JOHANNESBURG (miningweekly.com) – As a result of a steep drop in diamond prices, LSE-listed miner Target Resources has suspended its diamond-mining activities in Sierra Leone and would instead focus its attention on its gold projects.
The company said on Wednesday that diamond prices on the international market had now halved from what they were in early 2008 and that it would, subsequently, shut down its operations to prevent further losses.
Its running costs had been reduced accordingly, but equipment had been secured and would be maintained to ensure that it was ready for start-up when market conditions improved, it said in a statement to shareholders.
The company planned to start producing gold at a 520-km2 project area, situated near Yele, in the Tonkolili district, in Sierra Leone.
Target’s initial sampling in the area had shown encouraging results, prompting it to start setting up the infrastructure for a gold operation, it stated.
An operation to recover gold from the slimes discharged during diamond production in Kono, in Sierra Leone, would also immediately be set up.
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