Luo diamond mining begins in Angola; bulk sampling program on track in
Sierra Leone
DiamondWorks Ltd
DMW
Shares issued 56,518,282 Mar 17 close
$2.45
Tue 18 Mar 97 News
Release
Mr Eric Friedland reports DiamondWorks has begun diamond mining at its Luo project in Angola following the successful, on-site commissioning of its new, 120 tonne an hour floating dredge, Eric Friedland, chairman and CEO, announced today.
The dredge, airlifted into Angola from South Africa, began limited
mining of diamond-bearing gravel from the Chicapa River valley last week.
The dredge is currently operating where the river flows over a section of
the Camatchia kimberlite pipe. The diamonds being recovered will be
evaluated to help identify key target areas for future mining operations
along approximately 20km of the Chicapa, which flows through the Luo
concession.
The 27.9 hectare Camatchia pipe contains an estimated three million
carats in proven and probable diamond reserves and an additional 10 million
carats in inferred reserves. Camatchia is one of the world's largest
diamond pipes, and one of five known pipes on DiamondWorks' Luo property in Angola's Lunda Norte province. "The start of production at Luo marks an important milestone for DiamondWorks," Mr Friedland said in issuing an update report on the company's projects in Angola and Sierra Leone. "At this time, we remain on schedule to begin full-scale, commercial production in Angola in May." Gravel recovered by the dredge is being processed using an interim system of pans and grease tables. All tailings are being stockpiled for re-processing through the new dense-media separation (DMS) plant, which soon will be airlifted to the site from South Africa. It is scheduled to be in operation by May 15. Built by Bateman, Van Eck & Lurie, the DMS plant will be integrated with the existing pre-treatment plant and can concentrate diamonds from about 100 tonnes of alluvial material each hour.
The diamonds will be recovered using high-security Sortex machines to
be installed in the new processing facility. To bring the full treatment capacity on stream in May, DiamondWorks crews are refurbishing the existing washing and classifying units that formed part of the diamond recovery plant previously operated during the early 1980s by Mining and Technical Services, a De Beers subsidiary. Endiama, the Angolan state diamond mining company, reports that during this period the Luo area produced more than 640,000 carats of high-quality diamonds. In order to receive, transport and erect the DMS plant, two 40 tonne articulated trucks, a low loader and power generation systems have arrived at the Luo site. Regular charter flights are scheduled to continue delivering about 100 tonnes of production equipment and
construction supplies each week. In addition to alluvial diamond mining, DiamondWorks is planning a bulk sampling program on the Camatchia pipe, on the west bank of the Chicapa River, and on the 20.7 hectare Camagico pipe, 5km south of Camatchia, as part of its development of the Luo project.
The company has begun construction of a new medical clinic in the town
of Lucapa in Lunda Norte. The clinic will be staffed by DiamondWorks'
medical personnel and will provide services to both company employees and local residents. Bulk sampling of Sierra Leone Koidu kimberlite pipes to start in May Mr Friedland said that work in Sierra Leone is progressing on
preparations for the start of bulk sampling from the Koidu kimberlite pipes in May as part of the project's final feasibility study. Work is nearing completion on the removal of accumulated silt from the existing mining pits over the two Koidu pipes. The pits are now being surveyed in preparation for drilling and blasting. Approximately 10,000 tonnes of kimberlite will be mined and processed from each of the two pipes. The total bulk sample is expected to yield 10,000 carats of diamonds for independent valuation. The sample also will provide important information for future mine development. A Sierra Leonean company has completed a baseline environmental
impact study. Workers have begun erecting the new, 20 tonne an hour Bateman DMS plant at Koidu. Crushers and sizing screens are being rebuilt to feed diamond-bearing kimberlite ore to the DMS plant.
(c) Copyright 1997 Canjex Publishing Ltd.
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