3rd Jun 2014 09:14
LONDON (Alliance News) - Stellar Diamonds PLC Tuesday said it is now fast-tracking its Baoule Kimberlite Project in Guinea to its trial mining stage, with plant commissioning expected by the end of August.
The West Africa-focused diamond development company said it has now set a near-term objective to generate cash flow from trial mining at the diamond bearing five hectare Baoule kimberlite pipe.
The Baoule site has been given an internal resource estimate of at least 3 million carats with historical data suggesting a grade of between 13 and 40 carats per hundred tonnes and diamond values in excess of USD200 per carat.
The company has been establishing infrastructure for the project and is currently relocating its earth moving and kimberlite processing plant to the site, with commissioning of the plant expected by the end of August.
It also said that GBP1.9 million in funds, achieved through a share placing in May, will be used to help the development process, making it fully funded to move Baoule into the trial mining stage and in-turn cash flow.
Stellar Diamonds shares were down 3.6% to 1.30 pence on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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