London, England — 27 March 2012 – Stellar Diamonds plc “’ the AIM-listed diamond development company focused on West Africa “’ has announced a maiden resource for its Tongo kimberlite dyke project in Sierra Leone which confirms its potential as a high value, high quality growth asset for the company.
In a news release issued here, the company confirms a 660,000 carat JORC-compliant inferred resource for Dyke-1, and a resource grade of 120cpht (+1.0mm cut-off). It also reveals a high quality diamond value, modelled at between US$225 and US$270 per carat (+1.0mm cut-off), and the in-situ contained diamond value is estimated by Stellar to be between US$148 and US$178 million to date.
The news release goes on to point out that the kimberlite remains open along strike and at depth, and mentions the potential to grow the resource at Dyke-1 as well as adjacent dykes
Chief executive Karl Smithson commented: “This is a significant milestone for Stellar Diamonds, as we look to extract value from our portfolio. The maiden resource at Tongo provides a very strong base from which to move forward with our strategy focused on accelerating our kimberlite projects through to production,” he added.
“In addition there is 25% of the mapped strike of Dyke-1 yet to be drilled into the resource category, and there is considerable potential to expand the resource with depth. Furthermore, additional resource potential exists from other nearby kimberlite dykes, including the 1km-long Dyke-4, which has recently been bulk sampled and returned a diamond grade of 109cpht and an average diamond value of US$100 per carat,” Smithson continued.
“The high diamond grades and values exhibited by Dyke-1 make it one of the highest value kimberlites in terms of dollars per tonne worldwide, and this maiden resource provides a robust platform for Stellar to unlock significant shareholder value,” he concluded.
Source: Stellar Diamonds plc. For further details click here.