--adds chief executive comments, updates share price, includes brokers comment--
Stellar Diamonds (LON:STEL) will auction off a second batch of stones from trial mining at its Baoule site in Guinea.
Sales of up to 4,439 carats will take place in Dubai and Antwerp this month and will include gem quality stones up to 12.6 carats in size.
Last month, Stellar sold 733 gem quality carats from Baoulé at an average value of US$266 per carat.
One 5.5 cpht diamond sold for more than US$25,000.
This second diamond sale is part of the company's anticipated regular sales process from the trial mining of Baoulé.
The goods will be available to view in the offices of eDiamond in Dubai from the 10 to 13 May and in Antwerp from the 18 to 25 May with the auction expected to close at the end of this month.
Stellar’s chief executive Karl Smithson said the 4,439 carats are a mixture of new and withheld goods.
“We’re selling almost 3000 carats of new product. The remainder of the diamonds were withheld and not sold previously due to weak market conditions at the time.”
Overall, Stellar plans to produce a total of 15,000 carats from Baoulé in order to establish the diamond grade, value and presence of large diamonds in the kimberlite pipe.
Latest mining has seen diamonds of between 12.6 carat and 10.0 carats, the company said.
So far a total of 5,087 carats has been unearthed at the mine at an average grade of 13.5 cpht.
“From the mine in Guinea, the second sale boosts the Baoulé brand within the industry, with Stellar Diamonds establishing itself as a supplier of regular, high quality diamonds to the markets of the world,” said the broker Daniel Stewart.
Shares were 15% higher to 0.8p.