News blog

Stellar Diamonds

• BY: Andrew Hore |
• POSTED: 15/07/2014 |

Further re-processing of bulk sample tailings at the Tongo Dyke 1 kimberlite in Sierra Leone means that Stellar Diamonds has increased the recovery rate taking the average undiluted in-situ diamond grade to 155 carats per hundred tonnes (cpht).

A definitive feasibility study is on course to be published in 2015 and the increase in the calculated grade from 120 cpht should improve the viability of the mine.

The JORC compliant inferred resource is just over 1m carats but if the grade can be maintained at the higher level the figure would be 1.39 cpht. The estimated NPV, based on a 13 year mining life, is $53.1m.

In May, BlackRock increased its stake to 5.06%. This was after Stellar raised £1.85m at 1.25p a share. At 1.38p a share, Stellar is valued at £9.74m.

Stellar is also earning a 75% stake in the Baoulie in the Aredor area of Guinea.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJuly2014_58.pdf