Canabrava Diamond Corporation Production Set to Commence
on the Rio do Sono Diamond Joint Venture, Brazil
VANCOUVER, BRITISH COLUMBIA--Canabrava Diamond Corporation
(CNB-V)
and Paramount Ventures and Finance Inc. (PVF-V) are pleased to
provide the following update on the Rio do Sono Project in Brazil.
The Joint Venture is developing alluvial diamond resources on the
Rio do Sono River in the State of Minas Gerais, Brazil.
Significant progress has been made over the past three months, and
the Project is now close to achieving its first diamond
production. Paramount has fulfilled its obligation to spend the
first US$1 million of expenditures, and has vested a 50 percent
interest in the Joint Venture. Operations are now being funded on
a 50:50 basis.
Equipment procurement has been completed and a fleet of new heavy
equipment, including three backhoe excavators, two bulldozers, a
grader and a large capacity fuel tanker, has been mobilized to
site. In addition, two tractor units equipped with six inch pumps
and customized compressors to facilitate diver-operated underwater
mining in the active river channel have been commissioned. A
small diamond recovery plant, which will be used to process
gravels from the tractor units, has been installed on-site and is
currently undergoing commissioning tests. Construction of a
high-capacity floating dredge with an associated diamond recovery
plant is 95 percent complete. The tract of land covering the
first mining site has been purchased, and the required
infrastructure established. This includes a six kilometre access
road, a 1,000m airstrip, perimeter fencing, a fresh water supply
and accommodation facilities.
An initial period of trial mining has commenced under a
provisional mining license using the diver-operated tractor units.
The application for a full mining license is now well advanced,
and a public hearing associated with the environmental review
process has been scheduled. Upon the issuance of an unencumbered
mining license, the dredge unit and second diamond recovery plant
will be commissioned and the operation will be ramped up to full
production capacity.
Canabrava Diamond Corporation is actively exploring for diamonds
in Brazil and Canada and looking at other opportunities worldwide.
The Company is 54.7 percent owned by Southwestern Gold
Corporation (SWG-T). Paramount Ventures and Finance Inc. is a well
financed junior exploration company with copper and gold projects
located in Peru and diamond projects located in Brazil and Canada. |
