BRC DIAMONDCORE LTD.

TORONTO, May 4 /CNW/ - BRC DiamondCore Ltd. (the "Company") (TSX - BCD; JSE - BCD) announces that it proposes to carry out a non-brokered private placement of up to 7,500,000 units of the Company at a price of Cdn$0.08 per unit for proceeds to the Company of up to Cdn$600,000. Each such unit is to be comprised of one common share of the Company and one warrant of the Company, with each such warrant entitling the holder to purchase one common share of the Company at a price of Cdn$0.11 for a period of three years. Closing of this financing (the "Financing") is subject to receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. The Company intends to use the proceeds from the Financing for general corporate purposes. BRC DiamondCore Ltd. is an African-focused diamond explorer with projects in the Democratic Republic of the Congo (the "DRC"). Led by a management team with extensive experience in diamond exploration and mine development, 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. MFG Chali

 

Bald Übernahme durch Rio Tinto ? Absolutes Schnäppchen dieser Explorer !

 

BRC DiamondCore JV drills up to 68.2% Fe in Congo

2011-05-03 15:12 ET - News Release

 

 

Mr. Arnold Kondrat reports

BRC DIAMONDCORE REPORTS IRON ORE EXPLORATION RESULTS

BRC DiamondCore Ltd.'s joint venture with Rio Tinto Minerals Development Limited ("Rio Tinto") has discovered high grade haematite (a form of iron ore) in its exploration areas within Province Orientale, Democratic Republic of the Congo (the "DRC"). The drilling results for 1,032 metres of diamond drill holes, which are detailed below, revealed grades of 65.6% to 68.2% iron.

The Company owns 25% of the joint venture company that holds exploration permits which cover areas totalling approximately 4,550 square kilometres. Under the agreement with Rio Tinto, all iron ore exploration up to and including the completion of any feasibility study will be funded by Rio Tinto. The Company will not suffer any dilution during this period, such that the Company's 25% interest in the properties will be maintained during this period.

The exploration for iron ore is being carried out by Rio Tinto (or one of its affiliates) as operator. After the completion of any feasibility study, funding for the project is to be provided by Rio Tinto and BRC pro rata based on their respective interests in the joint venture company.

Initial geological research and exploration had indicated that the exploration permit areas, which hitherto had been largely unexplored using modern exploration methods, were highly prospective for the discovery of iron ore deposits. This assessment is supported by these initial results. First pass drilling has been completed on the Zatua 1 and 2 target areas with nine diamond drill holes totaling 1,032 metres. Six of these holes intercepted high grade haematite mineralization.

The target areas had been selected after a regional airborne magnetic survey had identified geophysical anomalies which subsequent ground follow up indicated to be associated with outcropping haematite mineralization. Mineralized intervals, where intercepted by a drill hole, range in thickness from 32 metres to 121 metres with both friable and massive textures being observed.

Analytical results have been received for the first six holes with values of 65.6%-68.2% Fe, 0.53%-2.99% Al2O3, 0.39%-2.4% SiO2 and 0.049%-0.969% P, with the elevated high phosphorous values appearing to be associated with recent weathering. Despite limited thicknesses in some of the holes, the results give encouragement that high grade haematite is present in the area.

Rio Tinto, as the operator, now intends to complete the helicopter supported reconnaissance over the remainder of the Bomokandi permit area beginning during May 2011.

Commenting on these results, Dr. Mike de Wit, President of BRC, said: "The results are encouraging and indicate that a significant iron ore project could potentially be developed in the area. The exploration programme by Rio Tinto, as operator, is continuing. We are very pleased to have Rio Tinto as our partner in the DRC for both our diamond and iron ore properties."

Qualified Person

Dr. Mike de Wit, President of the Company and a "qualified person" (as such term is defined in National Instrument 43-101), has reviewed the technical information in this press release.

We seek Safe Harbor.