|
RAPAPORT... Afri-Can Marine Minerals Corporation completed its analysis of historical estimates from the Diamond Fields International Ltd. mining lease 111 off the coast of Namibia and estimated that 868,000 carats of diamonds remain. However, Afri-Can is not treating this report as a current mineral resource or mineral reserve source as it will be followed by a National Instrument 43-101 resource estimate report, which is in preparation and expected to be completed within 45 days.
Pierre Leveille, the president of Afri-Can, said, "We are very pleased with the conclusions of the report as it gets us to a level that will allow mining and provide regular development and value for our shareholders. The Diamond Fields portfolio of mining leases complements EPL 3403 and offers very good development potential. We feel that we are sitting in a strong project in a very solid industry."
The rough diamond estimate was derived from a resource estimate and a feasibility study prepared by MRDI and AGRA-Simons for Diamond Fields in 2000 and another resource estimate prepared by SRK Consulting on a small area of 111 called the Diaz prospect 1, in 2006. Mining license 111 has three geological features with Marshall Fork being the main deposit (148,000 carats remain) following intermittent production between 2001 and 2007, whereas the Diaz reef (479,000 carats) has only experienced some small-scale production, according to the report. The North Bay includes three deposits (241,000 carats) and has not been in production. The NI 43-101 report is expected to identify and classify these areas and define which will support immediate mining, according to Afri-Can.
Diamond Fields produced approximately 158,000 carats from its licensed areas between 2001 and 2007, mainly from Marshall Fork. Special stones recovered during that period included a gem-quality 17.42-carat stone, a rare 5.26-carat, light blue diamond, which sold for $10,457 per carat, and a 2.45-carat pink gem diamond that sold for $16,771 per carat. Production from Diaz amounted to 16,245 carats with an average size of 0.43 carats.
Afri-Can expects to charter vessels that would allow the resumption of mining in these targeted areas and fill-in sampling data from other areas of interest. Afri-Can signed a two-year option agreement with Diamond Fields in March and is required to spend $800,000 on exploration before the first year anniversary and an additional $2.5 million of exploration expenditures before the second year to fully acquire the licenses. The marine mining company's immediate goal is to focus on 111's existing resources in order to resume production in the shortest time frame possible.
The 111 license lies between five and 20 kilometers north of Luderitz, Namibia and covers 312 square kilometers with water depths ranging from 30 meters to 70 meters. The license comes up for renewal again on December 4, 2015.
|