DIAMOND PAGE — Study gives Liqhobong project thumps-up

With a positive prefeasibility study in hand, Messina Diamond (MSC.U-T) plans to continue with sampling programs in order to complete a bankable feasibility study for its Liqhobong diamond project in the southern African kingdom of Lesotho.

The prefeasibility document completed by Fluor Daniel Southern Africa indicates that a diamond mine could be built at Liqhobong for about US$52 million over an 18-month period. Initial feed would come from the Main and Satellite pipes, both of which have been sampled extensively since last summer.

The sampling program at the 1.6-ha Satellite pipe is now complete. A total of 6,098 carats were recovered from the 8,871-tonne sample, representing a recovered grade of 68.74 carats per hundred tonnes.

The parcel of diamonds from this pipe was found to have an average value of US$38.50 per carat.

The 9.5-ha Main pipe has been tested by a 12,722-tonne sample, representing about 30% of the planned sample weight from this pipe. The initial sample yielded 2,061 carats, representing a recovered grade of 16.2 carats per hundred tonnes. A recent evaluation of these diamonds indicated an average value of US$63.93 per carat.

Fluor’s study recommends that the proposed open-pit mine operate at 7,200 tonnes per day (2.6 million tonnes per year), initially blending ore from both pipes. After six years, the mine could be expanded to treat 12,000 tonnes per day from the Main pipe only, at an estimated capital cost of US$20 million.

Diamond production would be about 700,000 carats annually over a project life of about 11.5 years. Gross annual revenues are projected to average about US$40 million. Project operating costs are estimated to be US$4.43 per tonne, which would place Liqhobong among the lowest-cost diamond producers in southern Africa.

This year, Messina plans to complete the sampling program at the Main pipe, as well as the bankable feasibility study. The company currently produces about 37,000 carats per year from the Star and Messina mines in South Africa.