AMN - SIERRA LEONE: Tongo mining licence approved

Stellar Diamonds, the London listed diamond development company focused on West Africa, has had its mining licence approved over its 100% owned Tongo project in Sierra Leone.

Progression of the licensing process remains subject to the National Minerals Agency (NMA), the licensing body of the Ministry of Mines, formally 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.

In the meantime, Stellar is engaging with the Environmental Protection Agency with regards to the required environmental licence, which must also be issued before mining can commence.

A positive preliminary economic assessment demonstrated an NPV of $53 million and IRR of 31% (pre-tax) through mining almost 1 Mct over an 18 year life of mine. The starting capital for the first four years is estimated to be $24.8 million which will enable both surface and underground mining to be established. The Tongo mine is expected to generate robust cash flows on a long-term and sustainable basis.

http://stellar-diamonds.com

News courtesy of International Mining