JOHANNESBURG (miningweekly.com) – Diamond and gold producer West African Diamonds (WAD) on Tuesday stated that production would start at its Bomboko alluvial diamond mine, in Guinea, in March.

WAD chairperson John Teeling noted that all necessary equipment was already on site, and was being assembled.

The Bomboko project spans nine alluvial diamond licenses adjacent to Guinea’s only diamond mine, Aredor.

“A 6 000 t/m operation is currently being brought on stream, and an expansion to 18 000 t/m is already in the pipeline,” Teeling said in the company’s interim report for the period ended October.

Most of the equipment on site at Bomboko came from the closed Plant 11 tailings project in neighbouring Sierra Leone. In mid-2008, WAD announced plans to downscale activities in that country, citing a  deteriorating security situation disappointing results from Plant 11.

Meanwhile, Teeling said that a bulk-sampling programme was in an advanced stage at Droujba, following a detailed ground geophysical survey over the cluster of kimberlite intrusives.

“A mobile 5 t/h dense media separator plant has been moved to site, and camp infrastructure has been developed. To supplement the bulk sampling programme, stab drilling will take place over the adjacent geophysical exploration target, to determine whether these are kimberlitic or not.”

SIERRA LEONE PROPERTIES

Teeling noted that earlier work at the Kono area, in Sierra Leone, mapped 14 km of kimberlite dykes, and produced a grade of almost 20 carats for every 100 t. The diamonds were worth about $200/ct, and produced from the small pipe 3 kimberlite.

“There are some very early-stage expressions of interest in development possibilities for these properties. In the meantime, a programme of outline drilling is planned.”

Teeling added that in prospecting for diamonds at the company’s Nimini Hills concession, WAD had found gold traces. “Follow up sampling confirmed these indications. We are currently undertaking an extensive regional sampling exercise. Initial indications are positive.”

WAD noted that the current investment climate was very difficult, and the downward spiral in demand was likely to lead to pessimistic beliefs.

“However, diamonds are not dead. A diamond is not only an economic purchase. The current hiatus in sales and prices will pass, and the fundamental shortage in diamond supply will once again fuel demand and prices,” said Teeling.

During the period under review, the London-listed WAD reported an operating loss of £113 000, with a total loss for the period adding up to £124 0000.

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