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 1.074-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 its advancement 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 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
Stellar has decided to prioritise the Tongo project and will accelerate it through the feasibility study stage and, hopefully, towards a production decision in the latter part of 2014.

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.