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Drilling Highlights Potential for Increase in Kimberlite Tonnage at Lemphane Pipe, Lesotho
Paragon Diamonds Limited, the AIM quoted diamond development company, is pleased to announce a recently completed drilling programme at its flagship Lemphane Kimberlite Project in Lesotho has demonstrated the potential for a further increase in the Project’s present tonnage estimate of 48Mt of kimberlite. The results could have positive implications for the economics and life of mine at Lemphane, which is located among a cluster of kimberlites known for producing large, high value diamonds and where Stage 1 production is due to commence in Q1 2015 (subject to financing). This will involve the extraction of 1 million tonnes of kimberlite over a two year period which, according to an independent report, is expected to lead to the recovery of over 100 diamonds larger than 9 carats, including stones over 100 carats in size.
Between August and October 2014, Paragon’s 80% owned subsidiary, Meso Diamonds, carried out the latest drilling programme at Lemphane which consisted of nine holes totalling 1,248m. Four of the holes were planned to intersect the outer contact of the kimberlite at depths between 150-200m below surface. All holes achieved their objective of delineating the shape of the upper kimberlite in more detail, as well as better defining the boundary between the smaller, lower-grade northern portion, and the higher-grade, larger diamond size southern portion, as well as demonstrating the continuation of the higher grade satellite pipe to at least 150m in depth. In addition, two holes demonstrated that the eastern contact of the kimberlite is vertical to at least 150m in depth, and that the Lemphane kimberlite therefore has the potential to host a higher tonnage than previously believed.
As such the geological modelling, which is ongoing, will be based on a detailed mapped surface perimeter of the kimberlite (300m x 250m or 6 hectares in surface area), on four wall rock contact intersections in the near surface (150-200m depth), on eight wall rock contact intersections at between 200-300m depth and on four intersections below 300m.
The drill results have been integrated into the in-house 3D geological model, and interrogation of that model demonstrates the maximum dimensions of the kimberlite at 100m depth (2,500m ASL level) are 295m x 215m, at 200m depth (2,400m ASL) are 275m x 195m and at 300m depth (2,300m ASL) are 260m x 150m. These intervals correspond to approximately the 5 year, 10 year and 15 year open pit envelope of circa 15Mt, 30Mt and 45Mt of kimberlite respectively. The kimberlite maintains a planar sectional area in excess of circa 3 hectares at 350m below surface (2,250m ASL) and is open at depth below that.
Two outcomes from this latest drilling programme are that an improvement in the overall kimberlite tonnage to a given depth can be expected, and a reduction in the overall waste:ore (stripping) ratio to a given depth is anticipated, compared to the 2012 Scoping Study.
Drilling was undertaken by Rodio Geotechnical Services which has previously undertaken drilling for the Company at Lemphane, and is the main drilling contractor at the nearby Letšeng Diamond Mine. On completion of this latest round of drilling, Rodio has agreed, at no charge to Paragon, to station a drill rig at the Lemphane project site to cover future drilling needs in 2015. It is intended to drill a final series of eight holes for approximately 1,600m to confirm the dimensions of the kimberlite at between 200-300m depth below surface, as well as undertaking geotechnical drilling for the purposes of tailings storage facility and open pit construction at Lemphane.
Paragon’s Stephen Grimmer said, “The drilling results are entirely positive and better than previously anticipated by the Company. I am particularly pleased that they show the kimberlite at Lemphane is larger at depth than previously assumed which has positive implications for the overall tonnage and a reduced waste:ore ratio and indeed the economics of Lemphane as a high value/ large stone diamond project. I look forward to seeing these results being incorporated into the planned Pre-Feasibility study to be conducted in tandem with Stage 1 production, which, subject to financing, is planned to commence in Q1 2015 as Lemphane’s potential as the next world class kimberlite in Lesotho continues to increase.”
