20th Mar 2014 10:31
LONDON (Alliance News) - Stellar Diamonds PLC Thursday said its pretax loss was flat in its first-half as administrative expenses went towards the development of its Baoule and Tongo projects.
The Sierra Leone and Guinea focused diamond miner said its pretax loss remains flat at USD1.5 million for the six months ended December 31, with all of the loss being attributed to administrative expenses.
The company, which is yet to achieve any revenues, said its costs during the period went towards the development of its Tongo Kimberlite Dyke Project in Sierra Leone and its Baoule Kimberlite Pipe Project in Guinea.
Stellar Diamonds said GBP800,000 was invested during the period in pursuit of advancing its key projects through economic scoping studies and into feasibility study stage with the objective of reaching a production decision on Tongo and defining a 3 million carat resource at Baoule by the fourth quarter.
On Tuesday the company said that bulk sampling at Tongo was continuing to yield high grades and exceptional quality diamonds, with stones up to 6.7 carats in size. Its said processing to date had yielded 551.6 carats at an average grade of 126.3 carats per hundred tonnes.
The company also expects grades to further increase as more diamonds are recovered through re-processing. It wants to recover a minimum 1,000 carat parcel from Tongo so it can confirm diamond grades and values.
"With impressive high grade results and consistently outstanding gem quality diamonds coming from bulk sampling at Tongo, and the exciting prospect of our potentially "game-changing" Baoulé project, 2014 is set to be a high impact year for Stellar," non-executive Chairman Lord Daresbury said in a statement.
Stellar Diamonds shares were up 3.7% at 2.12 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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