Adds broker comments....
Stellar Diamonds (LON:STEL) has hired a mining consultant in preparation for maiden resource estimates at its two flagship projects.
CAE Mining of South Africa will assess the firm's work to date which will culminate in the preparation of maiden resource statements and preliminary economic scoping studies for the Droujba and Tongo kimberlite projects in Guinea and Sierra Leone.
These resource statements and studies are expected in the first quarter of next year, it said.
Chief executive of the firm Karl Smithson said he was pleased to have appointed the technical consultant CAE, with Matthew Field as the competent person.
"In Dr Field, Stellar has retained a highly experienced kimberlite resource geologist who has worked or consulted for many major and junior diamond companies," he said.
Meanwhile, the company also reported that resource definition drilling was underway at the Droujba kimberlite pipe with over 6,000 metres so far completed.
Resource drilling at the Tongo dyke project is expected to begin shortly, it added..
Stellar is a diamond mining and exploration company focused on West Africa. It owns a 100 percent interest in four high-grade kimberlite projects.
In Guinea, resource definition drilling is continuing on the diamondiferous Droujba kimberlite pipe and bulk sampling is underway on the high grade Bouro kimberlite dyke which is adjacent to the company's Mandala alluvial diamond mine.
In Sierra Leone at Tongo a bulk sampling programme is ongoing on the high grade Dyke 1 and bulk sampling is planned on the Lion 5 dyke at the Kono kimberlite project.
Analyst Andrew McGeary, of broker Northland Capital, welcomed today's news and said: "The move to establish a tangible valuation milestone, outlining initial code complaint resources within the originally mooted timescale, is very positive.
"The company is well funded towards achieving these targets and recent results from Tongo were very encouraging in terms of grade and diamond value, while modelling of Droujba (which is a potentially far simpler drill target) was also encouraging suggesting a potentially more extensive resource than originally envisaged."
Last month, the firm announced that the first parcel of diamonds exported from the Tongo kimberlite dyke Project in Sierra Leone, consisting of 639 carats, was valued at an average price of US$191 per carat.
The average grade of the kimberlite from the bulk sampling to date is over 109 carats per hundred tonnes which suggests a potential in-situ value of the kimberlite ore body of US$209 per tonne, which would make Tongo one of the highest value kimberlites globally on a per tonne of rock basis.
Stellar Diamond shares were up 6.82 percent this afternoon, trading at 5.88 pence.