Please see attached a full copy of this mornings announcement from Stellar Diamonds providing an update on their Tongo kimberlite project in eastern Sierra Leone. Please also find the main highlights below.
15 February 2011
AIM: STEL Stellar Diamonds plc ("Stellar" or the "Company")
ENCOURAGING DIAMOND GRADES FROM TONGO KIMBERLITE PROJECT IN SIERRA LEONE
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: * Initial sample of 69 tons returned in-situ grade of 130cpht for Tongo Dyke 1 * 90% of diamonds have been classified as gem quality * Eight diamonds greater than 1 carat recovered * Previous diamond parcel from Tongo Dyke 1 re-valued at $169 per carat * 5 ton per hour Dense Media Separation (DMS) plant fully commissioned and operating
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."
Danielle Walsh Account Executive Direct line: +44(0)20 7861 3867 Mobile: +44 (0)7825522229 Pelham Bell Pottinger 6th Floor, Holborn Gate, 330 High Holborn, London, WC1V 7QD Tel: +44 (0)20 7861 3232 Fax: +44 (0)20 7861 3233 www.pelhambellpottinger.co.uk
....................................... A CarbonNeutral(r) company
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