It said in a statement that these agreements would allow for mining in the combined and contiguous Tongo and Tonguma concessions as well as provide substantial near and long term cash flows.
The project hosts one of the “highest” value kimberlite ore bodies in Africa on a dollar per tonne basis, Stellar said.
It said modest mine development capital expenditure for the first two years had been estimated at $32m including 15 percent contingency.
“The combined project has an initial 4.5 million carat resource which, due to the high grade (100cpht to 260cpht at +1.18mm) and high quality diamonds (US$209/ct to US$310/ct), is considered to be one of the highest value kimberlite ore bodies in Africa on a dollar per tonne basis,” said Stellar chief executive Karl Smithson.
“The 21-year mine plan with a consistent output of over 200,000 carats per year at full production would quantify this development as the second largest kimberlite diamond mine in West Africa.”
The Tongo-Tonguma diamond project would likely generate $45 million in revenue each year upon reaching full production, said Stellar.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished