DIAMOND PAGE — Messina collecting bulk samples from prospect in Lesotho

Junior Messina Diamond (MSC.U-T) has received encouraging results from the first phase of exploration at its Liqhobong project in the south African country of Lesotho.

The project consists of two kimberlite bodies (the 9.5-ha Main pipe and the 1.6-ha Satellite pipe), which are connected by a 1-metre-wide fissure. Three other kimberlite bodies are known to exist on the property.

The entire 2,162-kg sample of drill core (including duplicates) from the 1.6-ha Satellite kimberlite pipe has been completed, giving an indicated grade of 138 carats per 100 tonnes for diamonds exceeding 1 mm. Based on the preliminary tonnage calculation of 4 million tonnes to a depth of 125 metres, Messina estimates the inferred resource in the Satellite pipe to be 5.52 million carats.

Treatment of 2,772 kg (representing about 75% of the sample currently being processed) of drill core from the 9.5-ha Main pipe has been completed as well, giving an indicated grade of 49 carats per 100 tonnes. Based on the preliminary tonnage of 26 million tonnes to a depth of 125 metres, Messina considers the inferred resource in the Main pipe to be 12.74 million carats.

Scoping studies indicate potential for an initial open pit at each pipe, to a depth of 125 metres and with minimal waste stripping.

Since 1979, a local co-operative has mined the Liqhobong property, using unsophisticated processing techniques. The co-operative recovered an aggregate of 33,300 carats from 1979 to 1994 at an average value (before government royalties and export taxes) of US$70 per carat.

The second phase of bulk sampling, now under way, calls for the treatment of 40,000 tonnes from the Main pipe, 8,000 tonnes from the Satellite pipe and 2,000 tonnes from one dyke and two blows on the property. Messina says the sampling will ensure that a fully representative parcel of diamonds will be recovered from each kimberlite type on the property for grading and valuation purposes. Further delineation drilling on both pipes will also be conducted.

Contracts for the bulk sampling have been signed, and a 15-tonne-per-hour dense media separation plant will be transported to the project.

The plant will begin treating kimberlite from the Main pipe in May, and a feasibility study is scheduled to commence in the fourth quarter.

In 1996, Messina treated a 1,490-kg portion of a bulk sample from the Satellite pipe and a 574.9-kg portion of a bulk sample from the Main pipe.

The value of diamonds from the two pipes averages US$52 per carat (after deducting export tax of 15% and a 10% royalty to be paid to the government).

Preliminary scoping studies have led Messina to believe Liqhobong has potential to produce 800,000 carats per year. A feasibility study is due by year-end.

Messina operates two fissure diamond mines in South Africa. During the 12 months ended June 30, 1996, production from Messina’s Star mine amounted to 8,000 carats at an average selling price of US$117 per carat. From its Messina mine, the company produced 30,600 carats at US$185 per carat.