JOHANNESBURG (miningweekly.com) – Diamond development company Stellar Diamonds has signed a legally binding conditional tribute mining agreement and revenue share agreement with Octea Mining in respect of the combined Tongo-Tonguma kimberlite diamond project, in eastern Sierra Leone.
“These agreements with Octea . . . will allow Stellar to build a single mine for the simultaneous commercial production from the contiguous Tongo and Tonguma kimberlite deposits,” Stellar CEO Karl Smithson said on Friday.
He added that the combined project has an initial 4.5-million-carat resource which, owing to the high grade and high-quality diamonds, is one of the highest-value kimberlite orebodies in Africa on a dollar per tonne basis.
The 21-year mine plan, with estimated output of over 200 000 ct/y at full production, will quantify this development as the second-largest kimberlite diamond mine in West Africa.
The project will require capital investment of just under $32-million over two years to reach full-scale commercial production.
The first elements of mine development are planned to start within three months of completion of the mining agreement.
Octea will continue to hold the Tonguma mining licence through its subsidiary company Tonguma and Stellar will continue to own its adjacent Tongo licence and subsidiary company Sierra Diamonds.
Stellar will also own certain infrastructure and capital items procured for and used at the mine development on both licences.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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