Stellar Diamonds (LON:STEL) has had two diamond exploration licences in Guinea renewed for two years to follow the recent renewal of the Droujba licence, which is adjacent.
The licences cover an area of 118sq km and are considered prospective for discovery of diamondiferous kimberlites.
Karl Smithson, chief executive, said: "These two exploration licences are located adjacent to the company's Droujba kimberlite pipe and Katcha kimberlite dyke which have a current 3 million carat (JORC inferred) diamond resource.
“A number of unresolved diamond and indicator mineral anomalies are located in these licence areas, which indicates the potential for as yet undiscovered diamondiferous kimberlites.
"While our short term objective is to complete the economic scoping studies on the Droujba diamond resource we shall also look to test the significant exploration potential of these two licences."
The two licences are held by subsidiary company Friendship Diamonds and are located to the immediate west of the diamondiferous Droujba kimberlite pipe and Katcha dyke.
This is the second renewal for the licences and a further 50% area has been relinquished that is not considered to be prospective, reducing the combined licence area.
A number of kimberlite dykes have been identified in this area; however the anomalies identified suggest the presence of further kimberlites, including the western extension of the five kilometre long Katcha dyke.