9th Oct 2014 08:09
LONDON (Alliance News) - Stellar Diamonds PLC Thursday said it has recovered its first diamonds after the mine plant at Baoulé kimberlite pipe in Guinea was commissioned last month.
In a statement, the company said the first, limited, ore processing yielded over 50 carats of diamonds, including stones of 3.76 carats and 1.37 carats.
Its new plant can treat 100 tonnes of ore an hour, and Stellar plans to move to full-scale trial mining at the site once the plant optimisation is complete. Its objective is to produce at least 100,000 tonnes for diamond grade and value estimation.
"Our next objective is to optimise the commissioning of the plant before increasing the volume throughput of kimberlite ore, which could take a few weeks further. Whilst this large scale bulk sampling, or trial mining, is expected to establish the diamond grade and value of the kimberlite pipe to a high degree of confidence, it is also expected to provide cash flow to the company over the next twelve months," Stellar Diamonds Chief executive Karl Smithson said in a statement.
The Baoulé kimberlite pipe was discovered in 1999 and was subject to drilling and initial bulk sampling by earlier operators. In 2000, a parcel of 509 carats produced by the pan plant, which did not contain any large stones, was sold for USD157 a carat, but Stellar thinks there may be considerable upside on this price and the same parcel could realistically be expected to achieve prices in excess of USD200 per carat in the current market.
Stellar said it was keeping a close eye on the Ebola outbreak in the region, but the area in which Baoule is located has not yet had a case. It has implemented precautions like shealth screening and restrictions on staff travel.
Stellar Diamonds shares were down 2.2% at 1.32 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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