AMN - SIERRA LEONE: Tongo Dyke-1 gets environment approval

Stellar Diamonds, the London-listed diamond development company focused on West Africa, has received a letter of approval for its Environmental, Social and Health Impact Assessment (ESHIA) from the Environmental Protection Agency (EPA) in relation to the mining licence application for its 100% owned Tongo Dyke-1 project in Sierra Leone.

Chief Executive Karl Smithson says: “The approval of our ESHIA marks another key step in the process of obtaining the mining and environmental licences that will allow for the development of the 1.45 Mct diamond resource at Tongo Dyke-1, one of four kimberlite dykes at our Tongo project. We will now schedule a meeting with the EPA to discuss and agree on the fee relating to the issuing of the environmental licence.

“We have also recently successfully concluded the surface rental agreement with the landowners and other key stakeholders and this will now be incorporated in to a legally binding agreement.

“I look forward to updating in due course on progress relating to the mining licence application which awaits consideration by the Minerals Advisory Board as we continue to progress the development of this high-grade, high-value diamond resource.”

Stellar has completed an independent Preliminary Economic Assessment on the Tongo project which delivered robust economics for one of the four kimberlites on the property.

The Preliminary Economic Assessment was based on the lower grade model of 120 ct/100 tonnes with a diamond value of $270/ct and gave a pre-tax NPV(10) of $53 million over an 18 year life of mine.

Starting capital to establish the surface and underground mining operations is estimated to be $24.8 million, with first revenues expected from the mine towards the end of the first year from surface mining. Surface mining is estimated yield 117,800 ct, predominantly in years two to four and generate an expected $28.5 million. Underground mining extends from years 3 to 18 and is targeted to yield a further 838,000 ct with revenues of $358 million.

http://stellar-diamonds.com

News courtesy of International Mining