31 Jul 2012 07:00
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES.
31 July 2012
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Tongo Licence Renewed in Sierra Leone
Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, is pleased to announce that its exploration licence over the Tongo kimberlite dyke project has been renewed on a priority rights basis by the Ministry of Minerals Resources of Sierra Leone, as allowed for by the Mines and Minerals Act 2009.
Highlights:
·; Licence is host to four diamondiferous kimberlite dykes
·; Current inferred resource of 660,000 carats with a modelled diamond value of $248 per carat
·; Drilling and evaluation ongoing with the objective of a substantial increase in the resource
·; Discussions continue with the Ministry of Mines concerning the renewal of the Kono licence
Chief Executive Karl Smithson commented:
"The renewal of our Tongo exploration licence in line with the Mines and Minerals Act of 2009 enables the Company to pursue its objective of doubling the existing 660,000 carat resource through the ongoing drilling and evaluation programme. We are on track to deliver an upgraded resource statement for Tongo in the fourth quarter of this year.
"Tongo remains a priority project for Stellar Diamonds and, along with the Droujba kimberlite project in Guinea, we believe we are well placed to deliver value in the short term through increasing our inferred resource base of 3.1 million carats and moving these projects through to the pre-feasibility stage.
"We continue to engage with the Ministry of Minerals Resources regarding the Kono licence dispute. The two Kono licences were initially granted in 2005 and the Company has to date invested over $19m in exploration and development at Kono. We are committed to ensuring the Company's rights at Kono are honoured as allowed for by the Mines and Minerals Act 2009. We will keep shareholders informed of our activities as we progress."
About Stellar Diamonds plc
Stellar is a London (AIM: STEL) listed West African focussed diamond mining and exploration company which is advancing the Droujba kimberlite pipe in Guinea and the Tongo kimberlite dyke project in Sierra Leone, which combined have a JORC Compliant, inferred diamond resource of 3.1 million carats. The Company recently announced a dispute with the Ministry of Mines in Sierra Leone over its two Kono licences.
For further information please 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 7257 2930
Northland Capital Partners Limited
(Nominated Advisor and Broker)
Gavin Burnell, Edward Hutton Tel: +44 (0) 20 7796 8800
Daniel Stewart & Company plc
(Co-Broker)
Martin Lampshire, Antony Legge Tel: +44 (0) 20 7776 6550
Pelham Bell Pottinger
James MacFarlane, Joanna Boon Tel: +44 (0) 20 7861 3232