DIAMONDS — Panel asks for statement

Following a review of the mining plan, a public hearing in Brazil concluded that the Rio do Sono alluvial diamond project in Minas Gerais, Brazil, requires a full environmental impact statement.

Partners Canabrava Diamond (CNB-V) and Paramount Ventures & Finance (PVF-V) expect to complete the study in the next three months.

Plans call for heavy equipment to extract diamondiferous gravel from the Rio do Sono channel. Terraces are known to host 60 million tonnes of gravel averaging 0.15 carat per tonne.

Paramount is earning a half-interest in the project by spending US$1 million.

In the meantime, Canabrava and SouthernEra Resources (SUF-T) are exploring the nearby Canabrava project, which consists of 480,000 ha in more than 20 claim blocks northwest of Belo Horizonte.

Canabrava is also exploring for diamonds with Kennecott near Wawa, Ont.