🕐18.10.10 - 09:00 Uhr
Bomboko Diamond Mine Progress Report
=======================================================================
Re: News Releases - Monday, October 18, 2010
Bomboko Diamond Mine Progress Report
=======================================================================
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US
NEWS WIRE SERVICES.
AIM: STEL
Stellar Diamonds plc ("Stellar" or the "Company")
Stellar Diamonds, the London listed (AIM:STEL) diamond mining and
exploration company focused on West Africa, is pleased to announce an
operational update at its Bomboko trial diamond mine in south east
Guinea for the third quarter of 2010.
Bomboko Diamond Mine - Quarterly Highlights:
.
Production of 576 carats
.
Diamond sales of 1,664 carats at an average price of $115 per carat
.
Latest sales price achieved of $132 per carat
.
Total production of 5,116 carats from trial mining at Bomboko to date
.
Optimisation of plant to enhance diamond recoveries on going
Two parcels of diamonds were sold from Bomboko in the third quarter,
comprising 1,664 carats for an aver-age sales price of $114.82,
generating revenue of $191,057.
The sale of the most recent parcel of
815 carats achieved a higher average sales price of $132.07 per carat,
reflecting the general improvement in global dia-mond prices.
As anticipated, trial mining at Bomboko was temporarily suspended in
early August due to the seasonal rains.
Production for the quarter was
therefore reduced from the second quarter (576 carats versus 1,510
carats).
Total production from trial mining at Bomboko has now
reached 5,116 carats at an average grade of 4 carats per hundred tonne
of gravel.
Resource Definition Ongoing
The Bomboko diamond operation currently has an inferred resource at
41,000 carats.
The Company considers this may be significantly expanded
and has therefore been undertaking a programme of geological mapping
designed to identify additional resource areas.
Trial mining by way of
a series of regular mine cuts across these potential new resource areas
will commence in late October.
In the meantime the mine plant is being
modified and upgraded in order to enhance diamond recoveries.
Furthermore, an X-Ray Flow sort diamond recovery module is being
installed and this is expected to further increase diamond recovery and
security.
Karl Smithson, Chief Executive Officer, commented:
"We are very encouraged by the increase in diamond prices received for
parcels sold from the Bomboko trial diamond mine.
The interruption of
operations by heavy seasonal rains has provided the Company with the
opportunity to install improved equipment and undertake modification to
the mining process which are anticipated to improve diamond recoveries
once production resumes.
With the plant upgrade complete, our focus
will be to expand the resource at Bomboko in order to deliver
sustainable production over a number of years."
About Stellar Diamonds plc
Stellar Diamonds plc is a London (AIM: STEL) listed diamond mining and
exploration company that has a portfolio of projects in West Africa.
Two projects in Guinea, Mandala and Bomboko, are in mining and trial
mining respectively, which provide cash flow to the Company.
Stellar also owns full rights over four high-grade kimberlites that are
to be the focus of future development.
In Sierra Leone at the Tongo
project a bulk sampling programme is currently underway on one key
kimberlite to assess the diamond grade and value, whereas at the Kono
project underground trial mining has produced 4,200 carats as part of
an economic evaluation exercise.
In Guinea the Companys Droujba
kimberlite pipe and Bouro kimberlite dykes are located in proximity to
the Companys Mandala mine and demonstrate high diamond grades.
Droujba
will be drilled in the near future.
For further information please contact the following or visit the
Companys website at www.stellar-diamonds.com.
In accordance with the AIM Rules, the information in this announcement
has been reviewed by Karl Smithson, CEO of Stellar, a qualified
geologist with 22 years experience.
Enquiries:
Stellar Diamonds plc
Karl Smithson, Chief Executive
Tel: +44 (0) 7783 707 971
Angus Ogilvie, Finance Director
Tel: +44 (0) 7885 201 903
RBC Capital Markets
Martin Eales / Daniel Conti
Tel: +44 (0) 20 7653 4000
Astaire Securities
Charles Vaughan
Tel: +44 (0) 20 7492 4763
Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 20 7861 3232
Associated File:
http://www.stellar-diamonds.com/i/pdf/news/2010/STEL 13-10 Bomboko Q3 Update - 18-10-10.pdf
129 KB in size, approx.
25 seconds to download at 56.6Kbps
=======================================================================
Copyright (c) 2010 STELLAR DIAMONDS PLC (AIM:STEL) All rights reserved.
For more information visit our website at
http://www.stellar-diamonds.com/ or send
mailto:
Message sent on Sun Oct 17, 2010 at 11:53:15 PM Pacific Time
=======================================================================