Stellar Finds Two Large Diamonds

PUBLISHED: 26 Sep 2012 @ 19:44 | Comments (0) | More info about Kenneth G. Mondero

A broken diamond during drilling is often regarded as not a good news, all the worse if there were two. But in the case of Stellar Diamonds plc (LSE:STEL), the company may be saying this is the kind of news they want to read about. Here’s why.

Drilling for its bulk sampling programme at the Droujba project in Guinea – now in its second phase, Stellar said two large diamonds were broken as both were to “too large to fit” through the screen on the bulk sampling plant.

The two diamonds were estimated to be 49.2 carats and 67 carats in size after reassembling the broken pieces, the company said in a statement today.

Shares of the AIM-listed diamond producer jumped 8.3% to 3.25 pence at on the London Stock Exchange, but 0.25 pence lower than its share price back in August 2012 when the company announced its initial samples from the Droujba project exceeded expections.

Yielding Potential

The two large diamonds, however, were of low quality but Stellar, nonetheless, emphasised the potential of the Droujba project to yield large stones, and consequently, a higher diamond resource for the West African-focussed diamond explorer.

Currently, the Droujba deposit holds an estimated 2.5 million carats JORC-compliant inferred resources and the company expects it will be increased.

Last week, Stellar reported 482 carats at an average grade of 161 carats per tonne (cpht) from 299 tonnes taken from the adjacent Katcha Dyke, which also forms part of the Droujba project.

“Coupled with the high grades recently announced from the adjacent Katcha kimberlite dyke, these results from Droujba demonstrate the potential for the project to host a larger diamond resource,” Stellar’s Chief Executive, Karl Smithson, stated, in relation to the recent development.

A total of 1,477 carats at an average of less than 100 cpht, consisting of 122 diamonds, including the two large ones, were recovered from 1,487 dry tonnes during phase 2 of bulk sampling operations.

“An updated resource statement is on track to be delivered ahead of schedule during the fourth quarter of 2012,” Mr. Smithson promised.

Company Spotlight

Stellar Diamonds plc is a diamond exploration and development company with projects in Sierra Leone and Guinea.

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