May 10, 2019

Newfield Resources Says FEED Study Indicates High Potential of Tongo Project in Sierra Leone

Newfield Resources Limited, announcing the results of its recently completed Front-End Engineering Design (FEED) Study, said that the company’s Tongo Mine development in Sierra Leone has been definitvely established as a technically robust and strongly economic development.

The Company revealed that there was an Initial Probable Reserve of 1.1 Mcts from shallow zones of Kundu and Lando kimberlites and that Reserve model forecasts indicate an initial 8-year life with peak annual diamond production of 260,000 carats.

The study has indicated an average realised price of US$ 222/ct and forecast unit opex of US$ 115/ct (both real basis)

Further, it has indicated a high life extension and expansion potential targeted to be realised from infill drill program to upgrade Inferred Resources at Kundu, Lando and Tongo D-1 (5.3 Mcts total, +1.0mm cut-off) and suggested targeted exploration across 7 other kimberlites not currently at resource status.

Newfield Executive Director, Karl Smithson, commented: “The very high-grade and high-value diamonds of the Tongo kimberlites, combined with the considerable process and support infrastructure already on site, are key drivers of the strong forecast margins and short lead time to first diamond production. The Newfield team is confident that Tongo is a generational project.”

The company will now plan for further investment in infill drilling, planned to be concurrent with project construction, in order to upgrade large-scale Inferred Resources to Indicated status, with targeted eventual conversion of that material to Ore Reserves. “We strongly believe in the potential of the Tongo Mine development to concurrently deliver sustainable economic and social benefits to our local communities, and the broader populace of Sierra Leone.”

Newfields said it hopes to progress towards targeted project funding and FID in the second half of 2019.