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Prima Diamond Corp. Acquires Munn Lake Diamond Property and Announces $1 Million Non-Brokered Private Placement

Press Release –

August 5, 2014 – Vancouver, BC: Prima Diamond Corp. (TSX.V:PMD) (“Prima” or the “Company”) announces that it has entered into a property option agreement (the “Agreement”) dated July 25, 2014 to acquire the Munn Lake Diamond Property located in the Slave Province, Northwest Territories from DG Resource Management Ltd. (“DG Resource”) and Zimtu Capital Corp. (“Zimtu”) whereby Prima can acquire an undivided 100% interest in and to 19 mineral claims covering more than 14,000 ha (34,000 acres).

The Munn Lake Diamond Property is located approximately 35 km east of the Snap Lake Diamond Mine and 40 km northwest of the Gahcho Kué Project scheduled to commence diamond production in 2016.

Historic Exploration Highlights

    • From 1996 and 2007, SouthernEra Resources Ltd. spent at least $5.7 million* as the operator of the diamond exploration program at Munn Lake
    • Diamondiferous “Yuryi” Boulder Field**
      • 226 diamonds, including 62 macro-diamonds returned from 581 Kg sample
      • Boulders up to 25 m in diameter
    • Diamondiferous Munn Lake Kimberlite***
      • 14 diamonds including 2 macro-diamonds and 12 micro-diamonds returned from 42 kg sample
      • Drill-indicated total length of 1.3 km
      • True thickness between 12 m – 0.25 m
  • Four additional Kimberlite Indicator Mineral (KIM) trains on the property, sources yet to be identified

Historic Exploration Details [Link to Property Map]

The “Yuryi” boulder field, “hosts spectacular pyrope garnet chemistry with over 40% of the pyropes occurring within the G-10 field, suggesting that the diamond potential of the primary kimberlite source is excellent. The ‘Yuryi’ kimberlite returned 226 diamonds, including 62 macrodiamonds from 581 kilograms of processed kimberlite. One 0.12 carat diamond was also recovered from the sample”** (A macrodiamond has 1 dimension greater than 0.5mm.)

The drill-tested Munn Lake Kimberlite varies in true thickness from 12m to 0.25m. A 42 kg sample, from two diamond drill core holes and one sonic drill hole, returned excellent microdiamond counts with a majority of the diamonds of very good white color and quality. 14 diamonds were noted, including 2 macrodiamonds and 12 microdiamonds***.

In addition to the indicator train that might be attributed to the diamondiferous Munn Lake Kimberlite at least four additional indicator trains with very robust kimberlitic mineral chemistry have been identified on the property. The sources for these indicator trains have yet to be been identified. ****

The “North Margaret Lake Indicator Train” is approximately 300m wide by 7km in length and results suggest the definition of an up-ice cut-off point to the indicator train. Individual samples returned up to 159 indicators.****

*Kalahari Resources Inc. AIF, 10/16/2002, page 10
** SouthernEra news release, February 18th, 1999
*** SouthernEra news release, June 8th, 1999.
**** SouthernEra news release, October 5th, 2000

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