Name and Location
Tongo Dyke-1 diamond project, Sierra Leone.

Client
Stellar Diamonds.

Project Description
The Dyke-1 project has a Joint Ore Reserves Committee-compliant inferred resource of 1.1-million carats at 120 carats per hundred tonnes, with the resource remaining open at depth.

A scoping study completed on the project has confirmed the robust, positive economics of the project, justifying the advancement of the project to the definitive feasibility study (DFS) stage.

The scoping study focused on an estimated 682 000 ct of the Dyke-1 resource, to a depth of 300 m from surface over an initial 13-year life-of-mine. A decline access to provide early access to production ore is proposed, which will then be followed by the sinking of a shaft to 300 m to gain access to ore on levels about 40 m apart.

Stellar’s directors have used the base case model produced by the study and increased the life-of-mine to 17 years to achieve mining of about 1 051 000 ct of the existing inferred resource, which the company believes is achievable at Tongo.

Value
The scoping study estimates the life-of-mine capital requirement at $21.42-million, while the directors’ model estimates capital costs at $30.27-million.

Duration
Not stated.

Latest Developments
Bulk sampling at Stellar’s Tongo project has started as part of the planned feasibility study of the 1.1-million carat resource at Dyke-1.

Simultaneously, Stellar is in discussions with several independent consulting groups, one of which will be selected to oversee the DFS.

The company also plans to explore and assess other kimberlites within the Tongo licence area to further enhance the diamond resource base and project value. Previously the sampling of Dyke-4 returned a grade and value of 110 cpht and $140/ct respectively.

Stellar intends to drill, blast and process about 2 000 t of kimberlite from the previous bulk sample site on Dyke-1. Previously, an estimated 1 150 ct have been yielded from bulk sampling by the company and on which the current diamond valuation is modelled. A larger parcel of diamonds is recommended for the feasibility study to provide further confidence in this important parameter.

An experienced South African miner, with the necessary blasting qualifications, has been recruited and is on site at Tongo.

The blasted material will be extracted from the dyke and hauled 600 m to the camp site where it will be processed through the company’s 5 t/h dense-medium separation plant, under observation from government representatives. The first blasting is expected to start in early October.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Stellar Diamonds, tel +44 20 7010 7686 or fax +44 20 7010 7699.