5 Mar 2013 07:00
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES.
05 March 2013
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Renewals of Prospective Exploration Licences in Guinea
Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces the renewal of two diamond exploration licenses in Guinea.
Highlights:
·; Two exploration licences adjacent to Company's Droujba project renewed for two years
·; Licences cover 118km2 and considered prospective for discovery of diamondiferous kimberlites
·; Droujba currently hosts a 3 million carat diamond resource
Chief Executive Karl Smithson commented:
"We are pleased that these exploration licences, held by our subsidiary company Friendship Diamonds, have been renewed for a further two years. This follows from the announcement in January that our Droujba licence was also successfully renewed for a further two years.
"These two exploration licences are located adjacent to the Company's Droujba kimberlite pipe and Katcha kimberlite dyke which have a current 3 million carat (JORC inferred) diamond resource. A number of unresolved diamond and indicator mineral anomalies are located in these licence areas, which indicates the potential for as yet undiscovered diamondiferous kimberlites.
"While our short term objective is to complete the economic scoping studies on the Droujba diamond resource we shall also look to test the significant exploration potential of these two licences."
Licence details
The two exploration licences, held by subsidiary company Friendship Diamonds SA, are located to the immediate west of the diamondiferous Droujba kimberlite pipe and Katcha dyke, and have been renewed for a further two years to 24th February 2015. This is the second renewal for the licences and a further 50% area has been relinquished that is not considered to be prospective, reducing the combined licence area to 118 km².
The ground held under licence contains discrete and significant indicator mineral anomalies first identified during the 1960's and confirmed by Stellar during two phases of sampling programmes conducted on the licence to date. A number of kimberlite dykes have been identified in this area, however the anomalies identified suggest the presence of further kimberlites, including the western extension of the five kilometre long Katcha dyke. The high interest indicator mineral chemistry plus the wide distribution of diamonds within the nearby Diani hydrographic basin implies that a number of the kimberlites in this area may be diamond bearing.
About Stellar Diamonds plc
Stellar is a London (AIM: STEL) listed West African focussed diamond mining and exploration company which is advancing the Droujba and Tongo kimberlite projects in Guinea Sierra Leone respectively. These projects have a combined JORC compliant, inferred diamond resource of approximately 4 million carats. In April 2012 the Company announced a dispute with the Ministry of Mines in Sierra Leone over its two Kono licences and remains in discussions with the Government of Sierra Leone regarding the proper reinstatement of these licences.
For further information contact the following or visit the Company's website at www.stellar-diamonds.com.
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
(Co-Broker)
Martin Lampshire, Antony Legge Tel: +44 (0) 20 7776 6550