Canada's Vaaldiam Mining plans to spend $3.9 million to develop the Brauna 3 Diamond Project in Brazil's Bahia state, the company has announced.

Vaaldiam says it is prepared to sell off assets to finance the Brauna project, which will focus on establishing diamond production at the site as soon as possible.

CEO Robert Jackson noted that the 2010 bulk samples conducted at Brauna had yielded excellent results both in terms of ore grade and diamond quality. Jackson said that the company was poised to conduct a second bulk sample for its feasibility study on the Brauna 3 kimberlite.

In related news, Vaaldiam has said it will stop its Duas Barras alluvial mine, which is the source of both diamonds and gold. The Duas Barras mine has reportedly not met expectations in the last six months, and the company prefers to invest its resources at Brauna.