Stellar Diamonds (AIM:STEL) has indentified what it describes as a potentially significant extension to its Droujba kimberlite pipe in south-east Guinea.
The discovery found the deepest intersection was 126 metres from the surface. It is the result of a seven-hole campaign that has drilled 1,364 metres of total 3,000 metres so far.
One hole hit kimberlite between 56m and 194m, giving a down hole intersection of 138m and true intersection width of 90m.
This potentially represents a “blind blow or lobe” that could significantly increase the sub-surface potential of the pipe, Stellar told investors.
Samples have been submitted for petrographic analysis. Four kimberlite samples have been assigned a “high interest rating with respect to diamond potential”, the firm added.
Two separate samples have been dispatched to the Saskatchewan Research Council laboratory in Canada for microdiamond analysis with the results expected by the end of January.
They comprise 197 kilograms of hypabyssal facies and 94 kilograms of kimberlite breccia.
Chief executive Karl Smithson said: "The drilling programme at Droujba is progressing well with a potentially significant extension intersected immediately to the south west of the known pipe which is coincident with a geophysical target.
“This could represent a blind lobe to the pipe at depth. Further drilling around the pipe and this extension will enable us to generate an initial geological model of the ore body upon completion of the programme.
"With this exciting development, Droujba continues to demonstrate considerable potential as we progress with our planned drill programme. Along with Tongo, Droujba will remain a key focus for the Company as we look to accelerate development of our kimberlite projects in West Africa.
"I look forward to updating shareholders on the continued progress at Droujba in Guinea.
“I also anticipate being in a position to announce the grade results from the first bulk sample at the Tongo kimberlite project in Sierra Leone in the near future as the plant construction is almost complete."