Newfield Resources Ltd (ASX:NWF) has raised $24,974,879 via a rights issue of shares at 35 cents per new share to prioritise the continued development of its Tongo Diamond Project in Sierra Leone into production.
Newfield has offered eligible shareholders and new investors the shortfall to the rights issue at the same issue price of 35 cents per new share.
Newfield executive director Karl Smithson said that “It is exciting as the shortfall is now open at $0.35 being in the money with the share price now passing $0.45.”
Based on the reserves-only model from the Front End Engineering and Design (FEED) study completed in May 2019, the Tongo Diamond Project is expected to deliver:
- 1.1 million carats initial ore reserve
- Initial eight-year life with peak annual diamond production of >250,000 carats (ct) forecast in Year 5
- US$222/ct average realised price and operating costs of US$115/ct (real)
During the September 2021 quarter, underground development of the return airway (RAW) on the Kundu kimberlite at the Tongo Diamond Project continued.
Kimberlite continued to be extracted from Segment A RAW and hauled to the 5 tonnes per hour (tph) plant for processing.
Kundu decline; electrified and ventilated.
The kimberlite remains about 25-30 centimetres in width and is comprised of fresh, macrocrystic kimberlite with a smooth contact with the wall rock granite which results in a relatively clean breakaway of the ore from the country-rock.
Processing of the kimberlite was conducted during the quarter with some 379 carats being yielded.
The quality of the stones is good and includes a representative proportion of gemstones in line with historical sampling.
Diamonds recovered from Kundu.
Construction of 25tph processing plant
Earthworks and civil construction for the production 25 tph processing plant progressed during the September quarter.
In addition, construction of a security building commenced. This security building is adjacent to the panned final recovery building from where the diamonds will be recovered using Debtech X-Ray machines.
It is expected that the plant, final recovery and security building construction will be completed during Q1-22, in time for the anticipated increase in production from the underground mine.
Mine site and infrastructure.