Stellar Diamonds Share Discussion Threads

[leopold555] 09/10/2014 06:46

Stellar Diamonds plc

("Stellar" or the "Company")

9 October 2014

First Diamonds from Trial Mining at Baoulé Kimberlite Pipe in Guinea



Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that first diamonds have been recovered from the commissioning of the mine plant at the Baoulé kimberlite pipe in Guinea.



Highlights:

· 100tph treatment plant commissioned on schedule in September 2014

· First limited ore processed has yielded over 50 carats, including stones of 3.76cts and 1.37cts

· Plan to move in to full scale trial mining once plant optimisation complete

· Objective to process at least 100,000 tonnes for diamond grade and value estimation



Stellar Diamonds Chief Executive Karl Smithson commented from the Baoulé project:

"I am delighted to be on site to witness the first recovery of diamonds from our Baoulé pipe which is a key milestone for Stellar. Our team has done an excellent job to get the project up and running in a short space of time and under challenging conditions during the rainy season. Our next objective is to optimise the commissioning of the plant before increasing the volume throughput of kimberlite ore, which could take a few weeks further. Whilst this large scale bulk sampling, or trial mining, is expected to establish the diamond grade and value of the kimberlite pipe to a high degree of confidence, it is also expected to provide cash flow to the Company over the next twelve months."



Operational Progress

Stripping of the eastern lobe of the 5 hectare Baoulé pipe has been underway since early September and has now exposed highly decomposed kimberlite underlying a laterite cap and mixture of saprolitic kimberlite and laterite that has been extensively dug by local artisanal miners. This material has been stockpiled separately from cleaner and less contaminated kimberlite. The kimberlite has been collected from a controlled bulk sample measuring 24m x 16m x 3m and weighing approximately 2,200 wet tonnes. Measurements for specific gravity, bulk density and water content are currently being undertaken in order that the diamond grade can be established during processing.



Whilst the pipe stripping was on-going the construction of the 100 tonne per hour dense media separation ("DMS") processing plant was completed and tested to establish its optimum operational parameters. Commissioning began in mid-September with the processing of the mixed decomposed kimberlite and laterite stockpile. Once the plant was deemed to be operating efficiently in terms of diamond recoveries, processing of the decomposed kimberlite stockpile commenced.



All samples processed have yielded diamonds with some 54 carats having been recovered from the limited processing to date. These include a gem diamond of 1.37 carats as well as a 3.76 carat lower quality stone. Grades will be calculated once the representative density and moisture content have been measured and significantly more volume has been processed.



Baoulé Pipe Summary

The Baoulé kimberlite pipe was discovered in 1999 and was subject to drilling and initial bulk sampling by earlier operators. A geological database is available on the project which shows that the pipe was delineated to 5 hectares in size and drilled to a maximum depth of 190m, but remains open at depth. Microdiamond analysis returned modelled macrodiamond grades of between 20 to 40 carats per hundred tonnes ('cpht') though bulk sampling yielded lower grades (+1mm) of 7cpht and 13cpht using pan plant and DMS technology respectively.



In-house modelling of previous drilling over the pipe suggests a target of over 22 million tonnes to a depth of 300m, which, at the DMS generated grade of 13cpht, would suggest a target of 3 million carats; increasing to 6.5 million carats using the average microdiamond grade of 30cpht. However, investors should note that this is not an independent resource estimate or in accordance with the JORC Code.



In 2000, a parcel of 509 carats produced by the pan plant, which did not contain any large stones, was sold for US$157 per carat. The Company believes that there may be considerable upside on this diamond price and the same parcel could realistically be expected to achieve prices in excess of US$200 per carat in the current market.



Joint Venture Agreement

As announced on 9 December 2013, Stellar signed a joint venture agreement ("JVA") with local group Société;Tassiliman ("Tassilman") in relation to a licence to mine an area covering 1km which hosts the Baoulé kimberlite pipe (the "Licence"). Under the terms of the JVA, Stellar was entitled to earn a 75% interest in the JVA project once it had made expenditure of US$5 million. Stellar has now achieved this milestone of a 75% interest through a combination of expenditure by Stellar and vending into the project of plant and machinery. As a result, and in accordance with the JVA, a new joint venture company has now been created ("JV Co") and the Licence is being transferred from Tassiliman to JV Co. Stellar has the option to purchase the remaining 25% of JV Co at fair market value and with the agreement of the joint venture partners.



Ebola Update

Operations are continuing but under monitored conditions at Baoulé which is located in an area that has not yet had a case of the Ebola virus. The Company has been at the forefront of elevating awareness amongst the workforce and the surrounding local communities and civic leaders of the threat of Ebola and its prevention. Increased levels of sanitation and health screening have been established at the camp and project sites and will be rolled out to the homes of the Company's employees. Restrictions on staff travel are also implemented and a total ban on travel to the epicenters of the Ebola virus in Guinea is in place. The Company continues to monitor the situation very closely to ensure the continued well-being of all employees and that of the local communities.

[leopold555] 09/10/2014 05:17

I still hold

[asmodeus] 30/9/2014 11:51

I would like to know why James Campbell resigned...

[frogkid] 30/9/2014 07:24

Are we at 10p yet ?

[odvod] 30/9/2014 07:13

www.europeanoilandgas.co.uk/article-page.php?contentid=14135&issueid=423

[tradermel] 30/9/2014 07:11

Not really sure how to take todays RNS

[taffy100] 24/9/2014 16:19

hTTP/proactiveinvestors.co.uk/companies/news/72571/stellar-resources-next-few-months-about-carats-and-cashflow--72571.html

[taffy100] 24/9/2014 16:19

Stellar Diamonds: Next few months about carats and cashflow

[...]

[cantrememberthis2] 18/9/2014 11:01

Romeo, Romeo where are thou news-eo!!

Stellar we await lift off.

Strapped in Cinderella and awaiting the lift off to 2p.

[totally banjo] 11/9/2014 11:15

Stellar Diamonds says testing has begun ahead of trial at Guinea project
By Ian Lyall
September 11 2014, 8:01am

Stellar Diamonds (LON:STEL) said testing of its 100-tonne per hour dense media separation plant has begun ahead of trial mining at the Baoulé kimberlite project in Guinea next month.

The objective is to process at least 100,000 tonnes of ore in order to estimate the diamond grade and average value.

The process, it is hoped, will generate an internal resource statement as well as valuable cash flow, with the first sales expected to begin in fourth quarter.

The project is in the heart of the Aredor district, an area renowned for producing high value stones.

Stellar said waste stripping and ore extraction for stockpiling has already commenced.

Chief executive Karl Smithson added: "I am delighted that our team at Baoulé is continuing to deliver on schedule resulting in our processing plant now being fully constructed ahead of imminent trial mining.

“Commissioning is underway to establish the optimal operating parameters for the plant, after which the first kimberlite ore will be processed.

“Our objective is to process a very large sample which will not only establish the diamond grades and values with high levels of confidence, but also determine the presence of any large stones for which the Aredor region of Guinea is world renowned.

“During this process any diamonds produced from trial mining will be sold in order to generate cash flow for the company.”

[cantrememberthis2] 11/9/2014 06:44

Bloody marvellous - loving it, becoming a producer, is someone having a laugh? Brilliant and bring it on, liking the way they have already said they would flog any diamonds en-route to production!

2p target short term now.

[tradermel] 11/9/2014 06:39

Awesome RNS

[cantrememberthis2] 08/9/2014 13:18

Im in 175K today

GLA

[tradermel] 05/9/2014 06:48

Ups and downs, but the longer term trends point the way.

[bsg] 03/9/2014 09:45

Up on zip!

edit: ... and down.

[goodpick] 22/8/2014 07:40

Stel was trading at this level and lower before Ebola broke out. !

[oilbuy] 21/8/2014 19:44

Unfortunately the Ebola virus is worse than were hearing. STEL and GSR share prices have been effected directly. WHO say 6 months to contain the virus. In SL the government are talking about a 21 day curfew . This is going to cause civil unrest and exacerbate the problem. For example we now have shootings in North Point Monrovia Liberia. In Freetown SL the government decided to reduce the opening hours of public sector bodies and banks reduced their opening hours. So now the banks are more densely populated causing a higher chance of contact, if their is an infected person amongst them. The connacht hospital had over 60 bodys layed out in a room and staff without protective clothing. The WHO to little to late in my opinion.Looks like both stocks are trading below par and look to be good value at present if the Ebola virus can be contained

[frogkid] 21/8/2014 18:43

a bit more than an explorer to be fair, but if you dont like a gamble then dont buy into it !!

[buoycat] 20/8/2014 15:02

I thought this was a stel board not a qpp bashing board? In terms of risk they don't get much riskier than an aim mining explorer.

[leopold555] 20/8/2014 12:33

Beautiful chart, compare that chart to something that has a terrible downtrend ummmm let me think, oh yes QPP and you can appreciate what a fantastic opportunity this is.

[goodpick] 20/8/2014 11:04

"The diamond parcel will now undergo valuation and modelling, with the results expected by early September 2014, prior to a revised financial model and updated resource statement, which we hope to have issued shortly thereafter. We look forward to reporting on these upcoming development milestones as we continue to unlock the intrinsic value of Tongo."We should be looking for the next steps beyond the revised financial model.I am hoping the next steps involve approaching banks and perhaps a JV partner to exploit Tonga asap.That is going to get the share price going more than anything else.