Resource World Magazine

J U N E / J U L Y 2 0 1 7 www.resourceworld.com 47 FIVE STAR DIAMONDS LTD. [STAR- TSXV], formerly Turquoise Capital Corp., recently completed a name change and its qualifying transaction. Turquoise Capital was a Capital Pool Company that acquired all the issued and outstanding shares of Five Star Diamond Ltd. (BVI) by way of a three-cornered merger and issued 101,287,345 common shares to the security holders of Five Star, not including those issued pursuant to a financing. A non-brokered private placement has been completed representing 17,815,480 shares at $0.30 per share for gross pro- ceeds of $5,344,644, less finder's fees and other costs. Bolstered by management's successful track record working in Brazil, the company can now proceed with its plans to acquire and develop advanced- stage, hard-rock, diamond projects in Brazil. Five Star's objective is to be one of the first producers of diamonds from kimber- lite deposits in Brazil rather than mining alluvial diamonds. The company is work- ing with local, state and federal Brazilian authorities to foster an open, transparent and legal diamond industry. The 100%-owned, advanced-stage, flag- ship, Catalao diamond project is located in the famous Coromandel diamond dis- trict of Goiás State which comprises one exploration licence covering 1,999.42 hect- ares. The project has NI 43-101 compliant indicated and inferred resources of 8,277,000 tonnes grading 26.5 carats/ hundred tonnes in the CAT01A, CAT01B and CAT01C kimberlite pipes. Five Star has also submitted applications for three exploration licences over approximately 5,998.37 hectares. A pilot plant was built and commis- sioned at Catalao and an initial mining and pilot processing program has been com- pleted with material derived from three diamond-bearing kimberlite pipes. The pilot plant is now being demobilized for relocation to the 100%-owned Jaibaras Project in northern Brazil. Joe Burke, General Manager of Marketing, told Resource World, "This has highlighted the potential for a commer- cial operation within the oxide zones of the CAT01A, CAT01B and CAT01C kim- berlite pipes. The ADP Group has been appointed to complete design work and construction of the oxide commercializa- tion project. This plant is in the final design and pre- construction phase and will utilize a Dense Media Separator (DMS) to recover con- centrates which will then be processed at the company's existing diamond recovery plant." Five Star is also conducting a feasibil- ity study to evaluate the fresh rock zone with completion scheduled for the end of Q2 2017. In addition to owning one of the only kimberlite processing plants in Brazil, the company now controls a dominant posi- tion in the Brazilian diamond sector. Along with the Catalao Project, Five Star has 22 other projects comprising 72 exploration licences and applications covering 123,667 hectares. All projects are 100% owned. A total of 15 diamond-bearing kimberlite pipes have already been identified and sampled and a further 87 kimberlite pipes are to be tested across the other projects. Burke added, "The Catalao Project has historically produced some very large, high quality diamonds including two that were over 100 carats. Our pilot operations on the Catalao 1A, 1H and 1C pipes have consistently produced stones up to one carat in size. The diamonds have been high qual- ity with approximately 85% being gem quality and zero fluorescence. This is a tremendous result for this type of pilot operation and is what gave the company the confidence to proceed to commercial production." Five Star recently transported a small parcel of diamonds to Antwerp for cleaning and assessment. This parcel of diamonds, mined in the pilot program at Catalao, has been classed as uniquely pure quality with pure to VS (clarity) in almost 85% of the diamonds viewed. In addition, fluorescence was 99% absent. "These are unique and highly desirable characteristics in diamonds and very few known mining concessions are able to pro- duce such top end colours almost entirely," said Burke. The company anticipates commer- cialization of diamond production at approximately 90,000 carats per year. n Five Star Diamonds fast out of the gate in Brazil by Ellsworth Dickson MINING

• Cover