Stellar Diamonds (LON:STEL) has kicked off an important drill programme that aims to double resources at the Tongo project in eastern Sierra Leone.
The Tongo resource currently stands at 660,000 carats at a grade of 120 carats per hundred tonne.
Stellar plans to drill 10 extension holes, for a total of 3,000 metres. This drilling will take place on the undrilled 0.6 kilometre section of the 2.5 kilometre long Dyke 1. And the results are expected towards the end of this year.
The programme will lay the foundations for a pre-feasibility study on the project.
"We are firmly focused on significantly expanding the resource at Tongo, which has shown exciting potential to date. This drilling and evaluation programme is designed to double Tongo's existing inferred diamond resource to over 1.2 million carats,” said chief executive Karl Smithson.
“The previously announced resource has a grade of 120cpht and a modelled diamond value of between $225 and $270 per carat, demonstrating the strength on Tongo within the Stellar portfolio."
Smithson adds: “At current grades and diamond values, the in-situ value of the Dyke 1 kimberlite is estimated by the company to be almost $300 per tonne, making it potentially one of the highest known value per tonne kimberlites globally.
“We expect the completion of drilling and upgrade of the resource statement during the fourth quarter of this year and I look forward to updating shareholders as we progress."
Following the completion of the drill programme and the subsequent feasibility study Stellar’s next step will be an underground mining trial.