NML is due its interrim results now, last year it was the 28th of this month.

They are setting up a new site to explore/research/analyse and all the equipment to do this should be on site now, and drilling should start soon, all this extra news should be covered in the interims.

does anyone have any further positive views on this company ??

Does anyone have a figure for the ratio of diamond bearing to commercially viable kimberlite sources?

I'm sure I found it once but can't remember the figure........not being lazy, just time at a premium at the mo.

stringy..this article gives it as 1%
"kimberlite is a likely source for the alluvials "...lol..sure you understand this business ?

De Beers, the diamond giant, says it wants to move quickly to sample potential diamond bearing rocks in Angola. It has, nonetheless, warned that it will take years to begin production, less than a month after re-opening its office in the war-torn country. "It's very difficult to say how long it's going to take," Charles Skinner, the general manager of De Beers Angola, has said.

De Beers, which is 45% owned by London-listed miner Anglo-American, pulled out of Angola in 2001 after the government demanded it renegotiate its concessions. Skinner said De Beers is moving fast to complete exploration in its concession area. "You've got to build a team from scratch. But if I have anything to do with it we're going to do it in record time," he said.

Rising global diamond prices, limited supply and the end of Angola's 27-year civil war, has sent exploration companies flocking to Angola. Already sub-Saharan Africa's second-largest oil producer, Angola is also seen as potentially one of the world's biggest gem producers.

The country's rivers contain massive alluvial diamond deposits that have been washed over several millennia. However, geologists have yet to find major gem deposits in shafts of volcanic rock, known as kimberlites, that originally carried the stones up from where they are formed deep underground.

De Beers holds a concession to explore 3 000sqkm of Angola's diamond-rich north east, all the government would allow it to keep out of a pre-2001 concession totalling 66 000sqkm. Skinner was, however, optimistic that De Beers would find what it was looking for. "We went for the area where we knew we had 50 kimberlites," he said.

Drilling rigs
De Beers is bringing in several large exploration drilling rigs to begin sampling the kimberlites, but first they will have to dig through some 200m of sand, Skinner said. Aircrafts with special detection systems are looking for more kimberlites, he added. "Normally, only one in 100 kimberlite pipes is a mine," Skinner said. "But in Angola, it's probably a lot higher. The rivers are flush with diamonds and they must have come from somewhere."

It would probably take two to three years to complete surveying the concession area and then another two years or so to clear the sand to create a firm base for mining operations, Skinner added. "Nobody has ever done this before," he said. "No-one's ever gone looking for, or tried to mine, kimberlites under 200m of sand. We'd love to find some shallower, but until we do we're stuck with what we've got."

De Beers will own 49% of exploration and mining operations and the rest will belong to state diamond firm Endiama. Battle damage and neglect has left Angola's road and rail network all but destroyed, leaving communities isolated, food shortages rife and commercial agriculture in ruins.

If De Beers found a mine, it would likely have to help rebuild the road network to the diamond rich Lunda provinces, Skinner said. "Oil is basically an offshore industry," Skinner said. "It's mining that is going to contribute most to the development of Angola's interior." - Reuters

Stringy,

It is extremely low, Botswana has a higher chance of success, and the article above suggests Angolan kimberlites have a better chance too.

takahe,

I suggest you read my question again.

I have already stated that I'm well aware of the ratio of commercially viable kimberlites to non.

My question was what percentage/ratio of DIAMOND BEARING kimberlites are commercially viable.

Gold star for the most interesting thread of the day (give us a break from SEO, streuth!) Thanks for the thoughts and info Andy, Takahe, Stringy.

sd

stringy,

Don't worry, I understood what you meant!

It's one percent, although they THINK there's a better chance than that in Angola, as the De Beers quote from the article suggests;

----------
""Normally, only one in 100 kimberlite pipes is a mine," Skinner said. "But in Angola, it's probably a lot higher."
----------

So even De Beers aren't sure at this point, and it's interesting that even Petra haven't declared the grades for their nearby kimberlite!

stockdog,

Thanks, it's nice to have a proper exchange of views, after all the market needs both bulls and bears.

Still no answer then?

So far all I have found is this piece-

"De Beers' current 47 million carats of diamonds a year are now sourced entirely from South Africa, Namibia, Botswana and Tanzania or bought from Russia's state-owned diamond company.

Recent exploration in Angola had also shown the presence of more than 60 shafts of kimberlite, the volcanic rock that pushes diamonds close to the surface, she said. On average, experts say one in 10 kimberlite pipes can be mined."

So 1 in 10 for Angola. I wonder what percentage of diamond bearing kimberlites in Angola are economically viable?

Answers on a postcard please!

stringy....I understand your question. I had to ask about it myself recently and Andy ,and an article I've read ,say it's about one per cent. I know that seems very low...but that's what it seems to be.For Angola, it may be higher but no real idea because it is in its 'infancy' after all the wars etc...

Stringy..some interesting info here..http://www.mbendi.co.za/indy/ming/dmnd/af/an/p0005.htm

Overview (

Angola has extensive diamond reserves (estimated at 180 million carats), principally in the provinces of Lunda Norte and Lunda Sul in the central and northeastern parts of the country. To date, approximately 700 kimberlites have been located in the country. Most of the diamond rich kimberlites are located along a north east - south west trernd that extends in to neighbouring DRC. Diamond production generates over $650 million annually, although exact numbers are uncertain due to the amount of illegal diamond mining and smuggling.

In 2003, Angola sold between 5,3 Mct and 6 Mct worth of diamonds, at a value of about US$1 billion, through Sociedade de Comercializacao de Diamantes de Angola (Sodiam). Angola produced an estimated 5.5 million carats in 2002 (officially). Almost all of this production was from alluvial and kimberlite deposits in the Catoca, N'Zagi, and Lucapa regions. Developing projects that also produced include the Calonda, Mufuto, Luo and Cuango areas.

Most of the diamondiferous lands are located within territories controlled by rebel Unita forces. The war has resulted in a decline in outputs. Diamond smuggling will continue to remain a major problem until such time as the Government can gain control of rebel-held areas and impose a strict policy with stiff penalties imposed on violators in order to deter smuggling.

Kimberlite mining would be able to place more control on smuggling and production than the current alluvial methods. However, capital outlays for the development of a kimberlite mining operation are extensive. Only foreign investment can provide such capital, and only under an agreement with Endiama, the state owned diamond mining company.

Government approved the opening of Angola's second kimberlite mine, Camafuca, to SouthernEra in 2002. Development of Angola's third kimberlite Camatchia -Camagio was granted to a joint venture with similar equities as Sociedade Miniera de Catoca. Petra Diamonds in a joint vaneture with BHP Billiton is exploring the Alto Cuilo kimberlites in the Northwest of the country. During 2003, Petra Diamonds Ltd and its Angolan partners, Empresa Nacional de Diamantes de Angola (Endiama)and Organizacoes Moyoweno, began drilling diamondiferous kimberlites on their Alto Cuilo diamond project in northeastern Angola.

There is also scope for developing small business in the diamond-cutting industry, and in the artisinal exploration for gem-stones or industrial diamonds. Angola must, however, diversify from both petroleum and diamond mining in the medium-to-long terms in order to achieve sustainable development.

In August 2003, the government ended the monopoly of the state-controlled diamond marketing firm, Ascorp, which until then had the sole right to market the countrys diamonds. Sodiam, which has 51% control of Israeli diamantaire Lev Levievs Ascorp organisation, took over the marketing of gems produced by larger producers in the formal sector, in partnership with local and foreign companies, creating a semi-open market regulated by the state.

In an attempt to regulate its diamond market, the Angolan government have introduced several steps to control diamond trade. New legislation has been passed stating that all buying and selling of Angolan diamonds was to go through state owned company Sodiam (part of the Ascorp joint venture with Israeli businessman Lev Leviev). Attempts at licesning the estimated 350 000 artisinal miners has also begun. Les Leviev has had a long history in Angola's diamond sector. He began by part financing the Catoca diamond mine, Angola's largest producing kimberlite mine, whose owners (Endiama, Odebrecht and Alrosa) requireed an additional $25 million financing. At that stage, the only person who was brave enough (in light of the iminent collapse of the Lusaka Peace accord) to put up the money was Leviev. It is not sure whether Ascorp's unified marketing system will keep Angola's diamond production "conflict free".

Alluvial Diamond Mining

Apart from the numerous artisinal workings scattered throughout the Lundes, some commercial operations are producing good quality stones, despite extensive smuggling and security threats.

Sociedade de Desenvolvimento Mineiro de Angola, S.A.R.L. (SDM) is a joint venture with Endiama (50%) and Odebrecht (50%) to exploit the Tazua deposit at its Luzamba project. Field exploration investigating further alluvial deposits continues, despite numerous withdrawals of personnel due to the security situation. Bulk sampling of river terrace gravels in the vicinity of the Ganzo, Tua and Ginge river diversions have revealed economic diamond grades. SDM produced a total of 419 000 ct in 2001.

Southern Era has discontinued its alluvial mining programs along the Cuango River, which produced 144 300 carats in 1998.

America Mineral Fields holds the Luremo and Cuango licenses with Endiama. These two licenses cover the northen half of the Cuango Basin, historically a major producer of Angola's diamonds. Based on the security situation in the country, no work has been carried out, although AMF are keen to begin development once the situation is controlled.

Sociedade Mineira do Lucapa (SML) was formed in 1992 as a company representing Endiama (51%) and Sociedada Portugese de Empreendimnetos (49%). SML has invested significantly in the development of several projects in Angola, including exploration concessions totalling 35 000 km2. SML, along with operators ITM Mining operate several alluvial concessions in the Lundes, viz the Calonda project that produced 199 000 ct, the Mufuto project that yielded 244 000 ct and the Lucapa project 69 000 ct in 2001. SML also holds a 15% interest in Southern Eras Camafuca project and 50% of DiamondWorks Yetwene project.

Another major alluvial diamond producer is Associacao Chitotolo that is owned by Sociedada Miniera de Lumanhe (15%), ITM Mining (50%) and Endiama (35%). Chitolo produced 232 000 ct in 2001.

Kimberlite Production

The Catoca Mine is the worlds 4th largest kimberlite and is currently being operated by SMC (Sociedade Miniera de Catoca), which is in turn owned by Endiama (32.8%), Russia's Alrosa (32.8%), Brazils Odebrecht Mining (16.4%) and the Diamond Finance CY BV Group (18%). The mine produced just over 2.6 Mct in 2001. The kimberlite yields quality diamonds, of which 35% is gem quality, fetching prices of around $75 - $100/carat. Reserves are estimated at 60 million carats. SMC intends increasing production to as much as 5 Mct per year.

DiamondWorks, through its wholly owned subsidiary, Branch Energy, has numerous interests in Angola, including alluvial and kimberlite operations. DiamondWorks operated the Luo and Yetwene kimberlite mines. The Camatchia and Camagico diamondiferous kimberlite pipes are also located within DiamondWorks license areas. The Luo mine began production in 1997 and has produced almost 200 000ct, with diamonds fetching between $120 and 350/carat. The largest diamond recovered to date has been a 232.6 carat stone. The Yetwene mine began production in June 1998. Exploration activities on this property have been suspended due to the security situation. DiamondWorks have alluvial concessions in and around the kimberlite operations, including the Luarica property (North of Luo) and the Alto Kwanza property in the Bie province of central Angola. The Alto Kwanza concession is Diamondworks largest, with an area of 18 000km2.

Southern Era is currently investigating the Camafuca - Camazambo kimberlite pipe in the Calonda area of the Lunde Norte province. Camafuca is estimated to be the worlds largest undeveloped diamondiferous pipe with a surface area of 160 hectares. The pipe is approximately 3.3 kilometres in length and 500 metres in width, and lies 40 kilometres north of the Luo concession on the Chicapa River. Camufuca was the first kimberlite pipe to be discovered in Angola. Recent sampling of the Camafuca pipe yielded just over 1000 carats from a bulk sample of 3 500 m3treated. This represents a significant increase from previous historical estimates. Grades ranged from $126 - $140/carat, with 32% of the diamonds being greater than 1 carat in size and 21% greater than 2 carats. A feasibility study to evaluate the technical and economic viability of the project is essentially complete and was presented to the Camafuca partners in April, 2000. Plans are to develop the higher grade portions of the pipe first - an exercise that is estimated to cost $14 million. The partners have accepted the feasability study and now plan to move ahead with the development of Phase 1 that intends developing the southeastern part of the kimberlite that contains 6.1 million cubic metres of material at an average grade of 0.18 carats per cubic metre. Mining of Camafuca has been complicated by a major river that dissects the kimberlite - initial mining will utilise dredging methods. Ownership of the project is outlined as follows: SouthernEra Angola LDA 32%, followed by Endiama 20%, SML 15% and the Welox Limited 33%. Welox Ltd is part of the Leviev Group of companies . In mid 2002, the Angolan Government formally approved the operating agreement and formation of the operating company, to be called Sociedade Mineira do Angola, Lda (SMC).

Kimberlite and Alluvial Exploration

Several foreign companies have been carrying out exploration programs in Angola, including De Beers, Botswana Diamondfields, Amcan, American Mineral Fields and Petra Diamonds.

De Beers has been given approval by the Angolan council of ministers to prospect for five years on three prospects covering a total of 63,000 km2 in the Quela, Mavinga and Lunda Norte areas of the country. The company plans to spend $ 75 million on this venture. In June 1996, De Beers and Endiama signed new prospecting agreements. De Beers Consolidated Mines has started drilling for kimberlites on its three concessions near Saurimo in Lunda Norte province, the first drilling De Beers has done for diamonds in Angola since the country's independence from Portugal in 1975. De Beers also has concessions at Mavinga in the southern Cuango Cubango province and at Quela off the Cuango River valley. These concessions await progress in ending the civil war. De Beers and Endiama uncovered two kimberlites north of Saurimo near the Catoca mine of northeastern Angola. The pipes were intersected below a considerable depth of tertiary and quaternary sediments. Despite these involvements in the Angolan diamond sector, De Beers has decided to pull out of Angola, following a breakdown with Angolan authorities.

Botswana Diamondfields Inc, a subsidiary of the Crew Development Corporation of Canada, has entered a joint venture with Gema Dourada Ltd. (GDL) to explore a 13,230 km(SUP>2concession in the northern parts of Lunda Norte province. A pre feasibility study indicates a resource of 1 Mct at a grade of 0.4 0.7 ct/cubic meter.

AmCan purchased 100% of Oriole Marketing Limited, whose holdings include four major diamond-bearing properties:

the Tejok Diamond Concession, covering 114 km2;
the Grupo W Concession, covering 64 km2;
the Four River Diamond Concession, covering 8,200 km2;
and the Quilemba Property, covering 15,000 km2.
All of these concessions are located within the Lunde Norte Province.

Randsburg International Gold Corporation has acquired an interest in the Louva concession in the Lundes from Gema Dourada. American Mineral Fields' Angolan subsidiary Idas Resources, has announced a joint venture with Endiama over two concessions located in the Provinces of Lunda Norte and Malange. Licences cover areas of the Cuango River floodplain up to the border with the DRC as well as ground to the north of the town of Cafunfo. These concessions contain defined alluvial occurrences, such as the Camutue alluvial resource, as well as good potential for primary kimberlite deposits. Trans Atlantic Enterprises has reached an agreement for 50% of the Camuanzanza pipe in the Lundes. The company is required to spend $5 million on the project.

Up and coming Australian junior mining and exploration company, Majestic Resources have an option to acquire two concessions on the Luachima River. Following an evaluation of the alluvial resources on the river in 2000, Majestic has suspended work on the project until the Angolan operating company, Opala Majestic Diamonds, has been granted a diamond selling licence. South African based Petra Diamonds are evaluating three concessions for alluvial and kimberlitic potential, viz. Alto Cuilo, Muriege and Medio Kwanza.

Participating Organisations

Almazy Rossii-Sakha

Alrosa has a 32.8% interest in SMC that operates the Catoca kimberlite mine

Ashton Mining Ltd

Ashton are developing the Cuango River alluvial project as well as evaluating the Bapsil prospect in Angola.

Endiama (Empresa de Diamantes de Angola)

Endiama is involved in all offficial aspects of diamond exploitation in Angola.

Leviev Group

New Millennium Resources NL

Odebrecht Angola Ltd.

Odebrecht has a 32.8% interest in SMC that operates the Catoca kimberlite mine

Southern Platinum Corp

Southern Era has a 32% interest in the developing Camufuca kimberlite mine.

Thanks takahe,

Seems that the figure quoted in my last post is only guesswork and may well be over optimistic. So, all in all quite a long shot really. Unless NML are privvy to any info from any past exploration work on this kimberlite which I'm doubful will be the case.

Good thing I have only a 'punt' sized stake here...................no great loss if I lost it all but great if all comes good.

stringy..best I can find is this reference
http://www.bhpbilliton.com/bbContentRepository/Presentations/IRDSJuly04.pdf

if you go to p15, it gives a diagram about economic kimberlites

Added a few nml at 2.69p today.

We know already that they have alluvial gems.
They too wish to make profits so would not have switched emphasis
from those to kimberlites if they were not optimistic about the latter.

If their optimsim proves misplaced alluvials still apply;
throw in their 20% free ride in Greenland and the reason for
my remaining happy to hold is clear.

The negatives atm appear to be:
1. No news for almost 2 months - hardly a patience testing investing time span
2. BB rantings by some - simply boring and irrelevant
3. SP falling - accounted for by 1. and possibly 2. so imho buying opp.

DYOR

may,

I agree entirely with your comments there.

takahe,

Thanks for that link.........question answered!

Worldwide

10% of kimberlites are diamond bearing.
3% of kimberlites are economically viable.

If I'm understanding these figures correctly then that gives a figure of 30% (3 in 10) of DIAMOND BEARING kimberlites which are economically viable - a long way from 1 in 100!

And this is the Worldwide figure NOT Angola.

The reason I asked is because I believe this kimberlite is the most likely source for the alluvial diamonds on the concession so I have little doubt that it will be found to be diamondiferous...........it's more a question of the chances of it being economically viable to mine. As the gem quality of the alluvials is known to be good then I think we have a pretty good chance. I for one do not believe the management are either crooked nor stupid and am 100% behind their decision to switch to kimberlite prospecting with great urgency.

Thanks lots takahe!

stringy,

So thats a 3% chance then, not 30%!

Check the maths again!

"3% of kimberlites are economically viable."


IMHO the question to ask is where is the production from the three months production from April to June?

According to the RNS they did three months production!

Checked the maths Andy and I cannot understand where your 3% comes from.

10% of kimberlites are diamondiferous.
3% of kimberlites are economically viable.

Non of the 3% of economically viable kimberlites fall into the 90% of kimberlites which are non diamondiferous (ever heard of non diamondiferous kimberlite being economically viable?).

Therefore 30% of diamondiferous kimberlites are economically viable.

I am missing something here?

morning stringy...I think what it means is that :
of all kimberlites, only 10% are diamondiferous at all ie 90% aren't
what is not clear, to me, is whether the data means that 3% of ALL kimberlites are
economically viable, or whether it is 3% of that 10%.
If the latter, it would only be 0.3% of ANY kimberlite being diamondiferous
If the former, it is 3%...

Good diagram and explanation here of diamond formation..
http://dedi36a.your-server.co.za/diamond/geology.html