The Ministry of Mines in Conakry has renewed the Mandala mining license as from 17th October 2013 for a further period of five years to the company.
Stellar Diamonds chief executive Karl Smithson said the mining license renewal at Mandala will allow the company to resume mining and generate cash flow.
"Based on the previous mining rates a further 200,000 carats are modelled to remain in resource and there is significant potential for additional untested channels," Smithson added.
In accordance with the Mining law, the license was reduced in area and includes a total of 5km2 on the diamondiferous valleys of the Mandala and adjoining N’Keleyani rivers, as part of the renewal process.
"Following the improvement in the rough diamond market, the Board is currently considering funding options at the project level which would enable the Company to bring Mandala back into production in early 2014," Smithson continued.
"Separately, the bulk sampling which forms part of the project feasibility study at the Tongo kimberlite dyke project in Sierra Leone is on going."
