Stellar Diamonds PLC STEL Tongo Licence Renewed in Sierra Leone

  Stellar Diamonds PLC (STEL) - Tongo Licence Renewed in Sierra Leone

RNS Number : 8605I
Stellar Diamonds PLC
31 July 2012
 



 

 

 

 

 

                                       

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE
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31 July 2012

 

AIM: STEL

                             Stellar Diamonds plc

                         ("Stellar" or the "Company")

                                       

                    Tongo Licence Renewed in Sierra Leone

                                       

Stellar Diamonds  plc,  the  London listed  (AIM:  STEL)  diamond  development 
company focused on West  Africa, is pleased to  announce that its  exploration 
licence over the Tongo kimberlite dyke project has been renewed on a  priority 
rights basis by the Ministry of Minerals Resources of Sierra Leone, as allowed
for by the Mines and Minerals Act 2009.

 

Highlights:

·      Licence is host to four diamondiferous kimberlite dykes

·      Current inferred  resource of  660,000 carats with  a modelled  diamond 
value of $248 per carat

·      Drilling and  evaluation ongoing  with the objective  of a  substantial 
increase in the resource

·      Discussions continue with the Ministry of Mines concerning the  renewal 
of the Kono licence

 

Chief Executive Karl Smithson commented:

"The renewal  of our  Tongo exploration  licence in  line with  the Mines  and 
Minerals Act of 2009 enables the  Company to pursue its objective of  doubling 
the  existing  660,000  carat  resource  through  the  ongoing  drilling   and 
evaluation programme.  We  are  on  track  to  deliver  an  upgraded  resource 
statement for Tongo in the fourth quarter of this year.

 

"Tongo remains a  priority project for  Stellar Diamonds and,  along with  the 
Droujba kimberlite project in Guinea, we believe we are well placed to deliver
value in the short term through  increasing our inferred resource base of  3.1 
million carats and moving these projects through to the pre-feasibility stage.

 

"We continue to engage with the  Ministry of Minerals Resources regarding  the 
Kono licence dispute. The two Kono licences were initially granted in 2005 and
the Company has to date invested  over $19m in exploration and development  at 
Kono. We are committed to ensuring  the Company's rights at Kono are  honoured 
as allowed for by the Mines and  Minerals Act 2009. We will keep  shareholders 
informed of our activities as we progress."

 

About Stellar Diamonds plc

Stellar is a London  (AIM: STEL) listed West  African focussed diamond  mining 
and exploration  company which  is advancing  the Droujba  kimberlite pipe  in 
Guinea and the Tongo kimberlite dyke  project in Sierra Leone, which  combined 
have a JORC Compliant,  inferred diamond resource of  3.1 million carats.  The 
Company recently announced  a dispute  with the  Ministry of  Mines in  Sierra 
Leone over its two Kono licences.

 

For further information please  contact the following  or visit the  Company's 
website at www.stellar-diamonds.com.

 

Stellar Diamonds plc              

Karl Smithson, Chief Executive                                        Tel: +44
(0) 20 7257 2930

 

Northland Capital Partners Limited

(Nominated Advisor and Broker)

Gavin Burnell, Edward Hutton                                          Tel: +44
(0) 20 7796 8800

 

Daniel Stewart & Company plc

(Co-Broker)

Martin Lampshire, Antony  Legge                                      Tel:  +44 
(0) 20 7776 6550

 

Pelham Bell Pottinger

James MacFarlane, Joanna Boon                                    Tel: +44  (0) 
20 7861 3232

 

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
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