SearchGold Reports That Stellar Announces First 1,000 Carats Produced From Underground Trial Mining at Kono Project in Sierra Le
June 23 2008 - 1:00PM
Marketwired
MONTREAL, QUEBEC (FRANKFURT: S1O), is pleased to announce a
progress update on the Kono kimberlite diamond project in Sierra
Leone. The Kono project is a Joint Venture between Stellar Diamonds
Ltd ("Stellar") (49%) and Petra Diamonds Limited ("Petra") (51%).
SearchGold holds 2,672,629 shares of Stellar which equals to an
8.7% interest in the Company.
Kono Project Highlights
- 1,049 carats (12,132 diamonds) recovered from trial mining to
end May 2008
- First commercial diamond tender, and project revenues,
scheduled for August 2008
- Pol-K shaft in-situ kimberlite grade increased to 66 carats
per hundred tonnes ("cpht") and Bardu shaft in-situ grade
established at 75cpht
- Stope trial mining from Pol-K shaft due to commence in
August
- 3,167 line km E-M geophysical survey completed, processing and
target selection ongoing
Karl Smithson, CEO of Stellar Diamonds commented: "The
production of the first 1,000 carats from underground trial mining
is a significant milestone in our Joint Venture with Petra
Diamonds. We continue to be encouraged by the kimberlite grades and
observed quality of diamonds being produced. We are moving to a
position at the Pol-K shaft where we expect to significantly
increase the monthly tonnage and diamond production. Through the
planned tenders of diamonds in August and October, and regular
diamond sales in the coming months, we expect to be able to offset
project expenditure from revenues. We take this opportunity to
congratulate Petra Diamonds, our partners and operators of the Kono
project, for their continued diligent management and excellent
progress made to date."
Overview
The exploration and trial mining operations at Kono project are
progressing well and continue to deliver encouraging results. Two
shafts are being developed, Pol-K and Bardu, and processing of
exploration and development material to date has yielded 12,132
diamonds weighing a total of 1,049 carats.
The first commercial tender of diamonds from the Kono project is
planned for August in Johannesburg, through existing Petra
marketing channels. This is likely to comprise approximately 800
carats of diamonds from the Pol-K shaft and will give an indication
of the likely minimum value to be realised from this kimberlite
shaft. A second, larger tender, comprising diamonds produced from
the first Pol-K stope, is being scheduled for October.
As diamond production from the trial mining stopes increases
over the coming months, revenues from diamond sales are expected to
generate regular cash flow to offset against development
expenditure.
Pol-K Shaft
Development at the Pol-K shaft is continuing at the 64.5m level,
with preparations underway for the commencement of test stope
mining. Stoping is expected to commence by August and will result
in increased ore extraction on which to assess, with more
confidence, the diamond grade and value, as well as likely mining
operating costs. The current grade at Pol-K is 66cpht and some
668.35 carats have been produced from this kimberlite.
Bardu Shaft
At the Bardu shaft, which is currently at a depth of 50m, a
break out from the shaft has begun and exploration development
along fissure strike has commenced. Some 244 carats of diamond have
been produced at an average grade of 75cpht. Shaft sinking will
continue to the 64.5m level (as at Pol-K) at which point, subject
to ground conditions, stoping operations will commence.
E-M Geophysical Survey
Due to the considerable exploration potential at Kono, a 3,167
line km airborne electromagnetic geophysical survey has been
completed by Fugro Airborne Surveys, the objective being the
discovery of kimberlite pipes and blows. Processing of the data
from the survey is expected to be complete by August, when target
identification and follow-up of selected anomalies will
commence.
Other News
Tongo Project
Mini-bulk sampling of four kimberlite dykes has commenced at the
100% owned Tongo project in Sierra Leone. Previous diamond testing
by Stellar and independent analysis of these results estimated
diamond grades of between 100cpht and 500cpht for these
kimberlites. Extensions of some of these same kimberlites in an
adjacent licence were recently bulk sampled by Koidu Holdings, who
reported grades of between 196cpht and 288cpht from a 1,000 tonne
sample. The historical diamond value for the Tongo dykes is
estimated to be over US$175 per carat, which further supports
Stellar's belief that these high grade dykes could have economic
potential.
The objective of Stellar's current mini-bulk sampling programme
is to collect and process approximately 400 tonnes of kimberlite in
order to determine with more confidence the diamond grade and value
from the kimberlites within Stellar's licence area.
North DRC Project
The first phase sampling programme has been completed in the
1,308km2 Remec joint venture area. Some 117 samples have been
collected and shipped to Stellar's diamond laboratory in Monrovia,
Liberia. Initial results show an abundance of kimberlitic indicator
minerals in some samples, which is suggestive of the presence of as
yet undiscovered kimberlites in the licence area. An appropriate
follow up programme will be implemented once all results are
available and interpreted. Stellar has the right to earn a 75%
interest in the joint venture through funding to the bankable
feasibility stage.
IPO Update
The Board of Stellar has decided to push back the planned IPO to
Q4-08 on the basis of prevailing market conditions. Additionally,
the Board also felt that Stellar would be in a stronger position to
complete its IPO once the first diamond tenders have been
completed. By this time Stellar expects to have realised its first
revenues, adding value to the Company ahead of the planned listing.
The Chairman of Stellar, Lord Daresbury, has written to all Stellar
shareholders in respect of the above, as well as a proposed interim
private placement of up to pounds sterling 2 million to be offered
in July 2008.
About SearchGold Resources Inc.
SearchGold Resources is a Canadian-based mining exploration
company whose primary mission is to target, explore and develop
gold deposits in Africa. The expansion strategy executed in 2006
has set the stage for the Company's development in 2007 through
increased activity on the advanced projects, a new acquisition and
the segmentation of its activities to unlock value for its
shareholders. SearchGold's diamond assets were re-organized along
with Mano River Resources Inc., to create an integrated diamond
company called Stellar Diamonds Limited of which SearchGold holds
2.7 million shares. SearchGold's Canadian gold assets were also
re-organized through the creation of Golden Share Mining
Corporation (TSX VENTURE: GSH), a dynamic junior exploration
company focused on gold exploration in Canada.
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Contacts: SearchGold Resources Inc. Philippe Giaro President
& CEO 32-473-52-30-29 phgiaro@skynet.be SearchGold Resources
Inc. Denis Tremblay Vice-President 514-866-4224 info@searchgold.ca
www.searchgold.ca CHF Investor Relations Alison Tullis Senior
Account Manager 416-868-1079 x 233 alison@chfir.com
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