22 Nov 2010 07:00
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES.
22 November 2010
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Update on Tongo Kimberlite Diamond Project in Sierra Leone
Stellar Diamonds plc, the London listed (AIM:STEL) diamond mining and exploration company focused on West Africa, provides an update on the bulk sampling programme at the Company's 100% owned Tongo kimberlite dyke project in eastern Sierra Leone.
Highlights:
·; Tongo comprises four dykes each between 0.5km and 3km long in eastern Sierra Leone
·; Previous mini-bulk sample of Dyke 1 returned 100 carats per hundred tonnes at $144 /carat
·; Over 500 tonnes collected to date from first 60m section of Dyke 1
·; Construction of processing facility nearing completion, first results expected in early 2011
A bulk sample of approximately 500 tonnes has been collected to date from a 60m section of the Tongo kimberlite Dyke 1, with drilling and blasting now being employed under the supervision of an experienced and qualified underground diamond miner. The kimberlite dyke varies in width from 50cm to over 100cm and although the side walls are stable, support levels are being incorporated to ensure a safe working environment. The objective of the bulk sampling programme is to yield between 1,000 to 2,000 carats for grade and valuation purposes.
Karl Smithson, Chief Executive Officer, commented:
"I am pleased to report that good progress is being made at the Tongo kimberlite diamond project after some initial delays on importing the processing plant. The construction of the processing facility is almost complete and we anticipate the first results in early 2011. In the meantime we are stockpiling ore from Dyke 1 with the target of a total sample of approximately 1,500 tonnes that is representative of the kimberlite. Our previous mini bulk sampling results of Dyke 1 returned encouraging grades of 100 carats per hundred tonnes, with all the diamonds being of gem quality and valued at $144 per carat in June 2010. The same parcel was valued at up to $189 carat in late 2008.
"With the recent commencement of drilling at the Company's Droujba kimberlite pipe in Guinea and the ongoing bulk sampling at Tongo in Sierra Leone, Stellar is delivering on its strategy of developing its portfolio of kimberlite diamond projects."
About Stellar Diamonds plc
Stellar is a London (AIM: STEL) listed diamond mining and exploration company that has a portfolio of projects in West Africa. Two projects in Guinea, Mandala and Bomboko, are undergoing mining and trial mining respectively, which provide cash flow to the Company.
Stellar also owns full rights over four high-grade kimberlites that are the focus of future development. In Sierra Leone at the Tongo project a previous bulk sampling programme returned results of 100 cpht and diamond values of $189 per carat. The Kono project is presently on care and maintenance, however previous underground trial mining has produced 4,200 carats as part of an economic evaluation exercise. In Guinea drilling has recently commenced at the Droujba kimberlite pipe and a bulk sampling programme is planned over the Bouro kimberlite dykes, which are located in proximity to the Company's Mandala mine.
For further information please contact the following or visit the Company's website at www.stellar-diamonds.com.
In accordance with the AIM Rules, the information in this announcement has been reviewed by Karl Smithson, CEO of Stellar, a qualified geologist with 22 years' experience.
Stellar Diamonds plc
Karl Smithson, Chief Executive Tel: +44 (0) 7783 707971
Angus Ogilvie, Finance Director Tel: +44 (0) 7885 201 903
RBC Capital Markets
Martin Eales / Daniel Conti Tel: +44 (0) 20 7653 4000
Northland Capital Partners Limited
Charles Vaughan Tel: +44 (0) 20 7492 4763
Gavin Burnell Tel: +44 (0) 20 7492 4773
Pelham Bell Pottinger
Charles Vivian / James MacFarlane Tel: +44 (0) 20 7861 3232