16 Oct 2013 07:00
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES.
16 October 2013
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
First Ore Blast at Tongo Kimberlite Project, Sierra Leone
Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, is pleased to announce the first blast in its bulk sampling programme of its 100% owned Tongo kimberlite dyke project in eastern Sierra Leone .
Highlights:
· First ore blast completed successfully and on schedule
· Targeting diamond parcel of up to 2,000 carats for enhanced diamond value modelling
· DMS plant on site and ready to process bulk sample material
· Photographs to be uploaded on to the Company's web site
· Tongo diamonds are of exceptional quality with average modelled value of $248/ct
Chief Executive Karl Smithson commented:
"The commencement of bulk sampling at Tongo is a significant milestone and was successfully undertaken by our experienced mining team. The objective of the bulk sampling programme is to obtain a representative diamond parcel for valuation and price modelling which forms an integral part of the feasibility study process. The Tongo Dyke-1 diamonds are of exceptional quality with a 1,140 carat parcel previously achieving a modelled average value of $248 per carat, even though this parcel did not contain any diamonds larger than 4 carats.
"We will soon commence processing the bulk samples though our on-site plant and look forward to updating shareholders on results as we progress".
Tongo Dyke-1 Bulk Sampling
Over the coming months we will be extracting, through controlled drilling and blasting, approximately 2,000 tonnes of Dyke-1 kimberlite. The extracted kimberlite will be processed via the on-site 5tph DMS plant with parcels of diamonds being exported to Antwerp at intervals for valuation. Once completed, the whole sample will be subject to diamond value modeling by an independent industry expert. The bulk sample programme is likely to take approximately 9 months to complete, during which time the Company will continue to provide progress updates with photographs also being uploaded on to the Company's web site.
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.
Stellar Diamonds plc
Karl Smithson, Chief Executive Officer Tel: +44 (0) 20 7010 7686
Philip Knowles, Chief Financial Officer
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