🕐15.02.11 - 08:27 Uhr
Encouraging Diamond Grades From Tongo Kimberlite Project In Sierra Leone
=======================================================================
Re: News Releases - Tuesday, February 15, 2011
Encouraging Diamond Grades From Tongo Kimberlite Project In
Sierra Leone
=======================================================================
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US
NEWS WIRE SERVICES.
Stellar Diamonds plc ("Stellar" or the "Company")
Stellar Diamonds plc, the London listed (AIM:STEL) diamond mining and
exploration company focused on West Africa, is pleased to report
encouraging initial diamond grades from bulk sampling at the Companys
100% owned Tongo kimberlite project in eastern Sierra Leone.
Highlights:
Karl Smithson, Chief Executive Officer, commented:
"The initial processing results from the Tongo kimberlite bulk sampling
programme are highly encouraging, with an in-situ kimberlite grade of
130 carats per hundred tons ("cpht") being recovered from the first 69
tons processed during the commissioning of the DMS plant.
Taking into
account dilution incorporated during the sampling process, the diluted
grade is calculated at 86cpht.
The predominance of gem quality stones
in the diamond population so far observed can only bode well for the
future diamond value of this kimberlite body.
"We are accelerating the processing rate in order that a representative
parcel of diamonds can be exported to Antwerp for valuation purposes.
The objective is to collect a 1,000 carat to 2,000 carat bulk sample,
the results of which will determine the next phase of evaluation and
development work.
"Stellars strategy is to grow significantly by developing a series of
high-grade kimberlites into economic diamond mines.
In the past six
months Stellar has delivered excellent drilling and microdiamond
results from the Droujba kimberlite pipe in Guinea and now we are able
to announce initial high-grades from the Tongo kimberlite dyke.
We will
continue the development of these key assets over the coming months."
Tongo Bulk Sampling
A total of 1,000 tons of sample has been collected to date from a 70m
long section of the 2.5km long kimberlite Dyke 1.
The sample is being
extracted by drilling and blasting at a depth of 5m to 10m below
surface.
The kimberlite averages 70cm in width and the sample trench
averages 1.04m in width with the fresh granite that comprise the wall
rock proving to be hard and stable in nature.
The first 1,000 tons have been batched into 5 samples to date.
The
first sample currently being processed weighs approximately 303 tons
and is comprised of 201 tons of kimberlite and 102 tons of country rock
incorporated during the drilling and blasting of the bulk sample,
giving an effective dilution of 34% to the in-situ kimberlite.
Tongo Processing Plant
Construction and commissioning of the Tongo processing plant has now
been completed.
The plant has a bottom cut-off size of 1mm and is
comprised of a small scrubber, a primary jaw and secondary cone crusher
and a 5 ton per hour DMS cyclone.
Diamond recovery is undertaken over
grease tables in a security controlled container.
Now that plant commissioning has been completed the rate of processing
is expected to increase going forward.
Tongo Bulk Sampling Results
The first 68.95 dry tons of kimberlite processed during commissioning
of the plant yielded 59.25 carats of +1mm stones at a diluted grade of
85.93cpht.
This result represents a diluted sample grade as an
estimated 34% of the sample comprised granitic country rock
incorporated during the blasting and sampling process.
The + 1mm
in-situ grade of the kimberlite sample is therefore calculated to be
approximately 130cpht.
Note: In-situ kimberlite tons calculated by subtracting the granite
tons incorporated during the drilling and blasting process
Tongo Dyke 1 Diamond Characteristics
Of the 59.25 carats so far recovered from the bulk sample 53.46 carats
(90%) are classified as being of gem quality, whereas 5.87 carats (10%)
are classified as non-gem.
The goods have been further classified as
predominantly sawables (53%) and makeables (41%) with a small clivage
(6%) component.
Two stones over 2 carats and six stones of over 1 carat have been
recovered from this small parcel, which suggests a good coarse size
distribution to the diamond population.
The largest diamonds contained
in the initial parcel weigh 2.64, 2.02, 1.42, 1.41, 1.16, 1.12, 1.10
and 1.06 carats.
While no conclusions can yet be drawn as to the diamond value of the
Dyke 1 kimberlite, due to the small parcel of stones obtained so far, a
130 carat parcel of stones previously recovered from Dyke 1 by Stellar
was recently re-valued for the Company at $169 per carat.
The same
parcel was valued at $144 per carat in May 2010, with the relative
price increase reflecting the improvement in the diamond market in the
second half of 2010.
The average diamond size from the current 59.25
carats is 0.17 per stone, almost twice that of the previous 130 carats
of 0.09 per stone, which would possibly suggest a higher diamond value
for the smaller parcel.
About Stellar Diamonds plc
Stellar is a London (AIM: STEL) listed diamond mining and exploration
company that has a portfolio of projects in West Africa.
Stellar also owns full rights over four high-grade kimberlites that are
the focus of exploration and development.
In Sierra Leone at the Tongo
project a bulk sampling programme is ongoing on one key kimberlite to
assess the diamond grade and value.
At the Kono underground trial mine,
bulk sampling by the Company has produced 4,200 carats as part of an
economic evaluation exercise.
In Guinea drilling is continuing on the
diamondiferous Droujba kimberlite pipe and bulk sampling is being
planned on the high grade Bouro kimberlite dyke, which is adjacent to
the Companys Mandala alluvial diamond mine.
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.
Stellar Diamonds plc
Karl Smithson, Chief Executive
Tel: +44 (0) 7783 707971
Angus Ogilvie, Finance Director
Tel: +44 (0) 7885 201 903
RBC Capital Markets
Martin Eales / Daniel Conti
Tel: +44 (0) 20 7653 4000
Northland Capital Partners Limited
Charles Vaughan / Gavin Burnell
Tel: +44 (0) 20 7492 4763
Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 20 7861 3232
=======================================================================
Copyright (c) 2011 STELLAR DIAMONDS PLC (All) All rights reserved.
For more information visit our website at
http://www.stellar-diamonds.com/ or send
mailto:
Message sent on Mon Feb 14, 2011 at 11:08:50 PM Pacific Time
=======================================================================