London, England — 14 February 2013 – Stellar Diamonds plc “’ an AIM-listed diamond mining and exploration company focused on West Africa “’ has announced that conceptual economic scoping studies on its Tongo and Droujba projects in West Africa have commenced.
A company statement released here said the studies would determine the financial base case for the projects ahead of pre-feasibility stage.
Stellar chief executive Karl Smithson said that while this resource base could be increased though further exploration drilling, the board considered that the projects now had critical mass. “Moving them through the conceptual study stages is in line with our initial plans, and the results of the studies will enable us to decide whether to move into the pre-feasibility stage later this year,” he added.
The Droujba and Katcha kimberlites have a combined inferred JORC compliant resource of 2.92 million carats at diamond values of $38 and $48 per carat respectively.
Conceptual economic scoping studies will define the preliminary economic and business case for advancing the projects to the pre-feasibility stage. They will take up to six months to complete.
The Tongo Dyke-1 kimberlite has an inferred JORC compliant resource of 1.074Mcts at a modelled average diamond value of US$248 per carat. The study will investigate a mine plan for an operation that can produce in the region of 80,000ctspa over an initial life of mine of 10 years.
The Droujba and Katcha kimberlites have a combined inferred JORC compliant resource of 2.92Mcts at diamond values of US$38 and US$48/ct respectively. The study will only investigate a mine plan for an open pit operation at Droujba, which potentially holds up to 1.5Mcts of the resource, to be mined at a rate of approximately 300,000ctspa over five years.
It will not take into consideration the other resource potential, including the deeper resource areas of the Droujba pipe or the Katcha dyke where only 10% of this 5km long body has been brought into resource to a 150m depth.
Source: Stellar Diamonds. For more information, click here.