JOHANNESBURG (miningweekly.com) – Aim-listed Obtala Resources has restarted mining at the Konoma alluvial diamond operation, in Sierra Leone, which it acquired along with other exploration licences from African Minerals in a £4,3-million all-share deal, in January.
This formed part of the development company’s plans to become a revenue generating business before the second quarter of this year.
Obtala had completed a review and maintenance programme of the dense-media separation (DMS) plant, as well as earthmoving equipment, since acquiring Konoma.
“The DMS plant and the mining fleet are now operational, a distribution contract [is] in place and we will start to recover stones shortly. The timing of this acquisition is fortuitous, as the prices of rough stones continue to rise on international markets,” Obtala chairperson Frank Scolaro commented in a statement to shareholders on Monday.
Site infrastructure was being repaired and upgraded, while key senior staff had been appointed, the company noted.
Mining was being conducted at two separate locations, Bolima and Bakidu, while the exploration company had appointed two local prospecting teams to evaluate additional diamondiferous gravel deposits ahead of bringing in a mechanised mining fleet.
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