4 Sep 2012 07:00
4 September 2012
Paragon Diamonds Limited
("Paragon" or the "Company")
(AIM: PRG)
Operational update, Motete Dyke project, Lesotho
Paragon Diamonds Limited, the African focused diamond explorer and developer, is pleased to announce an operational update from its Motete Dyke operation in Lesotho.
Highlights
·; 3rd bulk sample treated - 214 tonnes processed and 130 carats recovered
·; Overall recovered grade of 55 cpht for the Motete Dyke
·; Drilling programme complete - 1,109 metres drilled, kimberlite intersected 13 times
·; Diamonds scheduled for independent valuation
Paragon Diamonds Ltd. announces that is has completed its Motete Dyke bulk sampling and drilling programme. These results will be consolidated and published in an upcoming resource statement and scoping study expected shortly.
Bulk Sampling
Material from trench T2 in the central portion of the dyke has been processed and grades that are consistent with all previous results recorded. Combined with previous results (Trenches T1 & T3) the overall recovered grade calculates at 55 carats per hundred tonnes (cpht).
This recovered grade from the bulk sample plant is as expected when compared to the micro-diamond model, as the current bulk sampling plant is not correctly configured to recover 100% of the present diamonds. A significant number of (especially the smaller) diamonds could not be recovered. Tailings samples are being submitted to DebTec (DeBeers) in Johannesburg for enhanced recovery using "ModRUP" dual wave X-ray recovery, to determine the presence of these additional stones and help optimize future production planning to ensure that the maximum economically viable grade is recovered.
The diamonds recovered so far have now been characterized by a specialist from consultants the MSA Group, and are being prepared for export and independent valuations in the near future.
Sample MTD-T2 consisted of 214.2 dry tonnes of kimberlite and yielded 130.28 carats of diamonds and 1,933 individual stones for a grade of 50 carats per hundred tonnes (cpht). Overall, 595 dry tonnes of pure kimberlite were treated for the recovery of 329.49 carats. Results are per the table below:
MTD-T1 | MTD-T2 | MTD-T3 | Total | |||||
Cts | Stns | Cts | Stns | Cts | Stns | Cts | Stns | |
DTC+15 | 1.72 | 3 | 2.55 | 2 | 1.28 | 1 | 5.55 | 6 |
DTC+13 | 2.50 | 4 | 2.27 | 3 | 1.49 | 2 | 6.26 | 9 |
DTC+11 | 10.65 | 32 | 13.43 | 39 | 11.26 | 33 | 35.34 | 104 |
DTC+9 | 15.28 | 84 | 19.20 | 100 | 14.04 | 77 | 48.52 | 261 |
DTC+7 | 11.98 | 105 | 18.16 | 148 | 14.00 | 119 | 44.14 | 372 |
DTC+5 | 37.46 | 590 | 45.54 | 690 | 39.84 | 628 | 122.84 | 1,908 |
DTC+3 | 15.16 | 455 | 22.66 | 645 | 14.61 | 428 | 52.43 | 1,528 |
DTC+2 | 3.80 | 164 | 4.76 | 207 | 2.30 | 98 | 10.86 | 469 |
DTC+1 | 1.24 | 48 | 1.71 | 99 | 0.60 | 32 | 3.55 | 179 |
Total | 99.79 | 1,485 | 130.28 | 1,933 | 99.42 | 1,418 | 329.49 | 4,836 |
Drilling
The delineation drilling programme at Motete has been completed, and 1,109 metres were drilled in 10 holes. Kimberlite was intersected on 13 occasions, as dual (parallel) dykes were present in three drill holes. A total of 35 metres of kimberlite core was recovered, and the actual horizontal width of the dyke varied between 2.13-1.30 metres with an average width at depth of 1.49 metres. The deepest hole intersected kimberlite at 170 meters below the Motete Valley floor at 2,280 metres above sea level, where the horizontal width was 1.53 metres. Thus the presence of the dyke has been demonstrated over 470 metres of vertical height and it remains open at depth. Survey data from the drilling is being integrated with detailed surface mapping to generate a wire-frame model of the dyke and hence an accurate resource tonnage.
The evidence from drilling indicates that the dyke does not taper significantly with depth, maintaining a width well in excess of one metre. As such, the original in-house estimate of 1+ million tonnes to a depth of 100 m below valley floor, and a deposit highly amenable to low-dilution underground mining, appears to be validated.
Paragon MD Stephen Grimmer commented: "Following the conclusion of evaluation activities at Motete, we now eagerly await the delivery of the maiden resource statement by the MSA Group and the scoping study in by Paradigm Project Management both of which are currently being prepared. Also, following the recent agreement to project finance the Motete dyke with our local partners in Lesotho we are now well positioned to begin planning and development of a mine at Motete, once the outstanding tasks have been successfully completed."
In accordance with the AIM Rules, the information in this announcement has been reviewed by Stephen Grimmer PhD., MSc., a qualified geologist with 25 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
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Fox-Davies Capital Ltd (Nomad and Broker) Jonathan Evans Simon Leathers | +44 (0) 20 3463 5010
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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 (85%)
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 (85%)
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.