Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Stellar Diamonds unveils significant diamond upgrade for Tongo project

Tongo's diamond resource rises 35% to 1.477mln carats, while bulk sampling has led to a 37% increase in the grade to 165 carats per hundred tonnes.
Stellar Diamonds unveils significant diamond upgrade for Tongo project

---ADDS BROKER COMMENT---

Stellar Diamonds (LON:STEL) has unveiled a significant increase in the resource and the diamond grade of its Tongo kimberlite Dyke-1 project in eastern Sierra Leone.

The JORC compliant inferred resource rises 35% to 1.477mln carats, while bulk sampling has led to a 37% increase in the grade to 165 carats per hundred tonnes.

Meanwhile, the diamond price model now puts the value of stones unearthed at between US$145 and US$270 per carat and values the resource at up to US$290mln.

Broker Daniel Stewart said: “It is unquestionable that the increase in contained carats will have a positive impact upon Tongo’s economics.”

Chief executive Karl Smithson pointed out that further potential exists as the project also encompasses three parallel kimberlite dykes which form part of the Tongo dyke swarm. 

This includes the one-kilometre long Dyke-4, which has previously been bulk sampled and returned a diamond grade estimate of 110 carats per hundred tonnes and an estimated average diamond value of US$140 per carat.

Last month Stellar said trial mining of its Baoulé kimberlite pipe in Guinea had exceeded hopes with a number of large stones uncovered.

The first ore processed yielded 196 carats in total, or 17 carats per hundred tonnes – which was well ahead of the minimum expected grade of 13 carats per hundred tonnes.

Within that Stellar unearthed octahedrons of 5.5 carats and 5.1 carats alongside stones of 3.1, 1.9, 1.3 and 1.2 carats. Overall, half of the diamonds found were of gem quality.

View full STEL profile View Profile

Stellar Diamonds PLC Timeline

Related Articles

picture of diamonds
November 06 2017
Kareevlei is comfortably among the world’s top ten kimberlite mines on a dollar per carat basis
rubies
June 14 2017
Fosun said its 40.85p a share offer is a "compelling cash alternative"
Richland
April 03 2018
The strategic review aims to assess how the company can best leverage its position as the owner of one of the world's largest sapphire mines.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use