JOHANNESBURG (miningweekly.com) – Aim-listed diamond-miner West African Diamonds (WAD) has formed a joint venture with a private Japanese/Sierra Leone company, Thunderball, to explore and, if justified, to develop a mine in and around the diamondiferous pipe 3 kimberlite in the Koidu area of Sierra Leone.

Pipe 3 was part of a 26-km² licence, which also includes kimberlite dykes containing high-grades of quality diamonds.

WAD said in a statement on Wednesday that Thunderball would immediately begin an intensive exploration of the licence area. The company would be operator and 80% shareholder in the venture, while WAD held the remaining 20%, and would be carried for all expenditure up to the start of production.

“This is a significant and very welcome development for WAD. The focus of WAD on developing our Bomboko mine, in Guinea, has meant less time and money have been devoted to evaluating the potential of the Pipe 3 kimberlite and surrounding areas in Sierra Leone,” said WAD chairperson John Teeling.

“Earlier work by WAD produced a grade of 20 ct/100 t of high-quality gemstones from Pipe 3, we believe the grade could be higher and the pipe could prove to be even bigger. I am delighted that Thunderball has plans for immediate exploration, evaluation and, if justified, development of a hard rock diamond mine on the property. We look forward to working with them and offering them every support.”

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.