SearchGold Provides Opertional Update on Stellar DSearchGold Provides Opertional Update on Stellar Diamondsplc
Last Update: 10/19/2010 10:14:40 AM
MONTREAL, QUEBEC, Oct 19, 2010 (Marketwire via COMTEX) --SearchGold Resources Inc. ("SearchGold")(RSG)(frankfurt:S1O) is pleased to provide an update on Stellar Diamondsplc ("Stellar") and its African diamond operations.
Q3 2010 Mandala operational update
Recent highlights include :
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Quarterly production from Mandala of 18,291 carats, up 31% on second
quarter,
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Quarterly sales from Mandala of 18,549 carats at an average price of $US
33 per carat,
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Quarterly revenue from Mandala of $US 609,000,
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Diamonds in stock of 8,194 carats,
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Total production at Mandala has now exceeded 102,000 carats.
At the Mandala diamond project, production for the third quarter endingSeptember 2010 yielded 18,291 carats at an average grade of 23.39 caratsper hundred tonnes ("cpht") of mined gravel. The quarterly productionwas significantly higher than the second quarter (13,913 carats)primarily as a result of the introduction of new earth moving machineryin late July and irrespective of the seasonal rains forcing productionto lower grade high terrace deposits.
Diamond sales from Mandala in the third quarter comprised 18,549 caratsat an average price of $US 32.82 per carat, for revenue of $US 608,819,though 8,194 carats were in stock at the end of the quarter. Sales for2010 to date total 51,471 carats for revenue of $US 1,742,635. Theaverage price per carat for 2010, compared to 2009 is $US 33.86 percarat versus $US 28.16 per carat, 20% higher, reflecting the generalimprovement in global diamond prices in the period.
Total production at Mandala since Stellar commenced mining in April 2009has now exceeded a major milestone of 100,000 carats, at an averagegrade of 34cpht.
Bomboko Diamond Project update
Recent highlights include :
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Production of 576 carats,
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Diamond sales of 1,664 carats at an average price of $US 115 per carat,
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Latest sales price achieved of $US 132 per carat,
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Total production of 5,116 carats from trial mining at Bomboko to date,
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Optimisation of plant to enhance diamond recoveries on going.
Two parcels of diamonds were sold from Bomboko in the third quarter,comprising 1,664 carats for an average sales price of $US 114.82,generating revenue of $US 191,057. The sale of the most recent parcel of815 carats achieved a higher average sales price of $US 132.07 percarat, reflecting the general improvement in global diamond prices.
As anticipated, trial mining at Bomboko was temporarily suspended inearly August due to the seasonal rains. Production for the quarter wastherefore reduced from the second quarter (576 carats versus 1,510carats). Total production from trial mining at Bomboko has now reached5,116 carats at an average grade of 4 carats per hundred tonne ofgravel.
Resource Definition Ongoing
The Bomboko diamond operation currently has an inferred resource at41,000 carats. Stellar considers this may be significantly expanded andhas therefore been undertaking a programme of geological mappingdesigned to identify additional resource areas. Trial mining by way of aseries of regular mine cuts across these potential new resource areaswill commence in late October. In the meantime the treatment plant isbeing modified and upgraded in order to enhance diamond recoveries.Furthermore, an X-Ray Flow sort diamond recovery module is beinginstalled and this is expected to further increase diamond recovery andsecurity.
About Stellar Diamonds plc
Stellar Diamonds plc is a London (aim:STEL) listed diamond mining andexploration company that has a portfolio of projects in West Africa. Twoprojects in Guinea, Mandala and Bomboko, are in mining and trial miningrespectively, which provide cash flow to the Company.
Stellar also owns full rights over four high-grade kimberlites that areto be the focus of future development. In Sierra Leone at the Tongoproject a bulk sampling programme is currently underway on one keykimberlite to assess the diamond grade and value, whereas at the Konoproject underground trial mining has produced 4,200 carats as part of aneconomic evaluation exercise. In Guinea Stellar's Droujba kimberlitepipe and Bouro kimberlite dykes are located in proximity to Stellar'sMandala project and demonstrate high diamond grades. Droujba will bedrilled in the near future.
About SearchGold Resources Inc.
SearchGold is a Canadian-based mining exploration company whose primarymission is to target, explore and develop gold deposits in Africa. TheCompany is currently involved in Burkina Faso, Gabon and Guinea; it hasrecently been evaluating mining projects in new African jurisdictions,which are geographically accretive with its current position. Throughinnovative corporate transactions, SearchGold has been able to retain aninterest in all the important assets it has acquired and developedduring its existence as a public company and intends on leveraging itslong established presence in Africa to pursue its development.
SearchGold holds two million shares of Stellar Diamonds plc. Please see:www.stellar-diamonds.comfor additional information.