Exploration and Evaluation
Exploration commenced in 2005 on three of the Longatshimo River project licences. The aim of the initial exploration programme was to identify target areas with sufficient gravels to be classified as inferred resources and more specifically to identify follow up targets for the bulk sampling programme. The exploration programme included surface mapping and pitting, sampling and processing as well as classification of gravels. Optimal mega pits were dug and the gravels processed with the use of Boesman Jigs.
Selective Bulk sampling areas were delineated by collating and assessing all results obtained from the initial exploration programme. The earth moving equipment was utilized to supply large samples (more than 1000m3) to the processing facility. To date 10 Bulk sampling terrace areas have been exploited with the main focus on Area 8, where 26 adjacent large individual bulk samples were taken and processed. This has resulted in the delineation of a potential initial mining area with an estimated 52,000 carats at an average grade of 0.33cts/m3 and overburden of 4.6m.
The Longatshimo Project is currently on “care and maintenance” until rough diamond prices improve and additional funding has been secured. On start up, the bulk sampling programme will be resumed and additional equipment will be acquired to commence with pilot mining. . The first phase of pilot mining will entail increasing the earthmoving fleet with a 40 ton excavator, additional ADT’s and enhancing the processing capacity with a 35 ton DMS and scrubber. The regional exploration programme will also continue with the aim of increasing the resource base. Four separate parcels of diamonds were sent to Kinshasa for evaluation and Kimberley cerification. These parcels attained an average evaluation price of $190/ct in Kinshasa by the official CEEC (Centre D’ Evaluation D’Expertise et de Certification). The parcels were sent to Antwerp and were held in storage awaiting sale by tender when the price of rough diamonds improved. A slight improvement in the market was forcast and a sale was conducted in mid May 2009. The total parcel of 3710 carats achieved an average price of 117$/ct which was quite acceptable during this depressed market and represented approximately 65% of the target price of US$180 per carat. |