DIAMOND EXPLORATION NEWS Kimberlites Found in Paraguay

APA RIVER, Paraguay Geologists have discovered high quality kimberlite, a mineral often associated with diamonds, on the banks of the Apa river on the northern border between Paraguay and Brazil, said Paraguay's deputy mining and energy minister Hector Ruiz. He said geologists informed the government that one of the deposits was discovered in Concepcion department and the other in Alto Paraguay.

"The traces are very strong. Now we will progress to the second stage of furthering our studies," pointed out Ruiz. These studies will include verifying the quality and mineral properties of the kimberlites.

The geologists informed the government that there are other areas of similar potential in an area close to the border with Brazil and the Paso Bravo national park in Paraguay. This area is in Acahay valley and Paso Yobai in Guiara department in central Paraguay. The mining potential of this area was first discovered by Toronto-based REX DIAMOND MINING.

Rex has been exploring an area of 34,000 km in eastern Paraguay for the last two years and in October it received the necessary approval to allow it to obtain exploration concessions for kimberlite.