Exploration company African Diamonds said that within weeks the company should be producing diamonds from their pilot mine in Koidu, Sierra Leone, to be followed by production from the projected trial mining project in Kolo, Lesotho. Currently the company is active in Botswana, Sierra Leone, Guinea and Lesotho
Announcing the company's results for the six months to 31 December 2003, Chairman John Teeling said that African Diamond's exploration work has found diamonds from drilling in Botswana and sampling in Guinea.
'In both Botswana and Sierra Leone, we have discovered diamond indicator minerals in areas with no known history of kimberlites. Kimberlite is a rare type of volcanic rock in which the vast majority of the world's diamonds are found'.
Teeling added that this month, in Sierra Leone, the company will commence a 10,000 ton pilot mining project on Pipe 3 in Koidu. In Lesotho, the company is at the final permitting stage in their 55% owned Kolo project.
'If the permits arrive, we will complete the refurbishment of the existing plant by end June, after which we will commence a 30,000 ton trial mining project', Teeling said.
In Sierra Leone, the company has mapped over 12 kilometres of kimberlite dykes on their licences EXPL 10/2002 and EXPL 8/02. The dykes average 1 metre in width. A detailed bulk sampling programme will be undertaken, with the material being processed through African's pilot plant at Koidu.
In February 2004 African Diamonds listed on the Botswana Stock Exchange and have recently obtained local Asset status which makes it easier for Botswana investors to buy its shares.
For the six months to December 2003, the company said that operating costs for the period were £63,000 and the loss before taxation was £62,000. This translated into a loss per share of £0.11p.
