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Local lore speaks of the recovery of a "large" diamond in a small stream, which flows through the village of Capiibarry located on the eastern edge of the Property. Capiibarry is located on the Paraguay-Brazil highway approximately 150 kilometres east-northeast of capital city Asuncion.
The Itapoty property comprising Company owned and optioned exploration concessions covering
5,000 hectares.
The Company has completed stream sediment sampling and recovered over 50 maco-diamonds greater than 1.mm. Additionally, the Company has completed a detailed ground magnetometer survey over the project area. The results of these surveys indicate the diamond bearing streams are located in closed drainage basins and the magnetometer survey has identified multiple point anomalies with magnetic signatures similar to some of the kimberlites discovered in the Canada's diamond rich "Corridor of Hope", reports John Kieley, independent consulting geophysicists and Qualified Person.
Management believes the Itapoty Project is evolving into a potentially significant discovery.
Paraguay is centrally located in South America with a population of 7 million. The capital, Asuncion, is located on the Paraguay River, an international water highway providing barge access to the South Atlantic. Paraguay has a stable democratic government with representation similar to that of the United States. The economy is primarily agriculturally based; however, in recent years the government has invested heavily in the development of hydroelectric power generation and is currently the largest exporter of power in South America. Paraguay has a good network of roads and highways connecting Asuncion to the rest of South America.
The mining industry in Paraguay is in its infancy, launching its inaugural Mining Act in 2007. The act assures exploration and mining rights with no mining royalty which is underpinned by a 10% Corporate Tax Rate.
The Itapoty Property is located in eastern Paraguay approximately 150 kilometres east-northeast of Asuncion along the Paraguay-Brazil highway, which passes through the village of Capiibary located on the eastern edge of the Property. Access on the Property is along secondary gravel and dirt roads. Capiibary has a modest labour pool of mechanics, fabricators and electricians.
The majority of the Property is 100% owned by the Company; however, 5,000 hectares are held under the terms of an option agreement; whereby, the Company as the right to acquire 100% interest in the concession for US $ 1.465 million over 4 years; the vendor has a 3% net proceeds royalty. The Company has the right to purchase 2% of the royalty for US$ 3.0 million.
In Q-2, 2008, the Company commenced assembling its initial land position in the region. Since that time the Company has collected 280 stream sediment samples; of which, 29 samples contained 56 mico-diamonds. Additionally, historical records indicate that 11 mico-diamond were recovered by various earlier prospectors. Numerous chrome spinel grains, three G-9 garnets and one G-10 garnets have been confirmed by micro-probe as falling within the diamond stability field.
All of the diamonds and the majority of the diamond indicator minerals were recovered from the small streams defining five closed contiguous drainage basins in the central part of the project area. All the diamonds were recovered within several kilometres of the head waters of the small streams.
The Company is continuing its ground magnetometer survey over the central portion of the property and to-date has covered approximately 630 line kilometres. The data is being interpreted by Mr. John Kieley, P.Geo the Company's independent consulting geophysicist.
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