Newfield Resources Ltd (ASX:NWF) has sold its first diamonds from its Tongo Mine in Sierra Leone with the sale yielding US$1.44 million (A$2.05 million) at an average price of US$269 per carat.
A tender process saw 5,330 carats sold with the sale managed by the largest independent diamond and gemstone tender and auction house, the Bonas Group.
There was strong demand for the diamonds across 15 lots offered and further sales are planned during the year as production continues at the mine.
“We are delighted to announce the results of our recent diamond tender from the Tongo Diamond Mine," Newfield executive director Karl Smithson said.
"There was strong demand across the board for our product, which comprised of predominantly quality gem diamonds. This demand for high-quality diamonds is reflected in the high average price of US$269 per carat achieved,”
“This high diamond value realised, coupled with the high mining grades of 2.7 carats per tonne previously reported, is very encouraging and demonstrates the potential of the Tongo Mine to be a high grade and high-value diamond mine.
"The production from the Tongo Mine continues to deliver encouraging results and we anticipate being able to offer further goods to the market for sale as 2022 progresses.”
About the sale
Diamonds ranged from single stones of up to 9 carats to -7 DTC sieve run-of-mine production. A total of 100 companies viewed the goods with 411 bids.
All lots were sold and generated US$1,435,405 in gross revenue, at an average price of US$269 per carat.
The parcel sold included 203 carats of goods previously mined (but not sold) from a now discontinued alluvial operation in Sierra Leone.
Excluding these goods, a total of 5,128 carats were sold from the Tongo Diamond Mine, realising US$1,343,889 at an average price of US$262 per carat. This average price per carat comfortably exceeds the +1.18mm modelled diamond price of US$222 per carat for the Tongo Mine that Newfield previously reported.