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June 2016
MODERN MINING
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WEST AFRICA
Panorama of the Baoulé site showing the treatment plant (right) and workshop/
garage (left) and the Tourou mountains in the background.
US$1 million in revenues. Diamond values have varied widely
from US$91 to US$156 per carat, depending on the market senti-
ment at the time of the sale and the diamond mix of the parcels
sold. However, says Stellar, it is notable that a number of gem
and fancy coloured diamonds commanded premiums and val-
ues of up to US$6 800 per carat, confirming the presence of high
value stones in the Baoulé pipe.
“The results show a clear difference in grade and diamond
quality between the eastern and western lobes, with the volu-
metrically larger eastern lobe being of higher grade and quality,”
comments Stellar’s Chief Executive, Karl Smithson. “With the
higher grade area identified, we intend to sell a further 3 188
carats later in June, with these diamonds all arising from the
western lobe. This planned sale will add to the US$1 million
generated to-date from diamonds sold, which has contributed
significantly to the costs of the exercise. We will then complete
the necessary diamond grade and value modelling as part of the
resource estimation exercise, with our resource target remain-
ing approximately 3 million carats contained within the Baoulé
pipe. This will then allow us to formulate the next development
steps for the project.”
Apart from the Baoulé project, Stellar also holds the Tongo
project in eastern Sierra Leone. Since 2007 Stellar has carried out
systematic and extensive exploration programmes which have
culminated in the establishment of a JORC-compliant diamond
resource of just over 1,45 million carats. A recently completed
Preliminary Economic Assessment (PEA) has defined robust eco-
nomics for an 18-year life of mine on the Dyke-1 kimberlite, with
significant opportunity to enhance both life of mine and project
economics through either deeper mining and potentially bring-
ing in any of the three other high grade kimberlites (Dykes 2, 3
and 4) on the property into the mine life.
Stellar reported recently that it had been verbally informed
that the Minerals Advisory Board (MAB) had approved the
application for a mining licence over the project. Progression of
the licensing process remains subject to the National Minerals
Agency (NMA), the licensing body of the Ministry of Mines, for-
mally writing to Stellar to inform it of the decision and drawing
up a licence agreement to be forwarded to the Minister of Mines
for approval. Thereafter the fiscal terms of the mining licence
will be negotiated between Stellar and the Government of Sierra
Leone and the resulting mining concession agreement will then
require ratification through Parliament.
Photos courtesy of Stellar Diamonds