the Company) in Nepean, Ontario for mineral grain identification. Although anomalously high concentrations of ilmenites and Cr-free pyropes were found, Overburden Drill Management scientists concluded that the grains were likely from non-kimberlitic sources. As these samples were obtained from artisanal diggings clustered in the northern portion of the property, the Company does not believe these results to be indicative of the overall Kimberlite potential of the Lubao project.
The Company has subsequently collected 466 stream samples over the entire Lubao property. These samples will be concentrated with an Armstrong jig and transported to a laboratory in South Africa for kimberlitic mineral identification at the end of the 2005 field season.
The Company is encouraged by the occurrence of good, quality diamonds being extracted by artisanal diggers on a secondary tributary of the Lomami River, located on the Company's Lubao property. Fabrice Matheys, exploration manager for BRC's project, states that field investigation of these diamonds indicates that the Lubao diamonds are of a superior quality to diamonds in the prominent diamond-producing Mbuji-Mayi area, and consist of a large proportion of gem quality stones.
The next stage of the Lubao program, primarily a ground follow-up program to examine magnetic and heavy mineral anomalies, is scheduled to begin in 2006. The airborne magnetic survey announced earlier has been delayed until spring 2006 due to contractor problems.
The Lubao region is located in one of the largest, historical diamond producing regions of the DRC. The Company's property consists of 14 PRs covering an area of approximately 5,025 square kilometers.
L. Joseph Bardswich (P. Eng.), the Company's President and Chief Executive Officer, is the "qualified person" (as such term is defined in National Instrument 43-101) responsible for the preparation of the technical information in this release.
BRC is a Canadian-based diamond exploration company active principally in the DRC. Led by a management team with extensive experience in the DRC, the Company is active in some of the most prospective diamond regions of the country. Banro Corporation, the Company's largest shareholder with a 35.8% interest in BRC, is a mineral exploration company focused on the DRC.
This press release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding future plans and objectives of the Company. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Factors that could cause such differences include political developments in the DRC, changes to regulations affecting the Company's activities, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties involved in interpreting exploration results and the other risks involved in the mineral 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. 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.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this press release.
For further information: please contact Arnold T. Kondrat, Executive Vice President, or Martin Jones, Vice President, Corporate Development, at (416) 366-2221
