3 Sep 2013 07:00
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES.
3 September 2013
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Commencement of Bulk Sampling for Definitive Feasibility Study at Tongo Project
Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, is pleased to announce the commencement of bulk sampling at its Tongo project as part of the planned feasibility study of the 1.1 million carat resource at Dyke-1.
Highlights:
· Targeting diamond parcel of up to 2,000 carats for enhanced diamond value modelling
· JORC compliant inferred resource of 1.1 million carats at 120cpht and $248 per carat
· Bulk sampling to include adjacent high-grade Dyke-4 later in the feasibility process
· First blasting of kimberlite material anticipated to commence in early October
Chief Executive Karl Smithson commented:
"The commencement of the next and larger phase of bulk sampling is an important step in the feasibility process as it will increase our confidence in the average diamond values for Dyke-1. Simultaneously, we are in discussions with a number of independent consulting groups, one of which shall be selected to oversee the definitive feasibility study.
"We also intend to explore and assess other kimberlites within the Tongo licence area, to further enhance the diamond resource base and project value. As previously reported sampling of Dyke-4 returned a grade and value of 110cpht and $140 per carat respectively.
"We look forward to updating shareholders in due course".
Tongo Dyke-1 Resource and Scoping Study Results
As previously announced the Tongo project has a current JORC compliant inferred resource of 1,074,000 carats at a grade of 120cpht and modelled average diamond value of $248 per carat giving an in-situ value of $298/t of kimberlite ore. The Dyke-1 resource remains open at depth. An independent scoping study for Tongo Dyke-1 was announced on the 24th July 2013 and demonstrated robust, positive economics which justifies advancing the project to the definitive feasibility stage.
Added resource potential exists from the adjacent diamondiferous kimberlites, notably Dyke-4 which has a bulk sample grade of 110cpht and diamond value $140/ct, giving an in-situ value of $154/t of kimberlite ore. Furthermore, Dykes-2 and 3 have modelled grades of 140cpht and 185cpht respectively based on representative microdiamond sampling. Maps and selected photos of the Tongo dyke project are available through the links at the end of this RNS.
Tongo Dyke-1 Bulk Sampling
Stellar intends to drill, blast and process approximately 2,000 tonnes of kimberlite from the previous bulk sample site on Dyke-1. Previously, some 1,150 carats have been yielded from bulk sampling by the Company and on which the current diamond valuation is modeled. For the feasibility study a larger parcel of diamonds is recommended to provide further confidence in this important parameter.
An experienced, South African miner with the necessary blasting qualifications has recently been recruited and is on site at Tongo. The blasted material will be extracted from the dyke and hauled 600m to the camp site where it will be processed via the Company's 5tph DMS plant under observation from Government representatives. The first blasting is expected to commence in early October.
About Stellar Diamonds plc
Stellar is a London (AIM: STEL) listed West African focussed diamond mining and exploration company which is advancing the 1.1 million carat Tongo Dyke-1 resource into the feasibility stage and towards a production decision. In addition, the Company holds the Droujba project which has a defined 3 million carat resource. Stellar remains in dispute with the Ministry of Mines in Sierra Leone regarding its two Kono licences and is pursuing both diplomatic and legal channels to ensure the proper reinstatement of these licences.
For further information contact the following or visit the Company's website at www.stellar-diamonds.com.
http://stellar-diamonds.com/wp-content/uploads/2013/09/Tongo-Project-Map.jpg
http://stellar-diamonds.com/wp-content/uploads/2013/09/Tongo-Blasting.jpg
http://stellar-diamonds.com/wp-content/uploads/2013/09/Tongo-Process-Plant.jpg
http://stellar-diamonds.com/wp-content/uploads/2013/09/Tongo-Dyke-1-Diamonds.jpg
http://stellar-diamonds.com/wp-content/uploads/2013/09/Tongo-Drilling.jpg
Stellar Diamonds plc
Karl Smithson, Chief Executive Tel: +44 (0) 20 7010 7686
Charles Stanley Securities
(Nominated Advisor and Joint Broker)
Mark Taylor, Marc Milmo, Carl Holmes Tel: +44 (0) 20 7149 6000
Daniel Stewart & Company plc
(Joint-Broker)
Martin Lampshire, Antony Legge Tel: +44 (0) 20 7776 6550