AMN - GUINEA: Baoulé recovers 11,808 carats

Stellar Diamonds updates results from a trial mining exercise at its 75%-owned, 5 hectare Baoulé kimberlite pipe in Guinea.

Highlights:

- 100,000 tonnes bulk sample completed

- 11,808 ct recovered at an average grade of 11.4 ct/100 tonnes at a +1.25 mm cutoff

- Grade of the eastern lobe higher than western lobe at 13.3 ct/100 tonne versus 9.8 ct/100 tonnes respectively

More than 8400 ct sold to date in three diamond sales realising more than $1 million in revenues (Gem diamonds of high quality achieving prices of up to $6800/ct

- Sale of more than 3100 carats planned later this month

- Diamond value and grade modelling under way as part of establishing the diamond resource targeting approx. 3 Mct.

Stellar CEO Karl Smithson says: “The trial mining exercise at Baoulé has been successfully completed, ahead of schedule, through the processing of more than100,000 tonnes of kimberlite from the eastern and western lobes of the 5 ha pipe. A total of 929 stones greater than 1 ct have been yielded including numerous high value gem and fancy coloured (yellow) diamonds.

Additionally one 55 ct stone has been recovered, which confirms the company’s belief that the Baoulé pipe is a source of large diamonds that are renowned in the Aredor area of Guinea. The results show a clear difference in grade and diamond quality between the eastern and western lobes, with the volumetrically larger eastern lobe being of higher grade and quality. With the higher grade area identified, we intend to sell a further 3,188 ct later in June, with these diamonds all arising from the western lobe.

This planned sale will add to $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 remaining approximately 3 million carats contained within the Baoulé pipe. This will then allow us to formulate the next development steps for the project.”

The geology of the pipe is complicated in parts with what seem to be multiple intrusions and brecciated contact zones in both lobes, with the western lobe in particular hosting a number of late stage and cross-cutting kimberlite dykes. For the purposes of evaluation it was not possible to separate and process separately each kimberlite lithology. However, the east and west lobes were sampled and processed separately, which did confirm a difference in grade between the two. Some 46,561 tonnes were processed from the eastern lobe whereas some 56,555 tonnes were processed from the western lobe.

A total of 11,808 ct have been recovered to date from Baoulé at a +1.25 mm cut off, giving an average grade of 11.4 ct/100 tonne. However, it is clear that the eastern lobe has a higher grade at 13.3 ct/100 tonne than the western lobe at 9.8 ct/100 tonne. This could be a consequence of different kimberlite types or processing efficiencies, since it was noted that the western lobe did yield a fewer percentage of -7 sieve stones (<1.83 mm) compared to the eastern lobe

A total of 929 stones greater than 1 ct have been yielded including numerous high value gem and fancy coloured (yellow) diamonds of up to 12 ct in size.

A total of three diamond sales have been held to date. Some 8400 ct have been sold realising $1 million in revenues. Diamond values have varied widely from $91 to $156/ct depending on the market sentiment at the time of the sale and the diamond mix of the parcels sold. However, it is notable that a number of gem and fancy coloured diamonds commanded premiums and values of up to $6800/ct, confirming the presence of high value stones in the Baoulé pipe.

Stellar is an AIM quoted, West African focused diamond company with projects at the trial mining and mine development stages in Guinea and Sierra Leone.

www.stellar-diamonds.com

News courtesy of International Mining