https://www.miningweekly.com

Stellar, Octea sign tribute mining agreement over Sierra Leone project

28th April 2017

By: Anine Kilian

Contributing Editor Online

     

Font size: - +

JOHANNESBURG (miningweekly.com) – Diamond development company Stellar Diamonds has signed a legally binding conditional tribute mining agreement and revenue share agreement with Octea Mining in respect of the combined Tongo-Tonguma kimberlite diamond project, in eastern Sierra Leone.

“These agreements with Octea . . . will allow Stellar to build a single mine for the simultaneous commercial production from the contiguous Tongo and Tonguma kimberlite deposits,” Stellar CEO Karl Smithson said on Friday.

He added that the combined project has an initial 4.5-million-carat resource which, owing to the high grade and high-quality diamonds, is one of the highest-value kimberlite orebodies in Africa on a dollar per tonne basis.

The 21-year mine plan, with estimated output of over 200 000 ct/y at full production, will quantify this development as the second-largest kimberlite diamond mine in West Africa.

The project will require capital investment of just under $32-million over two years to reach full-scale commercial production.
The first elements of mine development are planned to start within three months of completion of the mining agreement.
 

Octea will continue to hold the Tonguma mining licence through its subsidiary company Tonguma and Stellar will continue to own its adjacent Tongo licence and subsidiary company Sierra Diamonds.

Stellar will also own certain infrastructure and capital items procured for and used at the mine development on both licences.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION