Stellar Diamonds’ (LON:STEL) annual results confirmed the exploration group is making progress on all fronts.
They revealed the group hopes to make a production decision on the 1.1mln carat Tongo Dyke Project in Sierra Leone by the fourth quarter.
At that point it also expects to have defined a 3mln carat resource at Baoulé in Guinea.
Stellar also said it is negotiating to resolve the dispute over its Kono licences in Sierra Leone and added the dialogue continues.
“We continue to pursue diplomatic and legal remedies in order to recover the licences which we believe were wrongly revoked by the Ministry of Mines,” the company added.
“Our position has been supported by both local and international legal opinions and we remain hopeful that a negotiated settlement should recover some value for all stakeholders in the project.”
Kono yielded 4,000 carats of high quality diamonds during underground trial mining on two diamond bearing kimberlites, so reclaiming the asset would give a huge boost to the company.
Until then, the plan is simple: produce a definitive feasibility study for the Tongo Project in Sierra Leone, while compiling a maiden resource for Baoule in Guinea.
In doing this it hopes to boost its resource base to 7.5mlm carats, which at current diamond prices adds up to a contained value of just over US$1bn.
Chief Executive Karl Smithson said: "We are delighted by the progress made at our flagship high grade Tongo project over the period which shows robust economics justifying the board's decision to advance the project to the feasibility study phase.
“The addition of the Baoulé kimberlite to our portfolio is an exciting development as the diamondiferous pipe offers significant potential in the form of a large diamond resource with high diamond values.
“Having already delivered on several significant milestones during 2013, we look forward to the year ahead as we aim to further unlock the potential and advance towards our goal of becoming a diamond producer in West Africa."
At the year-end Stellar had cash of £640,000 and in common with most firms at this formative stage of development posted a loss. The deficit was just over £1.5mln.