11th Nov 2013 13:04
LONDON (Alliance News) - Stellar Diamonds PLC Monday said it has renewed its Mandala Mining Licence in south eastern Guinea for a further five-year period.
The AIM-listed diamond development and production company focused in West Africa said that as part of the renewal process, and in accordance with the mining law, the licence was reduced in area and now covers a total of five square kilometres.
Stellar said it is now considering options to restart production following improvements in rough diamond prices.
"The board is currently considering funding options at the project level which would enable the company to bring Mandala back into production in early 2014," Chief Executive Karl Smithson said in a statement.
The company said that based on the previous mining rates at Mandala, a further 200,000 carats are modelled to remain in resource, and there is significant potential for additional untested channels.
Previous mining at Mandala yielded 128,000 carats at a grade of 33 carats per hundred tonnes with gems up to 37 carats.
Stellar Diamonds shares were up 8.6% to 1.20 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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