Stellar Diamonds says its project in Sierra Leona confirmed as a high value asset

London-trade Stellar Diamonds (LON:STEL) said today a first JORC compliant estimate for its Tongo project in Sierra Leone confirmed it as a high value, high growth asset.

“The high diamond grades and values exhibited by Dyke-1 make it one of the highest value kimberlites in terms of dollars per tonne worldwide,” said  Stellar’s chief executive Karl Smithson.

The report, prepared by CAE Mining, showed a 660,000 carat inferred resource for Dyke-1 with a resource grade of 120 carats per hundred tonnes.

Stellar added that the diamonds’ value of between US$225 and US$270 meant an in-situ diamond value for the site so far of between US$148 million and US$178 million. Cut-off grades were +1.0mm.

Smithson added that the maiden inferred resource had confirmed the potential of the Tongo Kimberlite Dyke project and was a “significant milestone” for the company, adding the project also had potential for major expansion and development.

“In addition there is 25% of the mapped strike of Dyke-1 yet to be drilled into the resource category and there is considerable potential to expand the resource with depth. Similar operational kimberlite dyke hosted diamond deposits in South Africa are mined to a depth of 700m below surface.

“Furthermore, additional resource potential exists from other nearby kimberlite dykes, including the 1km long Dyke-4 which has recently been bulk sampled and returned a diamond grade of 109cpht and an average diamond value of $100 per carat.”

This maiden JORC inferred resource was based on a 1.9km section of the 2.5km long Dyke-1 kimberlite.

Stellar said there was a 600 metre section of Dkye-1 still yet to be drilled in addtion to the potential from deeper drilling to 700 metres and resource drilling of Dyke-4,

Drilling and bulk sampling of the 800m long Dyke-2, located only 200m to the north of Dyke-1, could also add to the resources, Stellar said.