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Kimberley Diamonds Purchases Argyle Smoke Creek Project

Feb 17, 2014 5:54 PM   By Jeff Miller
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RAPAPORT... Kimberley Diamonds Limited acquired the Argyle Smoke Creek alluvial diamond project, which includes 22 prospecting licenses and is located in the Kimberley region of Western Australia,  from Venus Metals Corporation Limited for  $250,000 in cash and will issue 625,000 ordinary shares at $1.20 per share to Venus Metals for a 100 percent interest.

Alex Alexander, the executive chairman of Kimberley Diamonds, said,  “The completion of this acquisition provides a second potential source of rough fancy colored diamonds for Kimberley, alongside our flagship Ellendale diamond mine, which supplies approximately half of the world’s fancy yellow diamonds. In addition to this acquisition, we are making positive progress on the completion steps for the acquisition of Mantle Diamonds and the Lerala diamond mine, which we’ve previously announced to the market. Kimberley Diamonds is well advanced in its strategy of becoming a diversified diamond producer.argyle smoke creek

The Smoke Creek diamond project also has one mining lease application covering 11 kilometers of unmined diamondiferous gravels located within the downstream portion of Smoke Creek, a tributary leading from Rio Tinto’s Argyle diamond mine.  Venus Metals acquired the prospecting licenses in 2008, following their surrender by Argyle Diamond Mines Pty. Ltd., a subsidiary of Rio Tinto. Kimberley Diamond stated that the Smoke Creek diamond project has an inferred resource of approximately 6 million carats.

Additionally, between 1982 and 2000, the Argyle joint venture, in which Rio Tinto held a 56.8 percent stake, Ashton Mining Ltd. held a 38.2 percent share and the Western Australian Diamond Trust had 5 percent, processed  42 million carats of diamonds.

Kimberley Diamonds will seek to obtain the necessary approvals from the various authorities and stakeholders before it can commence production at the Smoke Creek project. An alluvial diamond processing plant owned by the company will be transported to site as soon as practicable.

Tags: acquisition, Australia, Jeff Miller, Kimberley Diamonds
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