Stellar Diamonds Regulatory News (STEL)

21 Jul 2009 07:00

21st July 2009

GUINEA PRODUCTION UPDATE

16.27 carat stone sold for USD1,000 per carat

The remaining 416.73 carats sold for USD34,000

Overall value of USD116 per carat

Expansion of production underway

The board of West African Diamonds plc, the AIM listed diamond miner (AIM: WAD), is pleased to report on the sale of a sample parcel of diamonds from it's 100% owned Bomboko alluvial diamond mine in Guinea.

The diamond parcel weighing 433 carats was sold in Antwerp for USD50,270. The largest stone, a 16.27 carat gem, was sold for USD1,000 per carat, with the remaining 416.73 carats being sold for USD34,000. 

WAD is now expanding production at the Bomboko mine from 3,500 to 35,000 tonnes per month and based on current production expects a grade of 7cpht. The expanded production plant is currently being commissioned and the higher production rate is expected to be in place within eight weeks.  

James Campbell, Deputy Chairman of West African Diamonds, commented:

"We are pleased with the progress at the Bomboko Mine. The price per carat from what was a spot sale of a small sample is most encouraging. Combining the carat value with the grade gives an economical return per tonne of gravel mined. We are moving quickly to expand production to 35,000 tonnes per month. All essential equipment is on-site and is currently being commissioned."

Enquiries:

www.westafdiamonds.com