Stellar Diamonds plc, the diamond development company focused on West Africa, announced its unaudited interim results for the six months ended  December 31, 2014 on Friday.

In this period, Stellar invested US$0.9m to build and commission the trial mining operation at the Baoulé Kimberlite Pipe Project, Guinea. 

The Company reported that “Administrative costs reduced significantly to US $0.9 m during the 6 month period (H2-13: US$ 1.5m)”.

On the other hand, the Company raised funding worth  US$ 1.05m   in the period through the issue of equity and credit. It held cash and diamonds for sale of US$ 0.5m at period end.

Post the period of the report Stellar raised a further US$ 1.55m through the issue of equity in January 2015.

The Company reported that at   Baoulé trial mining commenced on schedule and on budget in October 2014 and has reached target capacity of 50 tonnes per hour processed. Gem quality diamonds up to 9 carats in size have been recovered from the site, Stellar reports.  “Maiden sales and gross revenues totalling US$417,122 from 4,414 carats post-period (including goods from other Stellar projects)” have been achieved the Company says; it also expects further exports and sales to take place.

At the Tongo Kimberlite Dyke-1 Project in  Sierra Leone a bulk sampling programme was completed which generated  1,182 carats of diamonds. There is a 35% increase in inferred diamond resource to 1.45 million carats and 37% increase in average diamond grade to 165cpht, based on bulk sampling data, the Company announced.

 “Stellar has made significant progress at both Baoulé in Guinea and Tongo in Sierra Leone during the report period,” commented Stellar Diamonds’ Chief Executive Karl Smithson. “Bringing Baoulé into trial mining production during the Ebola crisis was a remarkable achievement and it is pleasing to see our first export and sales cycle being successfully completed. Processing to date has yielded over 4,100 carats at a grade of over 13cpht. We expect to continue the trial mining with an objective of at least 100,000 tonnes being processed in aggregate to establish the grade and value of the pipe with confidence, but importantly to recover some large, high value diamonds that the Aredor area of Guinea is world renowned for.”

He continued: “At Tongo we also successfully completed our bulk sampling programme despite the Ebola outbreak. As a result the inferred diamond resource for Dyke-1 was increased to 1.45 million carats with increasing grade and diamond values. A surface mining study has also been completed, which identified a technique that is expected to allow us to mine from surface for three years whilst underground mine development is completed. This positively impacts on expected project economics and we intend to conduct an updated preliminary economic assessment which should justify the decision to apply for a mine lease for the project during 2015.”