11 Apr 2012 07:00
11 April 2012
Paragon Diamonds Limited
("Paragon" or the "Company")
(AIM: PRG)
Further bulk sampling results and operational update, Lemphane, Lesotho
Highlights
·; Lemphane Sample P-3 - increased grade of 2.20 cpht & larger stones from tailings reprocessing
·; Satellite Pipe yields a grade of 3.2 cpht
·; Three samples of over 4,700 tonnes processed to date
·; 56% of carats are in 1+ carat diamonds
·; Seven stones ranging from 2-6.3 carats recovered
Paragon Diamonds Limited, the African-focused diamond explorer and developer, announces further results from its bulk sampling programme and operational update from Lemphane, Lesotho.
Update on Lemphane Bulk sampling
Processing of bulk sample material continues at Lemphane, with the treatment of over 4,700 tonnes of sample material completed to date, recovering 90.25 carats at an average diamond size of 0.38 cts/stone. Seven diamonds ranging from 2.0-6.3 carats and twenty two diamonds greater than one carat in weight have been recovered. A provisional diamond size distribution indicates that 56% of carats are present in stones of 1 carat or greater, 34% of carats are present in stones of 2 carats or greater and 14% of carats are in stones of 5 carats or greater.
Increased grade and stone size from 1st Lemphane sample
The Company announces a further update on its results of 16th February. Re-processing of re-crushed DMS tailings has yielded a further 5.08 carats from 9 diamonds, including a single 3.85 carat stone. This raises the total carats recovered to 51.87 carats and increases the overall grade of the sample from 1.96 cpht to 2.20 cpht. At the same time the overall average stone size for the sample remains at 0.46 cts/stone, but more significantly the proportion of carats present in +2 carat stones has increased from 39% to 43%.
Final Results: Sample P-3 - 2,638.3 tonnes ROM / 2,354.4 dry tonnes | |||||
Total Carats | No. Diamonds | Grade cpht | Carats/Stone | Diamonds >2 ct | Diamonds >1 ct |
51.87 | 111 | 2.20 | 0.46 | 6 - (43% of cts) | 15 - (63% of cts) |
Results of Lemphane Satellite Pipe sample
The company has also recently completed the processing of a bulk sample, comprising 574 dry tonnes of material, from the small satellite pipe immediately adjacent to, and to the northwest of the main Lemphane Kimberlite Pipe.
A total of 18.49 carats in 74 diamonds were recovered, at a recovered grade of 3.21 cpht and at an average stone size of 0.24 carats per stone.
Results: Sample Sat-P - 670.1 tonnes ROM / 574.3 dry tonnes | |||||
Total Carats | No. Diamonds | Grade cpht | Carats/Stone | Diamonds >1 ct | Diamonds >0.5 ct |
18.49 | 74 | 3.21 | 0.24 | 3 - (24% of cts) | 12 - (59% of cts) |
Whilst the grade is circa 50% higher than the main pipe, the average stone size and proportion of larger diamonds is somewhat lower. However, at just 0.1 ha in surface area, the satellite pipe represents only a small proportion of the likely ultimate resource at Lemphane.
Results of second Lemphane sample
Processing of a further bulk sample, comprising 1,254 dry tonnes of material, from Pit 2 located towards the NE margin of the kimberlite pipe has also been completed. A total of 19.89 carats in 50 diamonds were recovered, at a recovered grade of 1.58 cpht and at an average stone size of 0.39 carats per stone. Again, larger diamonds predominated, including a pristine 3.71 carat yellow dodecahedral diamond, and 38% of total carats were present in diamonds of one carat or greater.
Results: Sample P-2 - 1,510.9 tonnes ROM / 1,253.7 dry tonnes | |||||
Total Carats | No. Diamonds | Grade cpht | Carats/Stone | Diamonds >2 ct | Diamonds >1 ct |
19.89 | 50 | 1.58 | 0.39 | 1 - (19% of cts) | 4 - (38% of cts) |
Paragon Diamonds Chairman Francesco Scolaro commented: "I am pleased with the continued rapid development of both of our key projects in Lesotho, these positive results continue to confirm our initial expectations of large and high quality stones in line with other high value Lesotho kimberlites."
In accordance with the AIM Rules, the information in this announcement has been reviewed by Stephen Grimmer PhD., MSc., a qualified geologist with over 20 years' diamond exploration experience.
For further information:
Paragon Diamonds Limited Francesco Scolaro - Chairman Simon Retter - Finance Director www.paragondiamonds.com | +44 (0) 20 7099 1940
|
Fox-Davies Capital Ltd (Nomad and Broker) Jonathan Evans Simon Leathers | +44 (0) 20 3463 5010
|
Newgate Threadneedle (Financial PR) | +44(0) 20 7653 9855 |
Josh Royston Richard Gotla
|
Notes to editors
Paragon Diamonds is looking to rapidly develop producing and exploration diamond properties into a portfolio of high value assets located within Africa. To date it has secured a series of alluvial and hard rock assets which its exploration and development teams are working on to progress. The core focus at present are the companies hard rock licences located in Lesotho, a major producing diamond region. The Projects include:
Lemphane Kimberlite project Lesotho (83.7%)
Lemphane is one of five known diamond bearing kimberlite pipes within Lesotho, located 5km from the Liqhobong project. The Environmental assessment plan and access routes and exploration camp have been completed.DMS plant constructed and bulk sampling commenced with 35,000 tonnes of ore stockpiled awaiting processing. Extended bulk sampling of a further 25 - 40,000 tonnes is possible once initial sample completed.
Motete Dyke exploration, Lesotho (83.7%)
Motete is a substantial kimberlite dyke (fissure system) in close proximity to the Lemphane project. Known to be diamondiferous and currently undergoing initial exploration. Initial micro diamond analysis results in 2012 indicated that an in-situ grade of up to 1 carat per tonne is likely. The licence was awarded in December 2011.
Kaplamp diamond hosting Lamproite', Zambia
Kaplamp is a large prospecting licence known to host 14 Lamproite pipes within a known diamondiferous region and with five high profile targets identified for initial evaluation. The area is highly prospective as De Beers recovered significant amount of stones in 60's and 70's but relinquished area as Lamproites were not yet recognised as viable. The Argyle Diamond Mine in Western Australia is the most renowned Lamproite hosted mine - in 1994 produced 39% of worlds diamond production.
Kopje kimberlite exploration, Botswana
This newly awarded prospecting licence covering 15 km sq in highly prospective area 35 km east of DeBeers' large producing Orapa Mine. Initial exploration work planned for Q1 2012.
Konomo Alluvial Mine, Sierra Leone
This Alluvial diamond project covers 162km2 and has an indicated and inferred resource of 119,000 carats with large tracts of the river remaining unexplored. Circa 3,000 carats recovered by Paragon since operations commenced, with a parcel that includes c.34.18 carat "special" stone and 10.18, 10.46 and 9.96 carat gem quality stones.
Mabuki, Tanzania
Located 81km south of Mwanza, Tanzania with good infrastructure nearby (roads, power, water, transport) the licence sits within a known Kimberlite Field. Artisanal activity occurs to the west of licence with diamond bearing gravels identified off the edge of the licence. The intention is to explore (detailed geophysics and sampling) and map-out, then establish drill targets and define a resource. Wardell Armstrong completed a competent persons report on Tanzania in September 2010.