|
RAPAPORT... Stellar Diamonds plc signed an agreement with Société Tassiliman to acquire up to a 100 percent interest in the diamondiferous kimberlite pipe Baoulé, which is located in the Aredor district of Guinea.
The Baoulé kimberlite pipe was discovered in 1999 and prior drilling information shows that the pipe was delineated to 5 hectares in size and drilled to a maximum depth of 190 meters, but remains open at depth. Microdiamond analysis returned modeled grades of between 20 carats to 40 carats per hundred tonnes (cpht), though bulk sampling yielded lower grades of 7cpht, using pan plant and 13cpht, using DMS technology. One year after the pipe was discovered, a parcel of 509 carats produced by the pan plant, and which did not contain any large stones, was sold for $157 per carat, according to the junior explorer. Alluvial mining downstream yielded a 100-carat stone and reported diamond values of over $400 per carat. In-house modeling of previous drilling on the license area suggested a target of over 22 million tonnes to a depth of 300 meters. While the data are not in accordance with JORC, the DMS-generated grade of 13cpht would suggest a target of 3 million carats; however, using the average microdiamond grade of 30cpht this target increases to 6.5 million carats, according to Stellar. Karl Smithson, Stellar's CEO, said, "We are very pleased to have secured an option to acquire up to a 100 percent interest in the diamondiferous Baoulé pipe. Located in the former Aredor mining concession, which is one of the largest alluvial diamond mining areas in West Africa, the Baoulé area has a history of producing large, high-quality diamonds. As yet no primary kimberlites have been developed and the Baoulé pipe has many of the hallmarks of a potentially large tonnage project that can be rapidly advanced. "While we equally remain focused on the feasibility study of our Tongo project in Sierra Leone, Stellar is leveraging off its established connections to secure additional projects with exceptional potential. West Africa holds significant diamond resources which remain largely untapped and this joint venture greatly complements our portfolio of assets. We particularly welcome our partnership with Société Tassiliman and look forward to a long-term and successful relationship in Guinea," he said. The agreement entitles Stellar to earn a 75 percent interest in the property through expenditures of $5 million and there is no time requirement. Stellar has the option, but not the obligation, to purchase the remaining 25 percent share at an independently assessed fair market value. If this option is taken, Tassiliman will be granted a 2 percent net profit royalty on any future production revenue. Upon vesting and earning its 75 percent interest, Stellar will create a new company and transfer the license into the entity, which would become the joint-venture vehicle for further development.
|