Acquisition
13 November 2003 - 6:00PM
UK Regulatory
RNS Number:0050S
African Diamonds PLC
13 November 2003
13th November 2003
African Diamonds acquires Lesotho diamond project
Data indicates significant gem quality diamonds over 2 carats
African Diamonds plc ("AFD") is delighted to announce a new joint venture with
Angel Diamonds Limited of Lesotho, to evaluate and exploit the diamond potential
of the Kolo kimberlite group. AFD will retain a 55% stake in the venture.
The Kolo Pipe 66 kimberlite is approximately 1.1 Hectare and is exposed at the
surface. The kimberlite was confirmed to be diamond bearing through a United
Nations Development Programme in 1980.
Kolo kimberlite output includes a significant proportion of gem quality diamonds
over 2 carats, for which there is strong demand within the market. The
kimberlite pipe has already produced diamonds which have realised excellent
prices; several have sold for over US$1,000 per carat and one single stone of
over 17 carats was sold for US$126,000.
Data show a grade of 16 carats per hundred tonnes of kimberlite ore. The largest
diamond recovered was 138-carat boart quality stone.
AFD will conduct an evaluation programme to confirm grade and optimise diamond
production. A kimberlite processing and diamond recovery plant is on site. It
was not operating for some years due to the operator's financial difficulties;
AFD expects completion by mid 2004.
In addition to the Kolo Pipe 66 kimberlite, the group has 4 additional
kimberlite pipes, a blow and 8 kimberlite dykes. Artisanal mining on one of the
other pipes within the group confirmed that the kimberlite is diamond bearing.
These kimberlites will also be evaluated.
Chairman, John Teeling, said:
"Whilst our main focus still remains on Botswana and West Africa, from which we
expect drill results within a month, sometimes you encounter exceptional
opportunities that are too attractive to pass by. Lesotho has the highest
concentration of kimberlites worldwide but remains under-explored.
The Lesotho plant can be refurbished in 3 months. We aim to be producing
diamonds from this project in early 2004, in a trial mining venture to prove
commerciality. Our investment is to complete and refurbish the on site plant and
complete the evaluation. Total expense is likely to be under #150,000."
www.afdiamonds.com
Contacts:
African Diamonds Plc
John Teeling Tel: +353 87 2581178
Leon Daniels Tel: +267 24 40252
Redleaf Communications
Nick Lambert Tel: +44 (0) 7811 358 764
This information is provided by RNS
The company news service from the London Stock Exchange
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