Paragon Diamonds (LON:PRG) is eyeing an increase in the resource at its flagship Lemphane kimberlite project in Lesotho after the results of its latest drilling programme.
The project currently has a tonnage estimate of 48Mt of kimberlite, the rock that contains diamonds.
“Two outcomes from this latest drilling programme are that an improvement in the overall kimberlite tonnage to a given depth can be expected, and a reduction in the overall waste:ore (stripping) ratio to a given depth is anticipated, compared to the 2012 Scoping Study,” it said.
Stephen Grimmer, managing director, said the results were “entirely positive” and better than previously anticipated by the company.
“I am particularly pleased that they show the kimberlite at Lemphane is larger at depth than previously assumed.
“I look forward to seeing these results being incorporated into the planned pre-feasibility study to be conducted in tandem with Stage 1 production, which, subject to financing, is planned to commence in Q1 2015.”
As well as defining the boundary between the higher grade southern portion and lower grade north, the drilling demonstrated the continuation of the higher grade satellite pipe to at least 150 metres (m) in depth said Paragon.
The two holes also showed that the eastern contact of the kimberlite is vertical to at least 150m down and has the potential to host a higher tonnage than previously believed.
Paragon intends to drill a final series of eight holes to confirm the dimensions of the kimberlite at between 200-300m depth below surface.
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