DIAMOND PAGE — Bulk sample yields two gems for Ocean Res.

Ocean Resources (OCR-V) has recovered a pair of gem-quality diamonds from its Sunda Shelf joint-venture project off the coast of Kalimantan, Indonesia.

A bulk sample consisting of 2,900 cubic metres of gravel was taken 1,500 metres off the southern coast of Kalimantan. The diamonds, which weighed in at 0.2 and 0.18 carat, were recovered from the company’s on-ship plant.

The sample was extracted from an area measuring 85 metres in length and 25 metres in width. The thickness of the basal gravels ranged between 1 and 1.85 metres, and 191,500 cubic metres of overburden was removed in order to access the gravels.

The company planned to excavate a 100-metre-long sample trench, but was forced to terminate the program after 85 metres in order to return the leased dredge to its Thailand-based owners.

Distinguishable faceted industrial diamonds were introduced at different stages of the recovery process in order to assess the plant’s efficiency in recovering diamonds.

Although the dredge adequately excavated the samples, the process is said to be time-consuming and, at a leasing fee of US$300,000 per month, costly. As a result, Ocean will not renew the lease on the dredge when it expires in January.

All equipment installed on the dredge, including the recovery plant, is being removed, and will be stored pending a decision on future exploration of the project area.

Preliminary tests conducted on subsamples measuring minus 1.5 mm confirmed the presence of heavy minerals rutile and gold. Examination of those samples continues, and the final results will be correlated with results of regional and infill drilling, as well as bulk sampling.

Ocean’s partner there, Trans Hex International (THI-T), is earning a 51% interest in the joint venture, and has spent US$6 million on the project to date. Ocean holds a 42% interest in the project, whereas Indonesian firm PT Indo Teras Intan holds a 7% carried interest up to the completion of a feasibility study.

Trans Hex and Ocean are now required to fund the joint venture on a pro rata basis, or to dilute their interest. Ocean has said that it will maintain its 42% interest.