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Positive Results of Independent Modelling Report at the Lemphane Kimberlite Pipe Project, Lesotho
Paragon Diamonds Limited, the AIM quoted diamond development and production company in Africa, has announced positive results of an independent size frequency and revenue modelling report based on 300 carats of diamonds recovered during the 2012/3 bulk sampling programme at its Lemphane Kimberlite Pipe Project in Lesotho. These results support enhanced economics of the Project ahead of the commencement of Stage 1 Production in the near to mid-term.
* A +100 carat diamond expected per million tonnes processed
* Anticipated diamond values projected between US$930/carat and US$1,025/
carat, to be verified during Stage 1 production
* Size frequency indicates 12% of carats as diamonds exceeding 9 carats
* Conservative overall grade of 2cpht used for basis of modelling
Ahead of commencement of planned Stage 1 Production, the Company commissioned The MSA Group, and Dr. Johannes Ferreira to undertake a size frequency and revenue modelling report to independently verify the Company’s in-house estimates. Dr Ferreira is an internationally recognised authority in this field and has previously studied other large diamond size, exceptional value but low grade diamond deposits, including the Mothae kimberlite in Lesotho, Lucara Diamond Corp’s Karowe Mine in Botswana, and DeBeers’ Victor Mine in Canada.
Circa 300 carats of diamonds were recovered from a bulk sampling programme of over 15,000 tonnes of kimberlite at Lemphane, which was concluded in June 2013. The majority of these diamonds were subsequently independently valued by WWW International Diamond Consultants in September 2013. It should be noted however, that the values obtained relate only to the actual diamonds recovered.
Diamonds exceeding 9 carats were not recovered due to limited sample size, although their occurrence can be statistically predicted with confidence. Large diamonds carry exceptional value (over 80% of the total value at the nearby Let šeng Mine) and modelling seeks to address this by applying appropriate values to large diamonds anticipated to be recovered during mining operations. Size frequency and value modelling are standard statistical techniques to determine the anticipated diamond sizes and values that would be expected in the much larger diamond populations recovered during production operations.
