Thursday, January 11 2007 7:00 AM, EST
Geologist Reports Evidence of Additional Gravel Layers That Could Greatly Increase Sao Luis Mining's Brazilian Diamond Reserves
Market Wire "US Press Releases "
LAS VEGAS, NV -- (MARKET WIRE) -- 01/11/07 -- Sao Luis Mining, Inc., (PINKSHEETS: SAOL) a "conflict free" diamond mining and precious metals exploration company, announced that Dr. Gerard G. M. Verraes, renowned geologist and member of its advisory board, reports evidence of additional gravel layers that could strongly increase the reserves on its Brazilian Joint Venture Property 231.
Dr. Verraes conclusions were based on his recent site visit to the Company's Sao Luis River Basin Diamond Project, in the state of Mato Grosso, considered Brazil's most productive diamond producing region. His observations point to the existence of a Kimberlite, most probably fertile, in the northern portion of Property 231. A secondary gravel layer appears to lie at an approximate depth of 15 meters. He has recommended that the Company perform a drill program to delineate the gravel layer and determine the grade. If economically viable, this could significantly increase diamond reserves on the concession.Sao Luis Mining is currently performing experimental mining on its adjacent Joint Venture Property 117. It has already produced 673 carats of diamonds, including gem quality diamonds exceeding 2 carats
. Fifty percent of the diamonds recovered from this sampling averaged over half a carat per stone, and the grade has reached 0.648 carats per cubic meter in one test area. This is considered a very high concentration of coarse diamonds. It is also expected that as work progresses towards the "stone line" the grade will continue to increase.
Based on the mounting positive results the Company will install a second field processing plant in late January to assist in the evaluation of the property and help determine where to begin production mining. In late March a pilot processing plant with a 40 ton per hour capacity will be delivered to start production mining. This new processing plant has the capacity to produce over 5,000 carats per month. Once it has proved to be efficient at least one additional processing plant with 100 ton per hour capacity will be ordered which could increase the production capacity to 15,000 carats per month.
A geological report submitted to Brazil's Department of National Mineral Production (DNPM) in 2005 defined a surface resource of 12,695,000 carats with an average grade of 1.645 carats per cubic meter. At present market prices this resource could be conservatively valued at approximately $300,000,000. However, the 2005 geological report does not take into account the material contained in three primary sources located at lower depths that may exponentially increase Sao Luis Mining's known resources.
Dr. Verraes was the head of the Mines Department, Ales School of Mines in France, as well as professor of geology, metalogeny, mineral economy, and sedimentology. He was the creator and head of the post-graduate program for International Safety and Environment for Mines and Heavy Industries. In industry he has served as exploration, mining and metallurgy supervisor for Penarroya's mining group and prior to this was its senior geologist. He has also been resident geologist for Les Malines' Mine. Today he serves as a professor at various universities as well as a consultant to several companies.
Among his honors and appointments, Dr. Verraes has received the Medal of Chevalier des Palmes Accademiques; Gold medal of the French Mines' Order; and Honour Professor of Baia Mare Mining University. The European Community appointed him to the Advisory Board of Abiotic Research Centre, Varsawa, and the Advisory Board of the Soil Depolution Centre. He serves as a member of the Sciences and Art Ardeche Academy. Dr. Verraes received his Ph.D. in Geology from Montpellier University as well as his post-doctorate with State Doctor Grade. Graduate Students under his direction have received 7 Ph.D.s, 8 Research Master's Degrees and 120 Master's Degrees.
About Sao Luis Mining:
Sao Luis Mining, Inc., is a "conflict free" diamond mining and precious metals exploration company. Its strategy is to acquire interests in producing mines and develop properties that have the promise to be economically viable. Sao Luis Mining has a 51% joint venture interest in Comercio e Mineracao Sao Luis Ltda., which operates two diamond properties and an existing processing plant in the Sao Luis River Basin. The operation is located in the state of Mato Grosso, which is the most productive diamond district in Brazil. Additional information, including a photo gallery and geological report, is available at the Company's website www.saolmining.com