3rd Sep 2013 11:43
LONDON (Alliance News) - Stellar Diamonds PLC Tuesday said that has started its bulk sampling at its Tongo project in Sierra Leone, as part of a planned feasibility study regarding production capabilities.
The diamond development company focused on West Africa, said it is targeting a diamond parcel of up to 2,000 carats, for enhanced diamond-value modelling.
The company said the Tongo project has a current Joint Ore Reserves Committee-compliant inferred resource of 1.1 million carats at 120 carats per hundred tons, and USD248 per carat.
Stellar Diamonds said it intends to drill, blast and process roughly 2,000 tonnes of kimberlite from the previous bulk sample site on Dyke-1. It said it yielded some 1,150 carats from its previous bulk sampling, from which its current diamond valuation is modelled. However it said for the feasibility study, a larger parcel of diamonds is needed to provide further confidence in the parameter.
The company said that the first blasting of kimberlite material is expected to start in early October.
"The commencement of the next and larger phase of bulk sampling is an important step in the feasibility process as it will increase our confidence in the average diamond values for Dyke-1. Simultaneously, we are in discussions with a number of independent consulting groups, one of which shall be selected to oversee the definitive feasibility study. We also intend to explore and assess other kimberlites within the Tongo licence area, to further enhance the diamond resource base and project value. As previously reported sampling of Dyke-4 returned a grade and value of 110cpht and $140 per carat respectively," said Chief Executive Karl Smithson in a statement.
Stellar Diamonds shares were trading 0.95 pence per share, down 5.0%, at midday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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