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Stellar Diamonds plc is a London listed (AIM:STEL) diamond exploration and development company that is focused on the West African countries of Sierra Leone and Guinea. Stellar has an advanced portfolio of high grade kimberlites that are currently subject to resource definition thorugh drilling, bulk sampling and trial mining. Initial resource statements are expected in early 2011 from Tongo and Droujba. In addition, Stellar has also mined and sold over 125,000 carats of diamonds from two alluvial operations in Guinea.
Stellar Diamonds on track for maiden resource statements
Stellar Diamonds (LON:STEL) remains on track to produce maiden resource statements for its kimberlite projects at Droujba in Guinea and Tongo in Sierra Leone this quarter.
Resource drilling has completed at Droujba and bulk sampling is now underway, while both drilling and bulk sampling has finished at Tongo.
The sampling at Tongo’s Dyke 1 revealed 1,150 carats at a final in-situ calculated grade (+1mm) of 121 carats per hundred tonnes and a diamond value of $185/ct on the basis of two aggregated diamond exports made in the report period.
Stellar added that the results were “highly encouraging,” adding that in-situ value of the Dyke 1 kimberlite is therefore calculated to be $224 per tonne, which is considered to be one of the highest value for kimberlites worldwide.
Chief executive Karl Smithson said that the planned listing of the Koidu diamond mine on the Hong Kong stock market would also raise awareness of its own Kono project in Sierra Leone as it lies adjacent to Kono.
“Excellent progress” had been made on the resource statements over the last six months, he added, with all key milestones achieved not only for the six month period being reported but also for the financial year as a whole.
Stellar generated a loss of US$1.95 million in the six months to December and ended the half-year with US$1 million of cash and US$0.6 million worth of diamonds in stock.
The group added it does not expect rough prices in 2012 to repeat the highs and then lows of 2011, but rather remain more stable.
“Diamond prices are likely to reflect the balance between short term risk aversion on the demand side and, in the backdrop of limited production increases, the continued strong growth in jewellery demand from Asia that should result in rough diamond price appreciation.”
