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São Luis Mining, Inc. is a "Conflict Free" diamond and precious metals mining, exploration, and marketing company. Its strategy is to seek out and acquire producing mineral assets in North and South America. São Luis Mining, Inc. is positioned to become a major diamond producer in Brazil with its 51% interest in Comercio e Mineração São Luis Ltda., a joint venture with SL Mineradora Ltda. The joint venture operates two properties and an existing processing plant in the São Luis River Basin in the state of Mato Grosso, considered one of the most productive diamond districts in Brazil. The two properties total 2,778.51 hectares (6,863 acres) are located approximately 30 kilometers (19 miles) from the town of Juina. The first concession consists of 1,889 hectares (4,666 acres) and began production in 2000. The National Department of Mineral Production (DNPM) has documented 119,334 carats of diamonds produced from this property in 2004 and 2005. The Company will invest $4.5 million in the joint venture which will be used for additional mining equipment and the improvements to the mine's infrastructure. Of this amount, $2 million will be used to improve the existing facility and to acquire two additional diamond sorters for the processing plant. The mine currently has one diamond sorter working at full capacity. This limits the quantity of diamonds that are produced. São Luis Mining believes that the addition of two more diamond sorters and the other planned improvements to the mining operation will increase production of the mine three-fold within six months. The remaining $2.5 million will be used to develop the second diamond property which will include the additional processing plants and heavy equipment. This concession totals 889.38 hectares (2,197 acres) and is adjacent to the first property.