HomeDiamonds & GemstonesSwedish company launches Angola diamond project

Swedish company launches Angola diamond project

At work on Petra’s Alto
Cuilo project – one of
the growing number of
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Stockholm, Sweden — MININGREVIEW.COM — 20 January 2009 – International Gold Exploration AB (IGE) – a Swedish exploration and mining group involved in activities in the exploration, acquisition and development of diamond projects in Africa and Scandinavia – is scheduled to launch diamond production at its Luxinge concession in Angola today.

A news release issued here stated that the project would start generating cash in Q1 of 2009. In addition, positive results from the airborne survey performed by the Geological Survey of Finland confirmed the upside Kimberlite potential of the Luxinge project.

“The commissioning of International Gold Exploration’s co-owned Luxinge diamond project is expected to begin on January 20, 2009,” said the release. “IGE’s diamond strategy in Angola is conservative – discover Kimberlite deposits with exploration financed by alluvial diamond production,” it added.

The company is currently executing the first phase of its strategy with the start-up of alluvial diamond production at Luxinge. “The project is expected to have a short start-up period, and the cash flow is expected to be used to recoup IGE’s investment, as well as to potentially invest in expanded alluvial production and Kimberlite exploration,” it explained. “This conservative approach minimises the technical risks and partially reduces the financial requirements.”

The Luxinge pre-treatment, dense media separation and recovery plants are now complete, and there is an estimated 30 000 cubic metres of alluvial gravel stockpiled in front of the pre-treatment plant. Bulk sampling work done by IGE’s geology team estimated that 40% of the alluvial gravel is basal gravel, containing an economic grade and an interesting diamond distribution.

IGE expects production to reach a level of 3, 000 carats per month by March 2009, and says a feasibility study to ramp production up to between 6 000 and 10 000 carats per month is scheduled for completion over the next six months. Positive results could enable the company to start full scale production by mid-2009.