Partners bullish on Barra Grande potential

A second phase of drilling by Trans Hex International (THI-T) suggests that the Barra Grande property in eastern Brazil may host millions of cubic metres of diamond-bearing gravels.

Barra Grande comprises 57,948 ha along the banks of the Rio Grande River, which separates Minas Gerais and Sao Paulo states. Trans Hex can earn a half-interest from property-owner Verena Minerals (VMCO-C) by spending US$2 million on exploration.

To date, Trans Hex has sunk 240 reverse-circulation holes, mostly in three areas that are believed to host more than 100 million cubic metres of gravels.

Currently, Trans Hex is drilling areas considered suitable for bulk-sampling; the samples will enable Trans Hex to estimate diamond grades and values.

Meanwhile, Verena has discovered diamonds on the adjacent Marimbondo property. Ten areas where gravels outcrop at surface are now being test-sampled.

Rio Tinto (RTP-N) is funding the Marimbondo work in exchange for the right to 20% of future production from alluvial sources and 80% from primary sources. Upwards of US$6 million must be spent on exploration in order for the right to take effect; thereafter funding will be covered on an equal basis.

Verena is managing the alluvial phase of exploration while Rio Tinto hunts for kimberlites.