News Bureau

 
 
April 29, 2017

Second largest diamond mine

Mine life, to producing over 4.5 million carats of diamonds


Stellar Diamonds, the London quoted diamond exploration and Development Company focused on West Africa, announces that it has signed a legally binding conditional Tribute Mining Agreement and Revenue Share Agreement with Octea Mining Limited in respect of the Tongo-Tonguma kimberlite diamond project in eastern Sierra Leone.

According to the Agreements and the Project, Project hosts one of the highest value kimberlite ore bodies in Africa on a dollar per tonne basis and would create the second largest kimberlite diamond mine in West Africa.

Estimated 21 year mine life, producing over 4.5 million carats with estimated revenues over US$1.5 billion1

2,200,000 carats per annum at a weighted average value of US$229 per carat, with full production estimated approximately three years after development commences. Chief Executive Karl Smithson commented:

“We are delighted to have signed these agreements with Octea which, subject to completion, will allow Stellar to build a single mine for the simultaneous commercial production from the contiguous Tongo (Stellar) and Tonguma (Octea) kimberlite deposits. The combined project has an initial 4.5 million carat resource which, due to the high grade (100cpht to 260cpht at +1.18mm) and high quality diamonds (US$209/ct to US$310/ct), is considered to be one of the highest value kimberlite ore bodies in Africa on a dollar per tonne basis. The 21 year mine plan with a consistent output of over 200,000 carats per year at full production would quantify this development as the second largest kimberlite diamond mine in West Africa. The project also has a very modest two year capital requirement of just under US$32 million to get into full scale commercial production.

Stellar has the strong support of all main stakeholder groups in Sierra Leone for this mine development, which would have a very positive impact in terms of employment, local infrastructure development and future taxation revenue for the country.”

 

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