Tsodilo Resources Ltd (CVE:TSD) has released a new diamond value and grade model report for a parcel of stones from its BK16 kimberlite project in Botswana, which show the property could become a "minable" asset.
The stones are a 77.94-carat parcel of 502 commercial-size (greater than one millimeter) diamonds, recovered from large diameter drilling (LDD) from four kimberlite units in the Orapa kimberlite field, the Toronto-based explorer has said.
BIG PICTURE: Tsodilo Resources excited about high value diamond potential at project with one of the best addresses on the planet
BK 16 lies within the famous Orapa kimberlite cluster, one of the most prolific diamond-producing areas in the world.
Last month, Dr Paddy Lawless of PJL and Associates discovered that the size frequency model used resulted in an overly optimistic projection of grade values, and these results were presented in November last year.
Given the potential significance of this error, Tsodilo said it had immediately retained the services of Stephen Coward of Interlaced to review and develop new model grade and valuation figures based on the same raw BK16 data.
Coward has more than three decades' experience in the diamond industry, including more than 20 years with diamond giant De Beers.
His work has included work in project estimation, evaluation and value chain modeling across several commodities.
The main features of the new report are that the Size Frequency Distribution (SFD) study demonstrated the potential presence of large stones, indicating that around 2% to 5 % of the total carats may be greater than 10.8 carats (specials).
Tsodilo pointed out that this compared favorably to Lucara's Karowe Mine on AK06 of which some 5 % of the total carats produced are greater than 10.8 carats.
High-quality Type IIa diamonds
In addition, 3.8% of the diamonds tested were identified as high-quality Type IIa diamonds consisting predominantly of D color stones.
BK16 contains high-quality diamonds dominated by highly marketable shapes, the report showed.
The diamond values range from $281 per carat to $792 per carat, while the grade ranges from 4 cpht to 8 cpht (carats per hundred tonne).
"The company believes that the combination of grade, diamond value, and kimberlite value presented in this press release defined by Mr. Coward suggests that BK16 has significant potential to become a minable asset," Tsodilo said in Wednesday's statement.
In addition, to improve the confidence on both the grade and value a further phase of bulk sampling of BK16 would be required.
Tsodilo shares slid 3.17% to stand at $0.305..
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