30 Jun 2010 07:00
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES.
30 JUNE 2010
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Bulk Sampling to Commence on Tongo Kimberlite in Sierra Leone
Stellar Diamonds, the London listed (AIM:STEL) diamond mining and exploration company focused on West Africa, is pleased to announce the commencement of a bulk sampling programme on the high-grade diamond bearing Tongo kimberlite dyke in eastern Sierra Leone. The objective is to collect a 1,000 to 2,000 carat bulk sample for diamond grade and value estimations prior to shaft sinking and underground trial mining.
Highlights:
·; Tongo Dyke 1 mapped, drilled and sampled over a 2.5km strike length
·; Mini-bulk sampling results returned 90 carats per hundred tonnes ("cpht")
·; 122 carats from Tongo Dyke 1 have been valued at US$144 per carat
·; Bulk sample of 1,000 to 2,000 carats to be collected and processed
Karl Smithson, Chief Executive Officer, commented:
"Stellar has been preparing for the commencement of this bulk sampling programme for the past two months. We are prioritising the 2.5km long Dyke 1 kimberlite that previously returned a grade of 90cpht and a re-valued diamond price of $144 per carat. The objective is to collect a larger, more representative sample of between 1,000 to 2,000 carats from this high-grade kimberlite prior to making a decision on underground trial mining, similar to what Stellar has achieved at its Kono project, located only 60km to the north of Tongo.
"We are importing a modern, 5 ton per hour DMS plant from the Company's former Weasua project in Liberia, which will be utilised to process the bulk sample. The diamond parcel recovered will be shipped to Antwerp for valuation.
"The Company is also generating cash flow in Guinea and the strategy remains to build on its production profile with the development of its portfolio of high-grade kimberlites in Guinea and Sierra Leone. In the meantime, I look forward to updating shareholders on our progress in the coming months."
About the Tongo Kimberlite Project:
The renowned Tongo diamond field in eastern Sierra Leone is host to a number of very high-grade kimberlites that have never been commercially exploited. Stellar's 100% owned licence hosts four such kimberlites which have been mapped, drilled and sampled by Stellar.
Previous mini-bulk sampling by Stellar of Dykes 1 and 4 returned results of 90 and 100cpht respectively. Independent grade modelling, however, suggests diamond grades of 150cpht for both these dykes. The 122 carats obtained from Dyke 1 during this work have recently been re-valued at $144 per carat. This small parcel contained eight diamonds greater than 1 carat in size with the largest stone weighing 4.8 carats. Stellar considers these results to be significant and justifies the larger scale bulk sampling programme.
It should be noted that the adjacent licence, held by Koidu Holdings, hosts a continuation of the same kimberlites that Stellar has sampled, but bulk sampling by Koidu Holdings returned grades of between 200 and 300cpht.
The 2.5km long Dyke 1 kimberlite is the initial focus for Stellar. A surface bulk sampling programme is due to commence in July, now that the necessary preparations have been completed. The objective is to collect a sample large enough to yield between 1,000 to 2,000 carats so that diamond grade and value information can be obtained in advance of shaft sinking and underground trial mining. The bulk sample will be processed via a 5 ton per hour DMS plant which has been purchased and is currently being re-located from Liberia into Sierra Leone. The programme is expected to take 4 months to complete.
For further information please contact the following or visit the Company's website at www.stellar-diamonds.com.
Stellar Diamonds plc
Karl Smithson, Chief Executive Tel: +44 (0) 7783 707971
RBC Capital Markets
Martin Eales / Daniel Conti Tel: +44 (0) 20 7653 4000
Astaire Securities
Jerry Keen / Charles Vaughan Tel: +44 (0) 20 7448 4400
Pelham Bell Pottinger
Charles Vivian / James MacFarlane Tel: +44 (0) 20 7861 3232
About Stellar Diamonds plc
Stellar Diamonds plc is a London (AIM: STEL) quoted diamond mining and exploration company that has a portfolio of projects in West Africa. Two projects in Guinea are in production, Mandala and Bomboko, which provide cash flow to the Company.
Stellar also owns full rights over four high-grade kimberlites that are the focus of further development. In Sierra Leone the Tongo and Kono projects comprise a series of diamondiferous kimberlite dykes, with the Kono project having produced 4,200 carats of diamonds through underground trial mining by the Company. In Guinea the Company's Droujba kimberlite pipe and Bouro kimberlite dykes are located in proximity to the Company's Mandala mine and demonstrate grades of up to 200cpht and 500cpht respectively.