NEWS!!!Tuesday, February 13 2007 4:35 PM, EST Sao Luis Mining Brazilian Diamond Property 231 Geological Surface Report Estimates 12.7 Million Carats of Diamonds With Approximate Value in Excess of $300 Million Market Wire "US Press Releases "
LAS VEGAS, NV -- (MARKET WIRE) -- 02/13/07 -- Sao Luis Mining, Inc. (PINKSHEETS: SAOL), a diamond mining and precious metals exploration company, reports that the 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 on its joint venture Property 231. At present market prices this resource could be conservatively valued at approximately $300,000,000 .
The geological report did not take into account the additional resources contained below the surface in three primary sources located at lower depths or even the secondary alluvial gravels deposited below the surface. This data, taken together with the recent results from the initial bulk sampling program now underway on the Company's adjacent joint venture Property 117, should significantly increase the total diamond resources on the two properties with a comparable increase in the estimated value of the property.
The first three bulk samplings of the alluvial gravels on Property 117 has already produced 673 carats of diamonds, including three 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 reached 0.648 carats per cubic meter in one test area. This is considered a very high concentration of coarse diamonds. The overall grade is expected to increase as the work approaches the "stone line."
The Company will continue its ongoing evaluation of Property 117. This includes the ongoing drilling program to delineate the diamond bearing gravels, the analysis of the latest satellite reports, and continued bulk sampling. In addition, it ordered a second field processing plant that was scheduled for installation in early February. However, due to heavy seasonal rains, it should be installed in late February or early March.
In April, a pilot processing plant manufactured by Extrac-TEC with a 40 ton per hour capacity will be delivered to start production mining. This processing plant has the capacity to produce over 5,000 carats per month. Once it has proven 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.
About Sao Luis Mining:
Sao Luis Mining, Inc. is a 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 and responsible for 61% of all the legally mined diamonds in Brazil in 2005. Additional information, including a photo gallery and geological report, is available at the Company's website www.saolmining.com.
This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this release, words such as "estimate," "expect," "anticipate," "projected," "planned," forecasted" and similar expressions are intended to identify forward-looking statements, which are, by their very nature, not guarantees of Sao Luis Mining, Inc.'s future operational or financial performance, and are subject to risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Due to the risks and uncertainties, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.