Modern Mining March 2018

DIAMOND MINING

Milestone for Tongo-Tonguma Stellar Diamonds, listed on London’s AIM, recently announced the completion of the Tribute Mining and Revenue Share Agreement with Octea Mining Limited in respect of the Tongo-Tonguma diamond project in Sierra Leone. The project has the potential to be the second largest kimberlite diamond mine in West Africa.

S tellar’s Chief Executive, Karl Smith- son, describes the agreement as a milestone as it secures the Tongo- Tonguma project for the planned long-term development programme. “We have already commenced the front end engineering design (FEED) programme and have signed a contract for 9 000 metres of mine development drilling that will enhance the geological control for the first two levels of mining,” he says. In another major step forward for the proj- ect, Stellar announced on 1 February that it was in advanced negotiations regarding a possible share offer for the entire issued and to be issued share capital of the company by ASX-listed Newfield Resources, which has a number of diamond exploration licences in Sierra Leone. “Discussions are ongoing with Newfield Resources regarding the indicative offer which, if successfully concluded, and sup- ported by our respective shareholders, will result in sufficient funding being made avail- able to bring the Tongo-Tonguma project into production according to the refined mine plan that will be generated by the FEED pro- gramme,” says Smithson.

carats per annum, with a weighted average modelled diamond value of US$229 per carat. Assets of the project include the 50 t/h pro- duction plant at Octea’s Koidu mine, which will be relocated and upgraded during the implementation of the project, and significant

The 50 t/h plant at Koidu. It will be broken down, relocated, upgraded and brought back into commis- sion for the project.

Drilling at Tongo Dyke-1, part of the Tongo-Tonguma project.

camp and office facilities. Photos courtesy of Stellar Diamonds

The Tongo-Tonguma kimberlite project is located in the world- famous diamond fields of eastern Sierra Leone. It combines Stellar’s Tongo project with Octea’s adja- cent Tonguma project. In terms of its agreement with Octea, Stellar remains owner of Tongo and will ‘contract mine’ Tonguma. An independently generated mine plan, based on over 66 000 m of drilling that has been completed to date, envisages the production – from an underground mining operation – of over 4 million carats, generating gross revenues of more than US$1,2 billion over a 21-year life of mine. Initial production at Tongo-Tonguma is scheduled to occur in the first year of develop- ment, building up to over 200 000

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