Modern Mining June 2016

WEST AFRICA

Panorama of the Baoulé site showing the treatment plant (right) and workshop/ garage (left) and the Tourou mountains in the background. US$1 million in revenues. Diamond values have varied widely from US$91 to US$156 per carat, depending on the market senti- ment at the time of the sale and the diamond mix of the parcels sold. However, says Stellar, it is notable that a number of gem and fancy coloured diamonds commanded premiums and val- ues of up to US$6 800 per carat, confirming the presence of high value stones in the Baoulé pipe. “The results show a clear difference in grade and diamond quality between the eastern and western lobes, with the volu- metrically larger eastern lobe being of higher grade and quality,” comments Stellar’s Chief Executive, Karl Smithson. “With the higher grade area identified, we intend to sell a further 3 188 carats later in June, with these diamonds all arising from the western lobe. This planned sale will add to the US$1 million generated to-date from diamonds sold, which has contributed significantly to the costs of the exercise. We will then complete the necessary diamond grade and value modelling as part of the resource estimation exercise, with our resource target remain- ing approximately 3 million carats contained within the Baoulé pipe. This will then allow us to formulate the next development steps for the project.” Apart from the Baoulé project, Stellar also holds the Tongo project in eastern Sierra Leone. Since 2007 Stellar has carried out systematic and extensive exploration programmes which have culminated in the establishment of a JORC-compliant diamond resource of just over 1,45 million carats. A recently completed Preliminary Economic Assessment (PEA) has defined robust eco- nomics for an 18-year life of mine on the Dyke-1 kimberlite, with significant opportunity to enhance both life of mine and project economics through either deeper mining and potentially bring- ing in any of the three other high grade kimberlites (Dykes 2, 3 and 4) on the property into the mine life. Stellar reported recently that it had been verbally informed that the Minerals Advisory Board (MAB) had approved the application for a mining licence over the project. Progression of the licensing process remains subject to the National Minerals Agency (NMA), the licensing body of the Ministry of Mines, for- mally writing to Stellar to inform it of the decision and drawing up a licence agreement to be forwarded to the Minister of Mines for approval. Thereafter the fiscal terms of the mining licence will be negotiated between Stellar and the Government of Sierra Leone and the resulting mining concession agreement will then require ratification through Parliament. Photos courtesy of Stellar Diamonds

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