The City broker Fox-Davies has applauded Paragon Diamonds’ (LON:PRG) move to hire companies that will help take the Lemphane kimberlite project in Lesotho to inferred resource status.
Paradigm Project Management is to carry out a first pass scoping study to design an operational model for the development of Lemphane.
Rodio Geotechnics has been contracted for an initial 2,000m deep delineation drilling programme to identify the structure at Lemphane down to 350m, while consultant AMEC undertake full geological and 3d modelling of the Lemphane kimberlite.
Restating his ‘buy’ advice and 30 pence a share price target, analyst Peter Rose said: “The study programme is anticipated to commence in February 2013 and continue for several months.
“The objective is to deliver a clear understanding of the internal structure of the kimberlite with regard to geology and grade distribution, which, on completion will be integrated with the geology mapped at surface as well as the surface bulk sampling results.
“The ultimate objective is a well constrained resource in three dimensions, yielding reliable tonnage, grade and ore value data.”