Stellar Diamonds Updates Resource Estimate For S. Leone Project

(IDEX Online) – Stellar Diamonds plc, which is focused on West Africa, has updated its resource estimate for its Tongo kimberlite Dyke-1 project in eastern Sierra Leone.

These include a 35-percent increase in JORC-compliant inferred resources to 1,447,000 carats for Dyke-1. Bulk sampling results have led to a 37 percent increase in average diamond grade to 165 carats per hundred tones.

The grade and resource increase “underpins expected excellent project economics” with diamond price models of $145 and $270 per carat.

There is an in-situ kimberlite value estimated at $239-$324 per tonne, and in-situ resource value of $214 million to $290 million.

A surface and underground mining study is to be announced in the near future, and there is additional value potential from further dykes within the project.

Chief Executive Karl Smithson commented: “The combination of high grades and high diamond values make this kimberlite one of the highest value kimberlites in the world in terms of in-situ value of dollar per tonne. The significant increase in the diamond grade and resource for Dyke-1 to 1.45 million carats is an extremely positive step in the development of this high grade and high value per tonne diamond asset.

“Importantly further resource potential exists from three parallel kimberlite dykes which form part of the Tongo dyke swarm. This includes the 1km long Dyke-4 which has previously been bulk sampled and returned a diamond grade estimate of 110cpht and an estimated average diamond value of $140 per carat.

“Consistent with our focused strategy of accelerating our key kimberlite projects through the development pipeline and into production, as evidenced by the recent commencement of trial mining at our Guinean Baoulé project, a study into surface and underground mine development at Tongo is being finalized. In line with this we are currently re-calculating our financial model to reflect the resource upgrade and mine plan and I look forward to updating shareholders with our progress in the near future.”

Speaking on the issue of the Ebola outbreak, Stellar Diamonds said it was “encouraged by the support given to Sierra Leone by the British government and the various NGOs who are tackling the Ebola virus on a daily basis.

“Although the number of cases is increasing in the west of the country it is encouraging to note that there have been no new cases in the Kenema and Tongo areas for over one month, which would suggest that the virus is now contained and under control in the project area. The company believes that as the capacity to treat the affected increases so the virus will be contained throughout the country and eventually eradicated.”