MercoPress. South Atlantic News Agency

Promising discovery of diamonds in north-east Paraguay

Ten diamonds ranging in size from 0.002 to 0.04 carats have been discovered in the north east of landlocked Paraguay, reported Latin American Minerals Inc., a mineral exploration company focused on the acquisition and development of properties of highly prospective countries of the region.

The discovery took place at the Capiibary Diamond Exploration Property, which covers an area of approximately 165,000 hectares and located some 100 km north of Latin American's Paso Yobai Gold Project. The recent diamonds were recovered during reconnaissance sampling of two small streams, within 3 km of the headwaters defining the small drainage basin covering approximately 25 square km. Majority area of the property which is some 160,000 hectares is fully owned by Latin American Minerals, However, on the remaining area, the company has an option to acquire a 70% interest by making escalating cash payments totaling $1.5 million over 4 years and, subject to standard dilution provisions. Dr. Waldo Perez, Senior VP Exploration, said, this discovery demonstrates Latin American's commitment to regional exploration and the company's ability to find new exploration locations in remote parts of South America. David Wahl, President and CEO, said, stream sampling is continuing and a ground magnetometer survey will commence shortly to cover the 18 square kilometer area defining the south-western limits of the Capiibary drainage basin, which may be the source area for the diamonds.