BRC DIAMONDCORE RESUMES DIAMOND EXPLORATION IN NORTHERN DRC AND ENTERS INTO NEW JOINT VENTURE WITH RIO TINTO

TSX: BCD
JSE: BCD

TORONTO, Feb. 2 /CNW/ - BRC DiamondCore Ltd. ("BRC" or the "Company") (TSX - BCD; JSE - BCD) is pleased to announce that it plans to resume exploration for diamonds over properties (the "DRC North Project") in Province Orientale in northeastern Democratic Republic of the Congo (the "DRC"). This is as a result of a recent analysis of samples previously collected during the earlier reconnaissance phase of the exploration program, but not analysed at the time due to budget constraints. The analysis revealed the presence of micro diamonds and other indicators which typically indicate the presence of primary sources of kimberlite diamonds proximal to the area. The results are described in more detail below.

The Company is also pleased to announce that it has entered into a new joint venture arrangement with Rio Tinto Mining and Exploration Limited ("Rio Rinto"), pursuant to which Rio Tinto will fund the proposed new exploration program over the DRC North Project up to and including a pre-feasibility study (assuming on-going satisfactory results).  At that stage, BRC would have a 30% interest in the DRC North Project. Thereafter, funding would be in proportion to equity.

The reconnaissance stream sampling program over the DRC North Project was carried out by BRC in part under the terms of an option agreement with the holder of the exploration permits, but work in the area was suspended due to a force majeur which was lifted on January 20, 2011. Now that the force majeur has been lifted, BRC has mobilized a geological exploration team to commence a follow-up program of more detailed sampling over the highly anomalous areas. This phase is planned to be completed by May 2011.

The said option agreement related to 44 exploration permits (the "Option Permits") covering ground in Province Orientale in northeastern DRC some 200 km ENE of Kisangani. The Option Permits are central around Bafwasende and cover 7,313 km². The area is underlain by Archaean basement, which in the south is covered by Proterozoic platform sediments. A large number of alluvial diamond diggings are concentrated on the ground covered by the Option Permits, but the primary kimberlites sources for the diamonds have never been found. BRC also holds two additional exploration permits in its own name directly north of the said 44 permits, and are 750 km² in extent.

During the reconnaissance stream sampling program, 285 stream samples were collected (266 over the Option Permits ground and 19 over the BRC permits ground) on an approximate 1-sample-per-25 km² grid. Each sample measured 30 litres of screened material (-0.7 to +0.4mm fraction). The samples were hand gravitated in the field and further concentrated by a mechanical jig in Kinshasa, DRC after which the sample concentrates were sorted at Rio Tinto's Heavy Mineral Sorting Laboratory in Perth, Australia. Chemical analyses were subsequently carried out on visually positive grains by X-ray microprobe methods using energy dispersive spectroscopy for the major element oxides and laser ablation methods where trace element data were obtained.

The results have highlighted an area of interest over the central part of the Option Permits ground and on the northern and south-western parts of the BRC permits ground. A number of samples from the central Option Permits ground have returned ilmenites, chromites (including several diamond-inclusion types), an eclogitic garnet and micro-diamonds (15 in total). There is a high proportion of yellow to yellow-brown diamonds with nitrogen chemistries indicating multiple sources. The restricted colour range of the diamonds perhaps suggests similar, and proximal rather than distal source(s). Some of the samples from the BRC permits ground also contained mantle minerals (relatively un-abraded ilmenite and chromite) which indicate that primary sources for diamonds are possibly proximal to the area.

Commenting on this, Dr. Mike de Wit, the Company's President, said, "BRC has been through some difficult times in the last two years, primarily a function of the diamond market, but these are very promising new developments and indicate that the primary sources for the diamonds, which have a widespread occurrence over this large part of central Africa, are likely present in the region. The local small-scale miners, however, have focussed primarily on recovery of alluvial diamonds rather than looking for kimberlites. The JV with Rio Tinto means that the proposed exploration program will be funded. BRC is thus fulfilling its core competence of diamond exploration in the DRC. In addition, the Company's joint venture of more than a year with Rio Tinto on iron ore exploration continues to progress." 

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. 

BRC DiamondCore Ltd. is an African-focused diamond explorer with projects in 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. 

This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to exploration results, potential mineralization and plans and objectives with respect to diamond exploration) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company.  Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, the possibility that future exploration results will not be consistent with expectations, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, changes in diamond markets, foreign currency fluctuations, political developments in the DRC, changes to regulations affecting exploration or development activities, delays in obtaining or failure to obtain required project approvals, the uncertainties involved in interpreting geological data and the other risks involved in the diamond exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

SOURCE BRC DiamondCore Ltd.

For further information:

Please visit our website, www.brc-diamondcore.com, or contact:
In Toronto:Martin D. Jones, Vice President, Corporate Development, (416) 366-2221 or 1-800-714-7938.
In Johannesburg:Brian P. Scallan, Vice President, Finance, +27 82 902 6273 

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BRC DiamondCore Ltd.

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