VANCOUVER, British Columbia, Oct. 05, 2020 (GLOBE NEWSWIRE) -- Southstone Minerals Limited (“Southstone” or the “Company”) (TSX.V – SML) is pleased to provide a production and operational update for the period 1 June 2020 to 31 August 2020 (Q4 2020) on its project portfolio located in South Africa.

Oena Diamond Mine, Republic of South Africa

Production at the Oena Diamond Mine during Q4, 2020 operated normally and during the period a 63.88 carat diamond, the largest diamond recovered by Southstone, was recovered. In addition, a 42.06 carat and 31.14 carat diamond were recovered and sold. There is one mining contractor on site using eight (8) pan plants to process run of mine (“ROM”) material and one Bourevestnik (“BVX”) unit used for diamond recovery. Production results for Q4:

  Carats Produced Number of Diamonds US $ / carat average
Q4 2020 ROM 479.9 145 1,988

The Oena Diamond Mine continues to produce very large and high-quality diamonds as summarized below.

Top 10 Diamonds by Value per Carat for Q2, 2020
Diamond Diamond Size (carats) Sold Price US $ US $ / carat
1 42.06 $338'583 $8'050
2 63.88 $256'111 $4'009
3 12.36 $45'000 $3'641
4 6.02 $14'900 $2'475
5 8.18 $18'888 $2'309
6 5.01 $10'400 $2'076
7 3.66 $7'398 $2'021
8 31.14 $60'160 $1'932
9 2.66 $5'054 $1'900
10 8.75 $15'700 $1'794

Gumrock Mining (Pty) Ltd Joint Venture, Republic of South Africa

Southstone is pleased to announce it has entered into a Production - Exploitation Joint Venture Operating Agreement (the “Joint Venture”) with Gumrock Mining (Pty) Ltd (“Gumrock”). Gumrock has been successfully operating in the alluvial diamond mining business all over South Africa for over 26 years and adds another expert mining contractor to Southstone alluvial diamond operations. The Joint Venture allows Southstone to follow its corporate strategy to quickly exploit near term diamond production opportunities in South Africa.

The Joint Venture contemplates operations ranging from 7,000 to 40,000 tonnes per month, has a term of five (5) years commencing on 1 October 2020 to 30 September 2025 and will focus on extracting diamonds from any concessions or mining permits that may be agreed to by both parties within the Republic of South Africa. Southstone has purchased a 14-foot pan plant and conveyor to contribute to the Joint Venture, which remains the property of Southstone and Gumrock has provided a 20-ton excavator, front end loader, pumps and other required mining and support equipment.

The Joint Venture denotes a 50%-50% split of all operating costs and all profits or losses.

Farm Kareepan Contractors Agreement

Gumrock, on behalf of the Joint Venture, has entered into its first Contractors Agreement on portions of Farm Kareepan 177, Farm Goegedacht 197, Farm Kameelpan 148, Farm Leeuwfontein 185 and Farm Kameelboom 150 (collectively the “Property”). The Property covers 1,819 hectares and is located in the North West Province of South Africa approximately 200 kilometers north east of Kimberley. The Contractors Agreement is initially for a six-month period during which time the Joint Venture will pay a 15% gross sales royalty to the landowner and any diamonds sold for over 2 million South African Rand will be subject to a 20% gross sales royalty.

The Joint Venture has commenced test pitting on the Property and to date over 60 test pits ranging from 1 to 5 meters in depth have been completed and mapped. It is anticipated that test pitting will continue for another 1 to 2 weeks and once an understanding is reached with the location of the favorable gravels, bulk sampling will commence. Any diamonds recovered during this period will be sold on open tender.

Farm Panfontein 58 HO

The Company has terminated the Farm Panfontein 58 HO Acquisition Agreement due to certain suspensive conditions not being met for closing.

Mano River, Republic of Liberia

Given the outlook for the current global pandemic situation, the Company has determined that it will relinquish the Mano River Project permit.