(Adds broker comment from Daniel Stewart & Co)
Stellar Diamonds (LON:STEL) said that the latest results from its Droujba kimberlite pipe in Guinea confirmed that the hypabyssal kimberlite is significantly diamondiferous.
Two samples of kimberlite were recently submitted to the Saskatchewan Research Council laboratory in Canada for microdiamond analysis and results have now been received. The samples comprised 67.60 kg of hypabyssal kimberlite from the main pipe and 136.55 kg of hypabyssal kimberlite from the south east sub-surface intrusion which is located immediately adjacent to the main pipe.
The company reported that 462 diamonds were recovered from the total 204.15 kilograms (kg) of kimberlite drill core sample, including three commercial sized diamonds with the largest being 3.3 millimetres (mm) x 2.4 mm x 1.8 mm. A high percentage of diamonds were described as white, colourless and transparent.
The results are considered to be consistent with previously reported microdiamond results from the hypabyssal facies of the main pipe.
“Particularly encouraging is the continued presence of commercial sized stones from what are relatively small drill core samples....we now intend to add these results to those previously announced in order to model the likely macrodiamond grade of the kimberlite,” said chief executive of Stellar Diamonds Karl Smithson.
Droujba has recently been confirmed as three hectares, three times the size previously thought, prompting the company to embark on a deeper phase of drilling for resource definition purposes.
The results of these most recent analyses will be combined with those previously announced in order to forecast the macrodiamond grade of the Droujba kimberlite pipe.
“We shall shortly mobilise a processing plant to Droujba for a bulk sampling programme which will further increase our confidence in the diamond grade and values,” added Smithson.
A total of 1,000 diamonds have now been recovered from 495.41kg of kimberlite core (approximately two diamonds per kilogramme) with eight diamonds larger than 0.85 mm, which should provide sufficient material with which to undertake a first pass macrodiamond grade model, said Stellar.
Daniel Stewart & Co analyst Martin Potts said that Stellar is putting the recently raised money to good use at its various diamond exploration projects and, so far, the results have been positive.
"We anticipate more positive news in the near future from the ongoing bulk sampling programme at Tongo and the new drilling campaign at Droujba," he said.
Stellar announced last month it was raising £6.2 million from investors which will be used to develop the company’s kimberlite portfolio and for general working capital. A total of 77.5 million shares, the equivalent of 38.5 per cent of the company’s enlarged equity base, were placed at a price of 8 pence a share.