Strong Progress at Tongo Diamond Project, Sierra Leone
15 January 2014
- Significant progress has been made in advancing the project up the development curve towards production with Definitive Feasibility Study (“DFS”) underway
- 650 tonnes bulk sample already collected as part of the Dyke-1 feasibility study
- Sample processing has commenced using the Company’s on-site 5tph DMS plant
- Objective to recover a minimum 1,000 carat parcel for diamond grade and value confirmation
- First results expected to be reported in early February
- Previous results established a grade of 120cpht at $248 per carat from a 1,050 carat parcel
Stellar Diamonds Chief Executive Karl Smithson said, “We continue to make excellent progress in proving the inherent value of the high grade and high value 1.1 million carat resource of Dyke-1 at Tongo. Good progress has been made on the bulk sampling and I look forward to reporting processing results in early February. Our focus for 2014 is the completion of a DFS on which a production decision will be made. The project has already yielded attractive diamond grades and values and we remain confident that we have an exciting opportunity to crystallise value for shareholders by advancing Tongo, which is located in a highly prospective diamondiferous region, into production.”
Tongo Project Update:
The DFS of the 1.1 million carat diamond resource is on-going and aimed at ascertaining the economic parameters of the Tongo project. The grade and average modelled diamond value of Dyke-1 has been established at 120cpht and $248 per carat from a 1,050 carat parcel, with the current bulk sampling work geared to providing a larger diamond parcel for more robust diamond valuation work.
Bulk sampling of the Dyke-1 bulk sample started in October 2013 and has to date delivered 650 tonnes of material to the sample stockpile. Processing of this material has commenced today using the Company’s on-site 5 tonne per hour DMS plant. The plan is to process around 100 tonnes per week with initial results being available in early February.
Drilling and blasting of Dyke-1 will continue over the next few months, with the intention of collecting sufficient material to deliver a diamond parcel of between 1,000 and 2,000 carats for enhanced diamond value modelling. The whole process is expected to be completed by mid-year when the results will be handed across to the independent consultants selected for the feasibility study.
About Stellar Diamonds plc:
Stellar is an AIM quoted (AIM: STEL) listed West African focused diamond mining and exploration company which is advancing the 1.1 million carat Tongo Dyke-1 resource into the feasibility stage and towards a production decision in 2014. The Company recently signed a joint venture to earn a 75% interest over the multi-million carat potential 5 hectare Baoulé pipe in Guinea. In addition, Stellar holds the 3 million carat Droujba project and continues to pursue both diplomatic and legal channels to ensure the proper reinstatement of its Kono licences.
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For further information contact the following or visit the Company’s website at www.stellar-diamonds.com.
|Karl Smithson||Stellar Diamonds plc||Tel: +44 (0) 20 7010 7686|
|Philip Knowles||Stellar Diamonds plc||Tel: +44 (0) 20 7010 7686|
|Antony Legge||Daniel Stewart & Company plc||Tel: +44 (0) 20 7776 6550|
|Ciaran Walsh||Daniel Stewart & Company plc||Tel: +44 (0) 20 7776 6550|
|Martin Lampshire||Daniel Stewart & Company plc||Tel: +44 (0) 20 7776 6550|
|Hugo de Salis||St Brides Media & Finance Ltd||Tel: +44 (0) 20 7236 1177|
|Lottie Brocklehurst||St Brides Media & Finance Ltd||Tel: +44 (0) 20 7236 1177|