JOHANNESBURG (miningweekly.com) – Trial mining at Aim-listed Stellar Diamonds’ 75% owned, five-hectare Baoulé kimberlite pipe in Guinea has been completed ahead of schedule through the processing of over 100 000 t of kimberlite from the eastern and western lobes of the pipe.
Stellar announced on Monday that 11 000 ct had been recovered from Baoulé at a +1.25mm cutoff, giving an average grade of 11.4 carats per hundred tons while 929 stones greater than one carat had been yielded, including numerous high-value gem and yellow diamonds.
Additionally, one 55 ct stone was recovered, which confirmed the company’s belief that the Baoulé pipe was a source of large diamonds.
“The results show a clear difference in grade and diamond quality between the eastern and western lobes, with the volumetrically larger eastern lobe being of a higher grade and quality,” said CEO Karl Smithson.
He added that, with the higher-grade area identified, the company intended to sell a further 3 188 ct in June, which would add $1-million generated to date from diamonds sold.
“We will then complete the necessary diamond grade and value modelling as part of the resource estimation exercise, with our resource target remaining approximately 3-million carats contained within the Baoulé pipe. This will then allow us to formulate the next development steps for the project.”
Trial mining evaluation of the Baoulé kimberlite pipe was recently completed through the mining, extraction and processing of over 100 000 dry tons of kimberlite.
Meanwhile, Stellar Diamonds announced that it had entered into an unsecured loan facility agreement with existing shareholders Altus Strategies and Deutsche Balaton to provide £465 000 in funding to the company in aggregate, of which £325 000 would be provided by Altus and £140 000 by Deutsche Balaton.
The proceeds of the loan would be used for working capital purposes as the company advanced its mining licence application for its Tongo kimberlite project in Sierra Leone, and established a maiden resource at its Baoulé kimberlite project, in Guinea.
The loan was repayable six months following the date of the agreement, at a rate of 20% a year, payable in arrears.