Tres-Or purchased all the shares of Vaaldiam do Brasil Mineração Ltda. (“VBM”) which holds mineral licenses in Mineras Gerais and Mato Grosso States, in Brazil. The acquisition of VBM gives Tres-Or access to a specialized team with more than 20 years’ experience in the exploration, evaluation, and development of diamond targets from primary sources in Brazil, Canada, and Africa.
Tres-Or’s exploration permits cover known diamondiferous kimberlites, including the Guara and X-270 kimberlites in Minas Gerais and the Traira and Juina kimberlite bodies in Mato Grosso. The Vendor was granted 2 one percent gross sales royalties on each of the properties, which royalties may be repurchased by Tres-Or for CDN$1,500,000 per property.
Diamond exploration in Mato Grosso is historic, beginning in 1908 prior to the diamond discoveries in Minas Gerais. Alluvial mining continues in the state and for more than 10 years Mato Grosso was the largest producer and exporter of diamond gems until the discovery of the Brauna Diamond Mine in Bahia State in 2016. Fieldwork on Tres-Or’s Mato Grosso diamond projects was initiated to evaluate high diamond potential on licenses in the Juina diamond district.
Tres-Or operates through its wholly owned Brazilian subsidiary Vaaldiam do Brasil Mineração Ltda. (“VBM”). Tres-Or’s team completed site visits and initial fieldwork studies on the Company’s kimberlite diamond occurrences in the Coromandel diamond district of Minas Gerais State in August 2023. During this time, the Company entered into an exclusive development agreement providing Tres-Or with the exclusive right to develop kimberlite diamond deposits on the Vendome Properties.
The purpose of the technical team’s visit was to prioritize certain of the more than 30 kimberlites associated with the VBM and Vendome properties on Tres-Or’s mineral claims in Minas Gerais.
Diamonds have been produced from the river gravels in the Coromandel district for over 200 years, and small-scale production continues to this day. The largest gem diamond ever found in Brazil, the "Presidente Vargas," weighing 726.6 carats, was discovered in 1938 within the Coromandel district.
Other very large gem diamonds recovered within the Coromandel district include 602 cts, 460 cts, 400.7cts, 400.5 cts, and 377.5 cts, all among the largest gem diamonds ever produced in Brazil.
All the diamonds produced thus far in the Coromandel district have been produced from alluvial gravel deposits found along the rivers and drainages. These diamonds were likely eroded from kimberlite, the primary source rock of diamonds. Numerous kimberlites have been discovered in the district, but few if any have been properly sampled to evaluate their diamond content and diamond value, to determine their economic potential. The fact that large valuable diamonds continue to be recovered from gravel deposits that lie adjacent to some of the 30+ kimberlites that are situated on Vendome’s Properties, suggests that there is potential for an economic primary diamond source kimberlite deposit. The evaluation of these kimberlites will be the principal focus of Tres-Or’s exploration work.
The Vendome Properties are comprised of 7 blocks of mineral licenses, covering an area of roughly 29,175 hectares. Tres-Or plans to initially focus its exploration on 5 of the blocks where the 27 kimberlites are situated and where there has been a long history of diamond recoveries from the alluvial gravels found along the rivers that crosscut the district. Tres-Or’s geologists have prioritized these 5 claim blocks based on the prevalence of diamond recoveries from the alluvial gravels and the proximity of these recoveries to the known kimberlite pipes.
The technical team’s site visit was to prioritize certain of the more than 30 kimberlites associated with the VBM and Vendome properties on Tres-Or’s mineral claims in Minas Gerais.
Vendome’s alluvial diamond operations, which are situated within the Vendome - P1 block have produced some high value diamonds including the 2016 recovery of a large white diamond which weighed 25 carats. Vendome reported that it sold this diamond for US$600,000, pointing to a high sales value of US$24,000 per carat for this stone. The district also has a history of producing fancy-colored diamonds. Vendome reported that it recovered an 8.88 carat pink diamond in 2020 which was reportedly sold for US$2.5 million (US$284,000 per carat). This sales price is extremely high, considering that the average sales price for diamonds produced in Brazil in 2022 was US$192 per carat3.
To date, nobody has found the source rock of the diamonds that have been produced in the Coromandel district. Kimberlite occurrences that have been discovered in the district are likely the source of these diamonds. Tres-Or’s Coromandel property rights encompass more than 30 kimberlite pipes and high value diamonds have been produced from alluvial gravel deposits on the property. Tres-Or plans exploration of kimberlites which lie in close proximity to alluvial gravels where Vendome has recovered some high value diamonds.