West Africa-focused Stellar Diamonds' (LON:STEL) shares rose after it confirmed further high diamond grades had been returned from the bulk sampling programme under way at its 1.1 million carat Tongo dyke kimberlite project in Sierra Leone.

Highlights included:

- Initial sample processing yielded 151 carats from 141t of kimberlite for a grade of 107cpht with further results expected approximately every four weeks

- Anticipated that diamond grade will increase as further diamonds are recovered following re-processing

- Outstanding quality of diamonds classified as 86% gem quality with several stones greater than 1 carat in size

- Bulk sampling on-going with 772 tonnes collected to date as part of the Dyke-1 mining DFS

- Objective to recover a minimum 1,000 carat parcel for diamond grade and value confirmation

- Previous results established a grade of 120cpht at US$248 per carat from a 1,050 carat parcel

- Definitive Feasibility Study ("DFS") expected to be completed in 2014, culminating in a production decision at Tongo Dyke-1

I'm in ..worth a punt... let's see what happens!

24 March 2015
AIM: STEL

Stellar Diamonds plc
("Stellar" or the "Company")

First Diamond Sales and Revenues

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, is pleased to announce that it has sold 4,414 carats of diamonds in Antwerp for gross revenues of US$417,122. The sale included excellent quality white stones, with a value of US$5,000 per carat achieved for one particular five carat stone.

The Company withheld 1,617 carats from the sale as the bid prices were not considered acceptable. These goods will be added to future exports and be offered for sale at a later date.

The Company is pleased with the revenues generated from the sale in what remains a challenging market for rough diamonds. Future sales will be targeted for optimum selling windows with the next sale from Stellar's operations planned for May 2015. Further announcements will be made in due course as and when significant diamond exports or diamond sales occur.

About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond development company which has commenced trial mining of its Baoulé kimberlite in Guinea, and is progressing the 1.45 million carat Tongo Dyke-1 resource in Sierra Leone through a definitive feasibility study. In addition, Stellar holds the 3 million carat Droujba project in Guinea and continues to pursue diplomatic channels to ensure the proper reinstatement of its Kono licences in Sierra Leone.

** ENDS **

http://www.moneyam.com/action/news/showArticle?id=5001157

Stellar Diamonds chief pleased with maiden sale (+ Interview)
By Juliet Mann
March 24 2015, 1:42pm


Karl Smithson, chief executive of Stellar Diamonds (LON:STEL), says he is pleased with the results of its first diamond sale, which generated revenues of US$417,000.

The group sold a total of 4,414 carats, with a further 1,617 carats held back to be re-sold at a later date.

Smithson says the balance sheet remains strong thanks to regular diamond sales and the recent placing. He also tells investors to expect an update from the Tongo project in Sierra Leone in the coming months.

27 March 2015
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")

Interim Results for the six months to 31 December 2014



Stellar Diamonds plc, the AIM listed (AIM: STEL) diamond development company focused on West Africa, announces its unaudited interim results for the six months to 31 December 2014.

Operational Highlights

Baoulé Kimberlite Pipe Project, Guinea ("Baoulé"):

o Trial mining commenced on schedule and on budget in October 2014

o Trial mining has reached target capacity of 50 tonnes per hour processed

o Gem quality diamonds up to 9 carats in size recovered and first exports achieved

o Maiden sales and gross revenues totalling US$417,122 from 4,414 carats post-period (including goods from other Stellar projects)

o Further diamond exports and sales expected in 2015


Tongo Kimberlite Dyke-1 Project, Sierra Leone ("Tongo"):

o Bulk sampling programme completed generating a diamond parcel of 1,182 carats

o 35% increase in inferred diamond resource to 1.45 million carats

o 37% increase in average diamond grade to 165cpht, based on bulk sampling data

o 42% increase in the scoping study NPV10 to US$75m for surface and underground mine



Financial Highlights:

o US$0.9m invested to build and commission the Baoulé trial mining operation

o Administrative costs reduced significantly to US$0.9m during the 6 month period (H2-13: US$1.5m)

o Cash and diamonds held for sale of US$0.5m at period end

o US$1.05m of funding in the period through the issue of equity and credit

o Further US$1.55m raised post period through the issue of equity in January 2015



Stellar Diamonds Chief Executive Karl Smithson commented, "Stellar has made significant progress at both Baoulé in Guinea and Tongo in Sierra Leone during the report period. 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.



"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."



Chairman's Statement

Excellent progress has been made across our two core diamond projects in Guinea and Sierra Leone over the period. This has resulted in our maiden diamond sale and first revenues from Baoulé in Guinea, and an improved inferred resource, grade, and expected faster route to production at Tongo in Sierra Leone. These significant advances take us ever closer to our strategy of early production and targeting a future aggregate resource base of approximately 8 million carats across our diamond portfolio.



Baoulé Project, Guinea

Despite the backdrop of the Ebola virus and rainy season our team on the ground successfully established the trial mining operation at the 5 hectare Baoulé kimberlite pipe. Construction and commissioning of the 100tph Dense Media Separation ("DMS") plant was achieved on time and on budget in September 2014 with the first trial mining diamonds being recovered in October 2014. We have already recovered some impressive gem quality diamonds and we remain optimistic about the potential of the Baoulé pipe to yield large, high value stones. The pipe is located in the world renowned Aredor District of Guinea, where diamonds of up to 283 carats have been recovered from alluvial mining in the past and we believe Baoulé has the potential to be a "company-maker" for Stellar.



The DMS plant has reached its target capacity of processing approximately 50 tonnes of kimberlite per hour on average. At the time of writing trial mining has yielded over 4,100 carats at an average grade of 13.4cpht at a 1.25mm cut off. During recent mining the grade decreased slightly from the average of 15cpht as we encountered a lower grade breccia area towards the margin of the pipe mining and sought to extend the pit area in order to maximize access to the higher grade kimberlite which comprises the bulk of the pipe. We continue to target processing of at least 100,000 tonnes of kimberlite, which at an average target grade of 15cpht would be expected to yield at least 15,000 carats for grade and value determination.



Two diamond exports to Antwerp have been made to date; the first parcel delivered in December 2014 contained 941 carats and a second containing 1,250 carats was added to it in January 2015. The Baoulé diamonds were combined with 3,700 carats recovered from bulk sampling at our other projects and collectively tendered for sale in Antwerp in March 2015. This tender generated maiden diamond sales of 4,414 carats, making gross revenues of US$417,122. This is a major milestone for Stellar, bringing us our first cash flows of 2015. Notably, one of the five carat stones sold achieved a value of US$5,000 per carat, which the Directors believe underpins the quality of the diamonds in the Baoulé pipe which, if realised in still larger sizes, will enhance the diamond value and revenues of future sales.



The objective of trial mining at Baoulé is not only to create near-term cash flow but also to generate a sufficiently large diamond resource to justify a full scale commercial mining operation. In-house modelling of previous drilling over the pipe suggests a target of over 22 million tonnes to a depth of 300m. At an average target grade of 15cpht, this would suggest a diamond resource of 3.3 million carats. This is not a resource estimate or in accordance with the JORC Code.



Tongo Dyke-1 Project, Sierra Leone

Bulk sampling of the high-grade Dyke-1 was completed in the reporting period and generated a diamond parcel of 1,182 carats of which a large portion was categorised as gem quality, including a 6.7 carat stone. A revised resource statement was subsequently commissioned and this has resulted in a 35% increase in the JORC compliant inferred resource to 1.45 million carats and a 37% increase in the average diamond grade to 165cpht, using the higher grade established by the Company based on the results of bulk sampling. Diamond value modelling was also undertaken with two models being presented, one with a grade of 120cpht and diamond value of US$270 per carat and another with a grade of 165cpht and US$145 per carat. We conservatively use the lower grade model for all our financial modelling.



Further resource potential exists from the remaining three kimberlite dykes at Tongo. This includes Dyke-4 which has previously been bulk sampled by the Company, generating a diamond grade of 110cpht at an average diamond value of US$140 per carat. Dykes 2 and 3 have not been bulk sampled but microdiamond analysis indicates grades of 140cpht and 185cpht respectively for these kimberlites.



In line with delivering value for our shareholders, just as we found a route to early cash-flow at Baoulé, we intend to follow suit with a similar solution for Tongo. An independent surface mining study was carried out which has revealed that we can target accelerated cash-flow by mining Dyke-1 from surface concurrently with underground mine development, to generate cash-flow earlier than a stand-alone underground mine would. The surface mining is modelled to last for three years and potentially generate 120,000 carats, (assuming that average production rates and indicative grades achieved to date continue) after which underground mining is expected to commence to provide a seamless transition of production from surface to underground. The underground mining is modelled to continue to year 16 and generate almost 1 million carats over that time.



The inclusion of surface mining should significantly enhance Tongo's potential economics by bringing forward cash flows when compared to just an underground mining operation. The previously modelled NPV10 was re-calculated on this basis and shows an increase of 42% to US$75 million with a pre-tax IRR of 55%, using a diamond grade of 120cpht and value of US$270 per carat.



To bring Dyke-1 into production, the initial capex cost for the first three years has been independently estimated at US$16 million for both the surface and underground mining. However, as part of the project development process the Company will now re-engage with independent consultants to provide a single and updated preliminary economic assessment document as an alternative to a more expensive and time consuming definitive feasibility study which can be utilised for a future mine lease application with the Government of Sierra Leone.



Other Projects

As per my year-end statement, our two additional projects in Guinea remain on care and maintenance whilst we focus on delivering value at Baoulé and Tongo. That said, they should not be forgotten, as the high grade Droujba project adds 3.1 million carats to our resource inventory and it is estimated that 200,000 carats remain within the resource at the Mandala alluvial mine, where we have previously yielded 128,000 carats from mining at a grade of 33cpht with gems of up to 37 carats in size.



The process of reinstating our wrongly expropriated Kono licences is ongoing. It is hoped that a positive outcome will be achieved in the near future.



Corporate

In order to enhance the mining fleet on the newly operating Baoulé trial mining project we purchased a number of earth moving vehicles from our major shareholder, Foradex, on an arms-length basis, in return for the issue of 25,560,016 ordinary shares at a price of 1.55p and 12,780,008 warrants exercisable at the same price, thus conserving the Company's cash. We intend to ship these machines to Guinea and transport them to Baoulé in the near future.



In December 2014 we were also able to secure bridge financing of US$0.5m to provide working capital for the Baoulé project as we approached the first export of diamonds. Post-period, in January 2015, we raised further working capital of US$1.55m through the issue of 88,362,066 ordinary shares of 1p at a price of 1.16p per share to allow flexibility in the timing of our diamond tender in the first quarter of 2015 and to strengthen the Company's balance sheet. The placing was undertaken through existing and new institutional shareholders and shows continued strong support from our board and shareholder base.



We have continued to scrutinise our cost base to ensure that the maximum amount of funding is available for the projects on the ground and we are pleased to note the continued reduction on corporate and administrative spending during the period.



Diamond Market

The rough diamond market weakened during the latter part of 2014 and further weakened in the first quarter of 2015, meaning prices declined in some categories by as much as 15-20% compared to the summer of 2014. We believe this decline was a direct result of a lack of liquidity in the financing of diamond buying and a build-up of polished inventory. This will take some time to work out of the market but some stability seems to have reached the rough market prices and although not guaranteed, the second half of 2015 may see pricing improvements. Importantly, the longer term fundamental outlook remains positive for the diamond market as the declining supply will fail to meet the projected increasing demand.



Outlook

We are making great strides in advancing our key diamond projects which have multi-million carat potential towards production. Having created a defined path to trial mining with cash-flow being realised from diamond sales at Baoulé and with a compelling route to mine development which should achieve early cash flow identified at Tongo, this is an exciting time for Stellar.



Looking ahead, we remain committed to ensuring further cash flow from diamond exports and sales from Baoulé in 2015. At Tongo we intend to commence the process of applying for a mining licence with the authorities in Sierra Leone. This process will include conducting an environmental impact assessment and the updating and combining of existing technical and mining reports in order to support the mine lease application. Naturally for this process further funding will be required with the objective of raising up to US$20 million in aggregate to fund both the mining licence application and the Tongo mine development (with the majority of such fundraise expected to be subject to receipt of a mining licence). We will be considering the optimum ways of achieving this with the focus being on securing funding via non-dilutive project debt structures and we will report on the process we are to follow in due course.



I would like to take this opportunity to thank my fellow Board members and team on the ground for their outstanding commitment and efforts in continuing to deliver on the tremendous value Stellar has to offer. In addition, I am hugely grateful for our highly supportive shareholder base and I look forward to the year ahead as we aim to further unlock the value of our West African portfolio on our route to commercial diamond production.



Lord Daresbury

Non-Executive Chairman

For full details click link below:

http://www.moneyam.com/action/news/showArticle?id=5004088

Stellar Diamonds Interim Loss Narrows, Looking To Raise USD20 Million
Alliance News 27 March, 2015 | 8:40AM

LONDON (Alliance News) - Stellar Diamonds PLC Friday said its pretax loss narrowed in the first half of the year as costs fell but said it needs to raise a further USD20 million to progress the Tongo project in 2015.

The West African diamond miner reported a pretax loss of USD934,928 for the six months ended December 31, narrower than the USD1.5 million reported a year earlier, as administrative expenses fell. The company does not currently generate any revenue.

The company is advancing two diamond projects into production with a focus on imminent trial mining at Baoulé to generate early cash flow.

"We are making great strides in advancing our key diamond projects which have multi-million carat potential towards production. Having created a defined path to trial mining with cash-flow being realised from diamond sales at Baoulé and with a compelling route to mine development which should achieve early cash flow identified at Tongo, this is an exciting time for Stellar," it said.

For 2015, the company said it "remains committed" to ensuring further cash flow from diamond exports and sales from Baoulé and said it will apply for a mining license for the Tongo project, which will include conducting an environmental impact assessment and the updating and combining of existing technical and mining reports in order to support the mine lease application.

"Naturally for this process further funding will be required with the objective of raising up to USD20 million in aggregate to fund both the mining licence application and the Tongo mine development. We will be considering the optimum ways of achieving this with the focus being on securing funding via non-dilutive project debt structures," said Stellar in a statement.

Stellar Diamond shares were down 0.1% to 0.899 pence per share on Friday morning.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

Proactive weekly mining news summary - Rare Earth Minerals, Xtract Resources, Stellar Diamonds and Jubilee Platinum
By Giles Gwinnett
March 28 2015, 8:30am

Elsewhere, Stellar Diamonds (LON:STEL) expects to raise US$20mln in additional funding when it makes its licence application at Tongo.

Karl Smithson, chief executive, said the firm wants the funding to come from non-dilutive project debt structures.

Bulk sampling has been completed at the project in Sierra Leone, which has an inferred resource of 1.45 mln carats, despite the Ebola crisis.

Smithson said: “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.

1 April 2015
AIM: STEL

Stellar Diamonds plc
("Stellar" or the "Company")

Application for Mining Licence at Tongo Kimberlite Project, Sierra Leone

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that it has commenced the application process for a mining licence at its 100% owned 1.45 million carat Tongo Dyke-1 kimberlite project in eastern Sierra Leone ("Tongo"). This is as a result of the Company's decision to fast-track Tongo to production following recent positive resource definition work, mining studies and financial modelling undertaken by Paradigm Project Management ("PPM").


Highlights:

· Acceleration of the Tongo project, saving shareholder funds and reducing the time to production

· PPM to consolidate and update all previous technical reporting into a single Preliminary Economic Assessment ("PEA")

· Attractive economics for surface mining concurrent with underground mine development

· Estimated pre-tax NPV(10) and IRR of US$75 million and 55% respectively (120cpht and US$270/ct)

· Significant potential NPV and IRR upside using higher resource grade of 165cpht and US$270/ct

· Target of 120,000 carats production via surface mining in first 3 years

· Target of over 1 million carats mined in estimated 16 year mine life

· Low capital expenditure estimated at US$20 million to bring mine into production

· Funding primarily by debt structures being targeted

· Favourable response received from Sierra Leone stakeholders for decision to accelerate Tongo towards mine development



Chief Executive Karl Smithson commented:

"Moving Tongo to the mining licence application stage is a major milestone for the project. Having recently defined a faster route to production cash flow by the assessment of surface mining studies and based on the extensive resource and financial modelling completed to date, Tongo has clear economic potential. The application for a mining licence will be accompanied by updated mining and financial reports under a Preliminary Economic Assessment instead of a previously planned Definitive Feasibility Study in order to cut costs and seek to fast-track Tongo to production. Simultaneous to this we intend to establish a suitable financing structure to access debt funding for the majority of the US$20 million of capital expenditure which is estimated to be required to bring the project into production.

"We are delighted at the positive response received from various stakeholders within Sierra Leone. There is a clear will to support our efforts to build the next diamond mine in Sierra Leone, which can offer a significant and positive contribution to the post-Ebola social and economic reconstruction. We look forward to the full support of the Sierra Leonean Government in assisting our efforts."

More from link below:

http://www.moneyam.com/action/news/showArticle?id=5007701

UPDATE - Stellar Diamonds lodges application as it fleshes out Tongo fast track plan
By Philip Whiterow
April 01 2015, 12:44pm

--- ADDS SHARE PRICE AND BROKER COMMENT---

Stellar Diamonds (LON:STEL) has lodged its application for a mining licence at the Tongo Dyke-1 kimberlite project in eastern Sierra Leone as part of its new fast-track plan.

All of the data compiled so far on the 1.45mln carat deposit will also be pulled together for a preliminary economic assessment. This will be instead of a previously planned definitive feasibility study and will cut costs.

Tongo has a net present value (NPV) on current estimates on US$75mln assuming an average 120cpht [carats per hundred tons] and US$270/ct [per carat] price.

Stellar expects to increase that NPV value by targeting higher grade stones at an average 165cpht, with an initial target of 120,000 carats production through surface mining during the first three years.

It will cost US$20mln to bring the mine into production, to be funded by debt, with a target over the total life of mine of one million carats over 16 years.

Karl Smithson, chief executive, said: "Moving Tongo to the mining licence application stage is a major milestone for the project.

“Simultaneous to this we intend to establish a suitable financing structure to access debt funding for the majority of the US$20mln of capital expenditure, which is estimated to be required to bring the project into production.

"We are delighted at the positive response received from various stakeholders within Sierra Leone.

“There is a clear will to support our efforts to build the next diamond mine in Sierra Leone, which can offer a significant and positive contribution to the post-Ebola social and economic reconstruction."

Sanlam keeps its 'speculative buy' unchanged on the shares, targeting 1.86p.

"We believe that the Tongo and Baoule projects merit development (Baoule dependent on stone value) but are concerned about recommending a stock that needs equity in the current soft funding environment (for junior miners)," said analyst Charlie Long.

He added that Stellar's debt approach would minimse the dilution if successful, so long as the cost is not too high.

"Presumably a project level investor is also a possibility," added the analyst.

Stellar shares were unchanged at 0.85p.

A bit more publicity:

STELLAR DIAMONDS MAKES ITS FIRST SALES
07 April 2015


Stellar Diamonds Plc has recently completed its first tender of rough diamonds offered for sale in Antwerp. The company has reported sale of 4,414 carats, out of a total of 6,031 offered at the tender, for gross revenues of US$417,122.
The sale reportedly included excellent quality white stones, with a value of US$5,000 per carat achieved for one particular five carat stone.

The company withheld 1,617 carats from the sale as they found the bid prices offered for those goods were below what they considered acceptable. These goods will be added to future exports and be offered for sale at a later date.
The company has said that it is pleased with the revenues generated from the sale in what it describes as a challenging market for rough diamonds. Future sales will be targeted for optimum selling windows with the next sale from Stellar's operations planned for May 2015.

20 April 2015
AIM: STEL

Stellar Diamonds plc

("Stellar" or the "Company")



First 5,000 Carats Achieved from Trial Mining at Baoulé Kimberlite, Guinea

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces an operational update from trial mining at its 75% owned, five hectare Baoulé kimberlite pipe ("Baoulé" or "the Project") in Guinea.

Highlights:

· Trial mining has yielded a total of 5,087 carats to date at an average grade of 13.5 cpht

· High quality gems continue to be recovered, including stones of 12.6 carat and 10.0 carat

· First sale of 733 gem quality carats from Baoulé last month realised $195,000 for an average value of $266 per carat (which formed part of a larger sale of 4,414 carats)

· Included in this sale was a 5.55 carat stone which sold for US$5,000 per carat and several stones which exceeded US$1,000 per carat underpinning the high value and quality of some Baoulé gems

· Next diamond sale planned for May 2015

· Objective to recover a total of 15,000 carats to complete the trial mining phase and provide a basis for deciding whether to advance Baoulé to commercial scale mining

· JORC Resource to be confirmed on completion of trial mining. Current in-house estimate of 3.3 million carats based on previous drilling and average target grade of 15cpht



Stellar Diamonds Chief Executive Karl Smithson commented:

"Good progress continues to be made from trial mining at Baoulé. Our objective is to produce 15,000 carats from this exercise to enable us to determine the grade, value and presence of large stones in the pipe, with a view to using this information to consider a decision to advance Baoulé to commercial scale mining. It is pleasing that we have achieved our maiden revenues following the first diamond sale from Baoulé, as well as other Stellar projects. We are currently planning the next export and sale of Baoulé goods and remain committed to targeting additional diamond sales throughout 2015. I look forward to updating shareholders on progress as we continue the trial mining programme at Baoulé and in the process increase our cashflow."



Trial Mining Production and Processing

Trial mining of the eastern lobe of the Baoulé kimberlite pipe has continued during the first quarter of 2015. In order to maximise the pit area in preparation for the second 3m cut, mining progressed towards the eastern and southern margin of the pipe where a lower grade contact breccia was recently encountered, reducing the average grade to 13.5cpht at a 1.25mm cut off. This has resulted in fewer carats being produced than anticipated at this point in time, but mining and processing of the second cut is expected to see a return to higher grades, based on the results realised from the first cut of the lobe.


Simultaneous to this mining, stripping of the western lobe of the pipe has commenced in advance of the rainy season. Overburden and ground disturbed by diamond diggers is currently being stripped to access the uncontaminated kimberlite in preparation for bulk sampling.


The processing plant is running at a steady state average capacity of approximately 50 tonnes per hour over a double shift (16 hours). The kimberlite material remains predominantly weathered, however some harder blocks of kimberlite are being encountered. Since these blocks are too hard to scrub but are also too soft to efficiently crush, they are being sent to an oversize stockpile where they are broken down with an excavator prior to being re-fed into the plant to ensure maximum diamond liberation and integrity of results.

The overall objective of the trial mining exercise is to produce up to 15,000 carats for grade and diamond value determination of the Baoulé pipe. The Company remains on track to achieve this objective and is currently one third of the way through this exercise. A short operational update of the mining can be found at the following link:

http://stellar-diamonds.com/wp-content/uploads/2015/04/Baoule-Presentation-Apr-15.pdf

Diamond Results

A total of 5,015 carats have been recovered to date from Baoulé at a +1.25mm cut off, giving an average grade of 13.6cpht. This still compares favourably with the historically reported +1mm grade of 13cpht. A total of 380stones greater than 1 carat have been yielded and numerous gem diamonds of over 5 carats and more recently gem diamonds of 10.0 and up to 12.6 carats have been recovered to date.

SEE LINK AT bop FOR TABLE

Diamond Sale

The first diamond sale of 2015 was announced on 24 March 2015. Included in this sale were 733 carats of gem quality diamonds from Baoulé that sold for an average of US$266 per carat and which realised US$195,000 in revenues. This sale included a stone of 5.55 carats which attracted a price of US$5,000 per carat, as well as other stones that exceeded US$1,000 per carat in value, which demonstrates the high quality of some of the goods at Baoulé. Stellar opted to withhold 1,617 carats of predominantly near gem/industrial goods from this sale as the Company believed a stronger price could be realised for the goods in future sales. Stellar will present these withheld goods for sale alongside the next export from Baoulé at a sale currently planned for May 2015. Further information will be announced in relation to the next planned sale, when the final number of carats and definitive dates are established.

Ebola Update

Although the Ebola virus persists in some areas of Guinea there have been no recorded cases in the area of operation for some time. Nevertheless, the Company remains vigilant and adheres to strict operating procedures to ensure the continued well-being of all employees and the local communities.

Competent person

This announcement has been reviewed by Karl Smithson, Chief Executive of Stellar, a qualified geologist and Fellow of the Institute of Materials, Metals, Mining, with 26 years' experience.

http://www.moneyam.com/action/news/showArticle?id=5018871

Stellar Diamonds pleased with trial mining progress at Baoule
By Philip Whiterow
April 20 2015, 8:33am

Stellar Diamonds (LON:STEL) has recovered more large, high quality stones from its trial mining operation at Baoule in Guinea.

Latest mining has seen diamonds of between 12.6 carat and 10.0 carats, the company said. So far a total of 5,087 carats has been unearthed at the mine at an average grade of 13.5 cpht.

Last month, Stellar sold 733 gem quality carats from Baoulé at an average value of $266 per carat as part of a larger sale. One 5.5 cpht diamond sold for more than US$25,000.

Karl Smithson, chief executive, said: "Good progress continues to be made from trial mining at Baoulé.

“Our objective is to produce 15,000 carats from this exercise to enable us to determine the grade, value and presence of large stones in the pipe, with a view to using this information to consider a decision to advance Baoulé to commercial scale mining.“

7 May 2015
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")


Baoulé Diamond Sale

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that its next diamond sale of up to 4,439 carats from trial mining of its Baoulé kimberlite project in the Aredor area of Guinea will take place in Dubai and Antwerp via the eDiamond auction platform during May. The sale process will include gem quality stones up to 12.6cts in size.

The goods will be available to view in the offices of eDiamond in Dubai from the 10 to 13 May and in Antwerp from the 18 to 25 May with the auction expected to close at the end of May 2015.

Interested and compliant qualified groups can arrange to view the goods by registering with eDiamond.

This second diamond sale is part of the Company's anticipated regular sales process from the trial mining of Baoulé where a total of 15,000 carats are targeted in order to establish the diamond grade, value and presence of large diamonds in the kimberlite pipe.


About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond development company which has commenced trial mining of its Baoulé kimberlite in Guinea, and is progressing the 1.45 million carat Tongo Dyke-1 resource in Sierra Leone through the mining licence application process. In addition, Stellar holds the 3 million carat Droujba project in Guinea and continues to pursue diplomatic channels to ensure the proper reinstatement of its Kono licences in Sierra Leone.

http://www.moneyam.com/action/news/showArticle?id=5031718

Stellar Diamonds and their Tongo Kimberlite Project get a mention in the latest 'African Mining' magazine:

http://www.myvirtualpaper.com/doc/brookepattrick/african_mining_may-june_2015/2015051301/17.html#16

and relates to this announcement:

Application for Mining Licence at Tongo Kimberlite Project, Sierra Leone

6 Month Chart

5 Year Chart

BIG PICTURE - Stellar Diamonds gleaming in Guinea
By Andrew Neil
May 15 2015

Twelve months ago Stellar Diamonds’ (LON:STEL) Baoulé mine was tipped to transform the company’s fortunes.

Back then, the firm was still building roads and lugging equipment to its 75% owned site, located in the heart of the Aredor diamond district in Guinea.

A year on, and after fast-tracking trial mining at the West African operation, Baoulé is generating substantial carats and cash flow for the business.

“We’ve become more of a development company than an exploration company,” Stellar’s chief executive Karl Smithson told Proactive. “That’s been a key change for us.”

To date, diamond production from initial trial mining at Baoule has recovered 34,958 diamonds, weighing 5,087 carats.

Sales of up to 4,439 carats will take place in Dubai and Antwerp this month and will include gem quality stones up to 12.6 carats in size.

It follows an earlier sale of 733 gem quality carats from Baoulé at an average value of US$266 per carat.

One diamond sold for more than US$25,000.

Stellar’s plan is to produce and sell a total of 15,000 carats from the site this year, raising between US$2-3mln.

All of which is being used to establish the overall diamond grade, value and presence of large stones in the kimberlite pipe.

“Essentially it’s a self-funded evaluation exercise,” explains Smithson.

“We’ll be recycling all the funds back into the project. That way, Baoule becomes a lot more tangible from an investment perspective.”

Still, the firm would need to raise between US$50mln and US$100mln to move to full commercial-scale mining.

That requires a track record of production and a definitive resource study.

Hence why Stellar’s trial mining is an important early indicator of the mine’s future potential.

“In the long run, if we can prove Baoule’s economically viable, potentially, we could be mining 2mln tonnes of deposit annually,” said Smithson.

“At current grades, that could produce 300,000 carats with potential revenues of US$40-50mln each year.”

Clearly, that’s a major operational step up, but the early work could count for a lot.

In a recent note, Austin McKelvie, analyst at Daniel Stewart, said Stellar is already establishing itself as a supplier of regular, high quality diamonds to the markets of the world from the mine in Guinea.

Another broker, Sanlam Securities, has a 'speculative buy' rating on Stellar’s shares, targeting 1.86p with current prices at 0.9p.

Sanlam is just as keen on the firm’s second project in Tongo, which has an inferred resource of 1.45mln carats.

Bulk sampling has been completed at the project in Sierra Leone, despite the Ebola crisis.

In April, Stellar lodged its application for a mining licence at the site as part of its new fast-track plan.

All of the data compiled so far on the deposit is being pulled together for a preliminary economic assessment.

This will be used instead of a previously planned definitive feasibility study and will cut costs.

Smithson says moving the site to the mining licence application stage is a major milestone for the project.

Meanwhile, there is a clear will to support efforts to build the mine – which can offer a positive contribution to the post-Ebola social and economic reconstruction of the area.

Like most companies in the region, Stellar had to adjust its operations last year to address the threat of the Ebola outbreak.

Guinea has been the least affected of the West African countries, so work Baoulé hasn’t been impacted.

But in Tongo, one of the worst affected areas in Sierra Leone, Steller had to temporarily lock down its site.

Austin McKelvie, analyst at Daniel Stewart reckons the Ebola concerns have taken 50% off Stellar’s the share price since May last year.

However, now reckons the shares are undervalued and is currently considering his target price.

Smithson, meanwhile, reckons it’s only a matter of time before Stellar’s value picks up.

“There’s no high-risk exploration left,” he said.

“We’ve reached the development end of the curve and have a better understanding of grades, value, levels of production.

“As we progress, people will sit up and realise this is a different company altogether.”

28 May 2015
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")

Strong Revenues from Baoulé Diamond Auction


Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces sales of US$505,000 from the auction of diamonds from its 75% owned, Baoulé kimberlite pipe in Guinea ("Baoulé" or "the Project"). This brings sales to date for 2015 to over US$922,000, of which US$700,644 are derived from the trial mine evaluation of Baoulé.

Highlights from Baoulé sales:


· Latest diamond auction realises US$505,000 before costs

· 6 lots totalling 48.12cts of +5ct stones sold for US$3,510.17 per carat ($168,909.23)

· Revenue to date of US$700,644 from 5,173 carats at an average of US$135 per carat

· Latest run of mine parcel of 2,822 carats realised an average price of US$156 per carat

· Trial mine evaluation continuing with the objective to yield 15,000 carats for sale and valuation



Stellar Diamonds Chief Executive Karl Smithson commented:

"We are delighted with the results from the latest diamond sale from Baoulé via the online auction eDiamond platform. The presence of larger, high value stones and the stability in the rough diamond market has resulted in an average price of US$156 per carat for the latest Baoulé "run of mine" parcel. Stellar's total revenue from diamond sales in 2015 currently stands at US$922,000, of which US$700,000 is derived from Baoulé. Trial mining is on-going and further diamond sales are targeted for the coming year."



About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond development company which has commenced trial mining of its Baoulé kimberlite in Guinea, and is progressing the 1.45 million carat Tongo Dyke-1 resource in Sierra Leone through the mining licence application process. In addition, Stellar holds the 3 million carat Droujba project in Guinea and continues to pursue diplomatic channels to ensure the proper reinstatement of its Kono licences in Sierra Leone.

http://www.moneyam.com/action/news/showArticle?id=5045093

price 1p

STEL's strong revenues from diamond auction

Stellar Diamonds confirms sales of US$505,000 from the auction of diamonds from its 75%-owned, Baoulé kimberlite pipe in Guinea. This brings sales to date for 2015 to over US$922,000, of which US$700,644 are derived from the trial mine evaluation of Baoulé.

Highlights from Baoulé sales:
· Latest diamond auction realises US$505,000 before costs
· 6 lots totalling 48.12cts of +5ct stones sold for US$3,510.17 per carat ($168,909.23)
· Revenue to date of US$700,644 from 5,173 carats at an average of US$135 per carat
· Latest run of mine parcel of 2,822 carats realised an average price of US$156 per carat
· Trial mine evaluation continuing with the objective to yield 15,000 carats for sale and valuation

hmmmmm.....more like that song from James...


Smithson, meanwhile, reckons it’s only a matter of time before Stellar’s value picks up.

“There’s no high-risk exploration left,” he said.

“We’ve reached the development end of the curve and have a better understanding of grades, value, levels of production.

“As we progress, people will sit up and realise this is a different company altogether.”

http://www.proactiveinvestors.co.uk/companies/news/106811/big-picture-stellar-diamonds-gleaming-in-guinea-106811.html

14 August 2015
AIM: STEL
Stellar Diamonds plc

Issue of Convertible Loan Note and Grant of Warrants

Proposed capital re-organisation

Director's loan

Stellar Diamonds Plc (the "Company" or the "Group"), the London listed (AIM: STEL) diamond development company focused on West Africa, announces that it has today raised US$330,000 (approximately £211,200) by way of the issue of a new unsecured convertible loan note ("Note") to Deutsche Balaton AG ("Deutsche Balaton").

Additionally the Company has granted Deutsche Balaton a warrant to subscribe for new ordinary shares for an aggregate subscription price of US$330,000 (£211,200) as further detailed below ("Warrant"). The net proceeds of the Note will be used for the near term working capital requirements of the Group.

CEO Karl Smithson commented:

"Deutsche Balaton share our vision for the development of a significant hard rock diamond mine from our portfolio of advanced projects in West Africa. In what remains a challenging market for the natural resource sector we welcome and value the support and credentials of Deutsche Balaton who we believe will be a long term strategic investor in the Company.

It is necessary for Stellar to undertake a capital reorganisation in order to amend the nominal value of our shares relative to the price at which we are currently able to issue new shares. As such, it is intended that the Company's shares will be consolidated and sub-divided. The Directors consider that the participation of Deutsche Balaton and the proposed share re-organisation are important developments in the transformation of Stellar from a junior explorer in to an established diamond producer."

Further Information

Deutsche Balaton AG is a German private equity investment company founded in 1991 and based in Heidelberg. Its shares are traded on the Frankfurt Stock Exchange (Regulated Unofficial Market, Open Market, Entry Standard) and it is an investor in public and private companies across a range of sectors, in addition to investing in other areas such as fixed-interest securities. Investments are typically held over the long term with a view to creating an attractive return for its shareholders.

The terms of the Note and the Warrants are set out below.

Conversion of the Note into ordinary shares in the Company ("Conversion") and exercise of the Warrant ("Exercise") is conditional on, inter alia, approval by an appropriate resolution of the shareholders of the Company of a share reorganisation ("Proposed Capital Re-organisation"), further details of which are set out below. The Proposed Capital Re-organisation, if implemented, would result in the number of ordinary shares in issue being reduced by a factor of 50 times.

Shareholders should take particular note of references to "Existing Shares", which refers to the existing ordinary shares of 1 pence each (there are currently 811,929,724 Existing Shares in issue) and references to "Proposed New Shares", being those ordinary shares of 1 pence each in issue following completion of the Proposed Capital Re-organisation (expected to be approximately 16,238,595 Proposed New Shares in issue immediately following the Proposed Capital Re-organisation).

Key terms of the Note

The maturity date of the Note is 7 August 2017 ("Maturity Date") unless redeemed ("Redemption") or converted into ordinary shares in the Company prior to this date. The Maturity Date may be extended by a maximum of six months in the event that Conversion or Exercise is not possible at the Maturity Date (to the extent that the Note has not already been redeemed or converted or the Warrant has not already been exercised) as a result of, inter alia, Deutsch Balaton being in possession of unpublished price sensitive information. Interest is payable on the Note at 6% per annum to be paid in cash in arrears, with the first instalment to be paid on 7 August 2016 and thereafter every six months. On Conversion, any outstanding interest will become payable.

The Note may be converted into 37,473,600 Existing Shares at an effective price of 0.56 pence per Existing Share. The Note may be converted into ordinary shares in whole, but not in part.

The Note may be redeemed in cash at any time at the Company's discretion providing that 10 weeks' notice is given to Deutsche Balaton. Deutsche Balaton may, at its sole discretion, require that the Note be converted into ordinary shares rather than redeemed. The Note may also be redeemed early in certain circumstances, including customary events of default.

Following Conversion and assuming that no other shares are issued by the Company between now and Conversion, Deutsche Balaton would be interested in 4.4 percent. of the Company's so enlarged issued share capital.

The Note is subject to standard anti-dilution provisions and protections in the event of further capital re-organisations in addition to the Proposed Capital Re-organisation (including in the event of an issue of new ordinary shares pursuant to the exercise of options held by employees or directors of the Company).

Details on the effect of the Proposed Capital Re-organisation on the number of shares to be issued pursuant to Conversation are set out below.

Key terms of the Warrant

The Company has granted Deutsche Balaton a warrant to subscribe for a total number of 59,957,900 Existing Shares for an aggregate subscription price of US$330,000, equivalent to an exercise price of approximately 0.35 pence per Existing Share, in order that assuming Conversion and Exercise in full, Deutsche Balaton may own in total up to 10.7 percent. of the Company's so enlarged share capital.

The Warrant is only exercisable following conversion of the Note and may be exercised at any time commencing from the date of Conversion and ending on the Maturity Date of the Note. The Warrant is only exercisable in the event that the Proposed Capital Re-organisation has occurred and may only be exercised in whole and not in part.

The Warrants are subject to standard anti-dilution provisions and protections, in the event of further capital re-organisations in addition to the Proposed Capital Re-organisation.

Proposed Capital Re-organisation

The Companies Act prohibits companies from issuing shares at a price below their nominal value. The terms of the Note and the Warrants are such that the effective issue price of Existing Shares to Deutsche Balaton, were Conversion or Exercise to occur, would be below the current nominal value of 1 pence per Existing Share.

Accordingly, it is the Directors' intention that a capital re-organisation be carried out in due course to allow Conversion and Exercise to occur.

Subject to publication of a shareholder circular and passing of resolutions by shareholders at a general meeting, it is intended that the Proposed Capital Re-organisation will consist of two elements:

· every 50 Existing Shares of 1 pence each will be consolidated into 1 consolidated share of 50.0 pence ("Consolidated Shares") ("Consolidation"); and

· immediately following the Consolidation, it is intended that each Consolidated Share will then be sub-divided into 1 new ordinary share of 1 pence ("Proposed New Share") and 1 new deferred share of 49 pence ("New Deferred Share") ("Sub-Division").

In the event of implementation of the Proposed Capital Re-organisation, shareholders would own 1 Proposed New Share of 1 pence nominal value and 1 New Deferred Share for every 50 Existing Shares that they own prior to the Proposed Capital Re-organisation. It is not expected that the percentage holding of individual shareholders in the Company would change as a result of the Proposed Capital Re-organisation. The rights attaching to the Proposed New Shares would be identical in all respects to those of the Existing Shares and the deferred shares would have carry no voting rights or be admitted to trading on AIM. Full details of the Proposed Capital Re-organisation will be set out in a shareholder circular and notice of general meeting.


Expected effects of the Proposed Capital Re-organisation on Conversion and Exercise

The result of the Proposed Capital Re-organisation (being the Consolidation and the Sub-Division), if approved by shareholders, would be to reduce the number of ordinary shares in issue by approximately 50 times and, accordingly, assuming normal market conditions, to increase the price at which the Company's ordinary shares would trade to approximately 50 times the value at which the Existing Shares currently trade. The nominal value of 1 pence each per Existing Share would remain unchanged at 1 pence per Proposed New Share under these proposals.

Assuming shareholder approval of the Proposed Capital Re-organisation:

· Conversion, if it occurred would result in the issue of 749,472 Proposed New Shares (being 37,473,600 Existing Shares divided by 50 times) issued at an effective share price of approximately 28.2 pence per Proposed New Share;

· Exercise, if it occurred in full would result in the issue of up to 1,199,158 Proposed New Shares (being 59,957,900 Existing Shares divided by 50 times) issued at an effective share price of approximately 17.6 pence per Proposed New Share.

In the event that Conversion and Exercise occurs, Deutsche Balaton will be interested in approximately 10.7 percent. of the so enlarged share capital (assuming no other issue of shares occurs between now and Exercise).

Since conversion of the Note and exercise of the Warrant is conditional on the Proposed Capital Re-organisation being implemented, the number of Existing Shares referred to above following Conversion or Exercise is for illustrative purposes only.

It is expected that a further announcement on the Proposed Capital Re-organisation will be made in due course together with publication of a circular and notice of general meeting to effect the Proposed Capital Reorganisation. In the event that the Proposed Capital Re-Organisation does not occur, Deutsche Balaton will be unable convert the Note into Existing Shares or exercise its Warrant.

Potential further issue of convertible notes

The Company is currently in advanced discussions with Deutsche Balaton with regards to securing a larger convertible loan note (and associated warrants) over and above the Note ("Additional Note") to provide sufficient working capital for the Group for the period through to expected completion of the Tongo mining licence approval process.

This approval process is expected to be completed later in 2015, although there is no guarantee of this timing and is subject to regulations the Mines Act (2009) of Sierra Leone, which allows for conversion of an exploration licence to a mining licence on completion of a mine plan, financial model, environmental impact study and environmental licence. Stellar is well advanced on all of these aspects of the mining licence approval process and a more comprehensive update will be issued in the near future. Whilst discussions with Deutsche Balaton are at an advanced stage, there is no guarantee that the Company will enter into definitive agreements in respect of the Additional Note.

Director's loan

The Company has received an unsecured loan of US$45,000 ("Loan") from Peter Daresbury, Non-Executive Chairman of the Company, in order to contribute to the Company's working capital position during the course of its negotiations with Deutsche Balaton. There is no interest payable on the Loan and the Loan does not have a fixed repayment term. It is anticipated that the Loan will be repaid in the event that further funds are raised from Deutsche Balaton or another investor. The Loan constitutes a related party transaction under the AIM Rules for Companies. The Directors who are independent of the Loan consider, having consulted with the Company's nominated adviser, believe that the terms of the Loan are fair and reasonable in so far as the Company's shareholders are concerned.

Exchange rate

An exchange rate £0.64: US$1.00 has been assumed for the purpose of this announcement.


About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond development company which is continuing trial mine evaluation of its Baoulé kimberlite in Guinea, and is progressing the 1.45 million carat Tongo Dyke-1 resource through the mining licence application process. In addition, Stellar holds the 3 million carat Droujba project in Guinea and continues to pursue channels to ensure the proper reinstatement of its Kono licences in Sierra Leone.
** ENDS **

http://www.moneyam.com/action/news/showArticle?id=5094837

Just catching up:

24 August 2015
AIM: STEL

Stellar Diamonds plc

Positive PEA on Tongo Project and Mining Licence Application, Sierra Leone

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces the results of the preliminary economic assessment ("PEA") from its Tongo kimberlite diamond project in Sierra Leone ("Tongo" or "the Project").


Independent consulting company Paradigm Project Management ("PPM") was retained by the Company to conduct the PEA over the 1.45 million carat inferred resource of the Tongo Dyke-1 kimberlite, one of four kimberlite dykes at the Project. The objective was to define updated project economics for both surface and underground mining of the diamond resource in support of the mining licence application. This independent PEA report can be found on the Company's website.



Tongo Dyke-1 PEA Highlights:

· 18 year life of mine from both surface and underground mining yielding 955,930 carats

· Surface mining in years 1-4 targeting a yield of 117,806 carats providing early cash flow

· Modelled diamond resource grade of 120cpht and diamond value of US$270 per carat

· Low cost capex requirement of US$24.2 million to establish surface and underground mine

· Gross mine revenues of US$386.7 million

· Pre-tax NPV10 of US$53.2 million and IRR of 31%

· Significant potential to increase mine life and revenues with resource open at depth

· Mining licence application to be submitted



Chief Executive Karl Smithson commented:

"The Tongo PEA has delivered robust economics which support the development of an open pit and subsequent underground mine. Early cash flow is expected to be generated from the initial surface mining but the mine also represents a long-term and sustainable operation which has the potential to generate solid cash flows from the sale of its very high quality, high grade diamonds over many years. Stellar considers that the Tongo mine can be further improved and extended with the development of additional diamond resources from nearby high-grade kimberlites that we have previously identified and tested.

"Importantly for Sierra Leone, this mine will contribute significant employment and community development opportunities in an area that has been adversely affected by the Ebola crisis, which has now thankfully been eradicated from the area of operation for over six months. As such we will work closely with all stakeholders to ensure the successful development of this mine for all concerned. We expect to formally submit our application for the mining licence in the near future, once our environmental impact assessment study has been completed and our environmental licence granted.


"I look forward to updating shareholders over the coming months as we continue towards the development of the Tongo mine to complement our Baoulé Kimberlite Pipe Project in Guinea where Trial Mining has already generated revenues from diamond sales."

More from link below:

http://www.moneyam.com/action/news/showArticle?id=5099328

http://stellar-diamonds.com/

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Stellar Diamonds boss on potential upside at Tongo project