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!

25 February 2016
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")

Baoulé Diamond Sale Set For March


Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that its next diamond sale from trial mining of its Baoulé kimberlite project in the Aredor area of Guinea will take place in Antwerp via the DDA Trading platform during March 2016.

A total of 3,341 carats were exported in February 2016 which after cleaning has resulted in a loss of weight to 3,295 carats to be sold by auction.

The goods will be available to view in the offices of DDA Trading in Antwerp from 25th February 2016 with the auction expected to close on 8th March 2016. Interested and compliant qualified groups can arrange to view the goods by appointment only and by registering with DDA.

This diamond sale forms part of the Company's trial mining evaluation process of the 5 hectare Baoulé kimberlite where some 100,000 tonnes is being mined and processed in order to determine with confidence the grade and diamond value of the pipe. Over 9,000 carats have been yielded to date and some 5,173 carats were sold in 2015 realising over US$700,000 in revenues.


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 channels to ensure the proper reinstatement of its Kono licences in Sierra Leone.

http://www.moneyam.com/action/news/showArticle?id=5219834

15 March 2016
AIM: STEL

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

Issue of Equity, Diamond Sale and Directorate Change

http://www.moneyam.com/action/news/showArticle?id=5236905

Stellar raises £600 000, auctions $300 000 in diamonds
15th March 2016
By: Natasha Odendaal Creamer Media Deputy Editor Online

Aim-listed Stellar Diamonds has conditionally raised some £600 000 to support various development initiatives at its Sierra Leone and Guinea operations and for general working capital.

The West Africa-focused diamond development company placed 4.4-million new ordinary shares at 10p apiece, while Stellar’s largest shareholder Deutsche Balaton agreed to subscribe for 1.6-million subscription shares at 10p each.

Deutsche Balaton would now hold an aggregate 8.5-million shares, growing its stake to 26.77% following the conclusion of the transaction.

The proceeds would be used to support the company’s Tongo mine licence application process in Sierra Leone, as well as complete the trial mining and diamond sales exercise and a maiden resource statement, targeting three-million carats, at the Guinea-based Baoulé project.

Stellar also announced the generation of nearly $300 000 from the sale of 3 291 ct in diamonds from the Baoulé project through an auction in Antwerp.

The average price achieved was $91.05/ct, a decline on the $156/ct achieved in the May 2015 sale, owing to a “different mix of goods” with a higher proportion of lower-quality stones, as well as a broadly weaker rough diamond market since mid-2015.

Despite this, at the recent auction, certain gemstones, mostly white gems and fancy coloured yellow gems, fetched prices between $1 000/ct and $4 600/ct.

Meanwhile, in line with Stellar’s ongoing corporate cost-cutting initiative and the rationalisation of the board, Liviu Meran and Dr Markus Elsässer have stepped down as nonexecutive directors, effective March 15.

29 March 2016
AIM: STEL
Stellar Diamonds plc
(“Stellar” or the “Company”)

Interim Results for the six months to 31 December 2015

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 2015.

Operational and Financial Highlights during the period:

•Cash, diamonds held for sale and other inventories of US$0.7m at period end
•US$2.4m of funding brought in through the issue of a Convertible Loan and placing of shares, predominately through new strategic funding partner Deutsche Balaton
•Repayment of Yorkville loan in full
•Administrative costs further reduced to US$0.65m from US$0.91m in the 6 months to December 2014 (29% reduction) and US$1.44m for the 12 months to June 2015 (10% reduction for 6 month equivalent)
•Mining licence application submitted for Tongo Kimberlite Dyke-1 Project in November 2015 and making good progress
•Continued progress of the trial mining process at the Baoulé Kimberlite Pipe Project

Post period-end Highlights

•Baoulé Kimberlite Pipe Project, Guinea (“Baoulé”):

•Diamond sale in March 2016 realising approximately US$0.3 million taking total revenues to date from diamond sales to approximately US$1 million
•Gem diamonds of high quality achieving prices of up to US$6,800 per carat
•Trial mining continues and has yielded over 9,300 carats to date
•Largest stone of 55 carats, though of low quality, indicates large stone potential of pipe
•100,000 tonne bulk sample now 73% completed

•Tongo Kimberlite Dyke-1 Project, Sierra Leone (“Tongo”):

•Good progress made on Mining Licence application
•Environmental Impact Assessment approved
•Estimated project NPV of US$53m and IRR of 31%, however; the weakening of South African Rand and lowering of diesel price has significantly enhanced current project economics

•Financial Highlights

•Equity raising of £0.6m before expenses (conditional on Admission)

Stellar Diamonds Chief Executive Karl Smithson commented, “During the six months reporting period Stellar has continued to achieve good progress at the advanced Tongo and Baoulé projects.

“At Tongo the application for the mining licence over the 1.45 million carat Dyke-1 resource was submitted in November 2015, after we had compiled all necessary technical and financial information in support of the application. The first stages of the approval process have been completed and we now await the recommendation of the Minerals Advisory Board (MAB) to the Minister of Mines. We have also prepared and submitted our environmental impact assessment study to the Environmental Protection Agency (EPA) and this was recently approved in February of this year. We will now engage with the EPA to determine an appropriate licence fee in order to receive our environmental licence which will enable the mining licence to be granted, subject to the MAB and Ministerial approval.

“Trial mining has continued at the 5 hectare Baoulé pipe where we are now 73% of the way through our stated 100,000 tonne bulk sample. The diamond grade remains at the expected 13cpht at a +1.25mm cut off and diamonds of up to 55 carats in size have been yielded, which confirms that the pipe is a source of large diamonds. We sold two diamond parcels in the first half of 2015, realising over US$700,000 in revenues, and a third sale was recently completed post reporting period which generated a further US$300,000 in revenues, bringing total revenues to US$1 million. From the sales conducted we have realised high values for single stones of up to US$6,800 per carat, which demonstrates the high quality of some of the diamonds in the deposit. At the end of the trial mining period we intend to establish a maiden diamond resource for the pipe with a target of 3 million carats based on current diamond grade and modelled tonnages.”

Chairman’s Statement

During difficult resource market conditions, Stellar’s focus has rightly remained on the key projects of Tongo and Baoulé which offer the most direct routes to enabling Stellar to become a significant diamond producing company. This has been achieved under very challenging circumstances on the ground during the Ebola outbreak which, I am pleased to report, is totally eradicated from Sierra Leone and with only a few recent sporadic cases in remote areas of Guinea that signify the end of the outbreak there. As Chairman, I am proud of what our Company achieved in its commitment to educate and protect its staff and nearby local communities during this period, often at great personal risk.

Tongo Project, Sierra Leone

Last calendar year we managed to complete all the necessary resource, mine plan and financial modelling requirements for the 1.45 million carat resource at Dyke-1 in the form of an independent Preliminary Economic Assessment (PEA). Armed with this information we were then able to submit the mining licence application which is being given due consideration by the Government authorities. This, to my knowledge, will be the first mining licence application in Sierra Leone since the onset of the Ebola crisis.

The resource at Tongo is high grade (120cpht) and of high diamond value (US$270/ct) which offers an attractive in-situ value of over US$300 per tonne of rock. This is what drives the attractive margin and returns, as evidenced in our PEA where an NPV of US$53 million and IRR of 31% (at a 10% discount rate) were calculated in H1 2015. However, if we adjust the model for today’s South African Rand to US Dollar exchange rate, and the current diesel price in Sierra Leone, the project returns jump to an NPV of US$68.9 million and IRR of 41%.

As I have previously written, there is further resource potential at Tongo from three as yet undrilled, high-grade kimberlites next to Dyke-1. Subject to available finance we will aim to drill Dyke-4 and bring it into resource with a target of 500,000 carats that can contribute to the 1.45 million carat resource at Dyke-1 as we commence production.

We are now turning our attention to potential and appropriate sources of funding for the Tongo mine. A total capital requirement (including working capital for the project) is calculated to be around US$25 million which will enable both the surface and underground mining operation to be brought on stream. We will provide further details on this in due course.

Baoulé Project, Guinea

We resumed trial mining late in the report period after a prolonged rainy season. Our objective remains to mine and process 100,000 tonnes from the 5 hectare pipe, with an approximate equal amount being from the east and west lobes so as to be able to compare results.

We are currently 73% of the way though this sample, having mined 46,500 tonnes from the east lobe and 26,000 tonnes from the west lobe. Processing of this material has yielded over 9,300 carats at an average run of mine (diluted) grade of 12.7 carats per hundred tonnes at a +1.25mm cut off. The largest stone recovered so far is a low quality 55 carat diamond but this does demonstrate the pipe has large diamonds. Notable gem stones up to 13 carats in size have been yielded with some achieving high rough selling prices of up to US$6,800 per carat (for a 10 carat fancy yellow stone).

Three diamond sales have been concluded in Antwerp which have realised US$1 million in revenues. The average prices received for each sale have been highly variable due to the different mix of product and also the volatility in the rough diamond market experienced over the past 12 months.

Based on current production levels of approximately 1,000 carats per month, the trial mining exercise is mostly a cash neutral exercise which is an efficient way to conduct what is essentially an evaluation and resource building exercise. We expect the trial mining component of the process to be completed before the next rainy season (circa. July) and thereafter we will establish maiden resource statement for the Baoulé pipe. 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 12.7cpht, this would suggest a diamond resource in the region of 3 million carats.

Corporate

In November we were delighted to welcome Deutsche Balaton, a German based investment company, as a significant shareholder and funding partner. Deutsche Balaton invested approximately US$2.4m into Stellar through a convertible loan and a direct equity investment, and at the same time we undertook a capital reorganisation through a 1 for 50 consolidation of our ordinary shares. We hope to work closely with Deutsche Balaton over the coming months as we fund and develop the Tongo mine into production.

We were also pleased to welcome Hansjörg Plaggemars onto the Board of Stellar as the appointed representative of Deutsche Balaton. However, as part of our efforts to rationalise our corporate costs we have streamlined the Board and Dr. Markus Elsasser and Liviu Meran, both representatives of significant shareholders, stepped down from their non-executive director positions. I would like to thank them both on behalf of the Board for their contribution to Stellar and we will continue to work closely with them as key shareholders as we move forward on our strategy of becoming a diamond producing company. Also in November we undertook a capital reorganization through a 1 for 50 consolidation of our ordinary shares.

As in previous periods we have continued to look for ways of reducing our corporate and general administrative cost overheads and I am pleased to report that this has again resulted in a significant reduction of these costs.

Diamond Market

The rough diamond market in 2015 saw average price declines of 15%. However, it is noted that prices have recovered strongly in the first two months of 2016 with both De Beers and Alrosa managing supply to the market to meet the actual demand. There is likely to be some ongoing uncertainty in pricing in the shorter term after manufacturers have restocked so prices for 2016 are likely to remain vulnerable if there is excess supply to the market. The longer term fundamentals for diamonds nevertheless remain robust and one of the most compelling of any commodity.

Outlook

Looking ahead our objective for 2016 is for Stellar to evolve from an explorer to a funded diamond mining company with Tongo moving into the development phase once the mining licence is granted and the necessary funding has been secured. This will be the key focus of the executive team over the coming months and it is no doubt going to be challenging with the current tough resource market conditions. However, we believe that we have the project and the team to make this happen.

Finally, I would like to take this opportunity to thank all our shareholders for their ongoing support for Stellar during these tough markets, as well as my fellow Board members and team on the ground for their commitment in driving the projects forwards. We are all hopeful that 2016 will be one of success and renewed value creation for Stellar.

Lord Daresbury
Non-Executive Chairman
http://stellar-diamonds.com/news/press/interim-results-for-the-six-months-to-31-december-2015

31 May 2016
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")

Initial Approval of Tongo Mine Licence


Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, has been verbally informed that the Minerals Advisory Board (MAB) has approved the application for a mining licence over its 100% owned Tongo project in Sierra Leone. Progression of the licencing process remains subject to the National Minerals Agency ("NMA"), the licencing body of the Ministry of Mines, formally writing to Stellar to inform it of the decision and drawing up a licence agreement to be forwarded to the Minister of Mines for approval.

Thereafter the fiscal terms of the mining licence will be negotiated between Stellar and the Government of Sierra Leone and the resulting mining concession agreement will then require ratification through Parliament.

In the meantime, Stellar is engaging with the Environmental Protection Agency ("EPA") with regards to the required environmental licence, which must also be issued before mining can commence.

A further announcement will be made to shareholders as and when the formal letter is received from the NMA. Such announcement will include any initial conditions expected in relation to the licence.

About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond company with projects at the trial mining and mine development stages in Guinea and Sierra Leone.

http://www.moneyam.com/action/news/showArticle?id=5350677

13 June 2016
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")

Trial Mining Evaluation Completed at Baoulé kimberlite in Guinea

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

Highlights:

· 100,000 tonne bulk sample completed

· 11,808 carats recovered at an average grade of 11.4cpht at a +1.25mm cut off

· Grade of the eastern lobe higher than western lobe at 13.3cpht vs. 9.8cpht respectively

· Over 8,400 carats sold to date in three diamond sales realising over US$1 million in revenues

o Gem diamonds of high quality achieving prices of up to US$6,800 per carat

· Sale of over 3,100 carats planned later this month

· Diamond value and grade modelling under way as part of establishing the diamond resource targeting ~3 million carats

Stellar Chief Executive commented:

"The trial mining exercise at Baoulé has been successfully completed, ahead of schedule, through the processing of over 100,000 tonnes of kimberlite from the eastern and western lobes of the 5 hectare pipe. A total of 929 stones greater than 1 carat have been yielded including numerous high value gem and fancy coloured (yellow) diamonds. Additionally as announced on 15 March 2016, one 55 carat stone has been recovered, which confirms the Company's belief that the Baoulé pipe is a source of large diamonds that are renowned in the Aredor area of Guinea.

The results show a clear difference in grade and diamond quality between the eastern and western lobes, with the volumetrically larger eastern lobe being of higher grade and quality. With the higher grade area identified, we intend to sell a further 3,188 carats later in June, with these diamonds all arising from the western lobe. This planned sale will add to US$1 million generated to-date from diamonds sold, which has contributed significantly to the costs of the exercise. We will then complete the necessary diamond grade and value modelling as part of the resource estimation exercise, with our resource target remaining approximately 3 million carats contained within the Baoulé pipe. This will then allow us to formulate the next development steps for the project."

Trial Mining Production and Processing

Trial mining evaluation of the Baoulé kimberlite pipe was recently completed through the mining, extraction and processing of over 100,000 dry tonnes of kimberlite. The geology of the pipe is complicated in parts with what seem to be multiple intrusions and brecciated contact zones in both lobes, with the western lobe in particular hosting a number of late stage and cross-cutting kimberlite dykes. For the purposes of evaluation it was not possible to separate and process separately each kimberlite lithology. However, the east and west lobes were sampled and processed separately, which did confirm a difference in grade between the two. Some 46,561 tonnes were processed from the eastern lobe whereas some 56,555 tonnes were processed from the western lobe.

The following link shows a pictorial of the trial mining exercise from start to finish: http://stellar-diamonds.com/wp-content/uploads/2016/06/Baoulé-Trial-Mining-Review-June-2016.pdf

Diamond Results

A total of 11,808 carats have been recovered to date from Baoulé at a +1.25mm cut off, giving an average grade of 11.4cpht. However, it is clear that the eastern lobe has a higher grade at 13.3cpht than the western lobe at 9.8cpht. This could be a consequence of different kimberlite types or processing efficiencies, since it was noted that the western lobe did yield a fewer percentage of -7 sieve stones (<1.83mm) compared to the eastern lobe

A total of 929 stones greater than 1 carat have been yielded including numerous high value gem and fancy coloured (yellow) diamonds of up to 12 carats in size. The presence of the 55 carat stone confirms the Company's belief that the Baoulé pipe is a source of large diamonds that are renowned in the Aredor area of Guinea.

A full statistical analysis will be made to compare the eastern and western lobes in terms of diamond grade, value and size distribution.

The table below sets out the diamond results to date from Baoulé:

***See Link at BOP***


Diamond Sales

A total of three diamond sales have been held to date. Some 8,400 carats have been sold realising US$1 million in revenues. Diamond values have varied widely from US$91 to US$156 per carat depending on the market sentiment at the time of the sale and the diamond mix of the parcels sold. However, it is notable that a number of gem and fancy coloured diamonds commanded premiums and values of up to US$6,800 per carat, confirming the presence of high value stones in the Baoulé pipe.

The fourth diamond sale of over 3100 carats is scheduled for June 2016. The sale will be via online auction using the DDA Trading platform. Viewings of the goods will take place from 20 to 27 June 2016 in Antwerp with the auction closing on 28 June 2016. Results of the auction will be announced soon after the auction is closed and sales proceeds received.

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 27 years' experience.

About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond company with projects at the trial mining and mine development stages in Guinea and Sierra Leone.

http://www.moneyam.com/action/news/showArticle?id=5358806

13 June 2016
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")

Shareholder Loan Facility

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that it has entered into an unsecured loan facility agreement ("the Agreement") with existing shareholders Altus Strategies Limited ("Altus") and Deutsche Balaton AG ("Deutsche Balaton") to provide funding to the Company of £465,000 in aggregate (the "Loan"), of which £325,000 is to be provided by Altus and £140,000 by Deutsche Balaton. The proceeds of the Loan will be used for working capital purposes as the Company advances its mining licence application for its Tongo kimberlite project in Sierra Leone and establishes a maiden resource at its Baoulé kimberlite project in Guinea.

The Loan is repayable six months following the date of the Agreement, or as otherwise agreed from time to time and bears interest at a rate of 20% per annum, payable in arrears. Stellar may prepay all or part of the Loan at any time, subject to a minimum prepayment amount. The Loan agreement includes customary terms and conditions, including agreement to use best endeavours to sell certain non-core assets (namely plant and equipment) to repay the Loan in the event of default.

By virtue of Deutsche Balaton being a substantial shareholder of the Company and Steven Poulton, a Director of the Company being the Chief Executive Officer of and minority shareholder in Altus, 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, that the terms of the Loan are fair and reasonable in so far as the Company's shareholders are concerned.

About Altus Strategies Ltd

Altus is a private UK based natural resource group which was founded in 2007. Through its subsidiaries, Altus is advancing a diversified portfolio of mineral exploration projects across Africa, is authorised by the FCA to undertake investment management activities and makes principal investments in selected special situations. Further information on Altus is available at: www.altus-strategies.com.

About Deutsche Balaton AG

Deutsche Balaton is a German investment company which was founded in 1991. Its shares are traded on the Frankfurt Stock Exchange (Regulated Unofficial Market) and the company invests as principal in public and private equities, interest bearing securities and alternative assets across a range of sectors and geographies. Deutsche Balaton typically makes investments which result in it holding between 25 per cent. and 100 per cent. of a company. Further information on Deutsche Balaton is available at: www.deutsche-balaton.de

About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond company with projects at the trial mining and mine development stages in Guinea and Sierra Leone.

http://www.moneyam.com/action/news/showArticle?id=5358805

Missed this interview from 1st June:

Stellar Diamonds “moving in the right direction” with licence, says chief
12:17 01 Jun 2016

This week Stellar Diamonds PLC (LON:STEL) reported progress on its bid for a mining licence for its Tongo project in Sierra Leone, where it has been verbally informed that the Minerals Advisory Board (MAB) has approved its application.

Karl Smithson, chief executive, says he is “very happy” that the company has “gone through essentially two stages” – the submission of the licence application in November and the review by the Minerals Advisory Board.

He tells Proactive Investors that the company expects written approval in the shortly, before the application moves to the minister for his signature and final approval.

While the process is long, Smithson says the company is “moving in the right direction”, adding that he expects the project in Sierra Leone, once approved, to be a “long-term and sustainable operation for Stellar and for the country”.

Stellar Diamonds completes Baoulé sampling early
08:57 13 Jun 2016

The company revealed that the quality of diamonds in the larger eastern lobe is higher than those from the western lobe



Stellar Diamonds PLC (LON:STEL) has completed the 100,000 tonne bulk sample at its Baoulé kimberlite project in Guinea.

The company revealed 11,808 carats were recovered at an average grade of 11.4 carats per hundred tonnes (cpht), using a +1.25mm cut-off.

Stellar added that to date, more than 8,400 carats have been sold in three diamond sales, bringing in more than US$1mln in revenues. The higher quality gems have been achieving prices of up to US$6,800 per carat, it added.

The sale of a further 3,100 carats are planned later this month, with all of the diamonds extracted from the western lobe, which is generally yielding lower quality gems than the larger eastern lobe. The grade of the eastern lobe is clocking in at 13.3 cpht, compared to 9.8 cpht at the eastern lobe.

“This planned sale will add to US$1 million generated to-date from diamonds sold, which has contributed significantly to the costs of the exercise,” said Karl Smithson, chief executive officer (CEO) of Stellar Diamonds.

Meanwhile, the company is set to receive a further influx of funds via a shareholder loan. Shareholders Altus Strategies and Deutsche Balaton are to provide funding to the company of £465,000 in aggregate.

The proceeds of the loan will be used for working capital purposes as the company advances its mining licence application for its Tongo kimberlite project in Sierra Leone and establishes a maiden resource at its Baoulé.

The loan short-term loan bears an interest rate of 20% a year.

"The trial mining exercise at Baoulé has been successfully completed, ahead of schedule, through the processing of over 100,000 tonnes of kimberlite from the eastern and western lobes of the five hectare pipe,” noted CEO Karl Smithson.

“A total of 929 stones greater than one carat have been yielded, including numerous high value gem and fancy coloured (yellow) diamonds. Additionally as announced on 15 March 2016, one 55 carat stone has been recovered, which confirms the company's belief that the Baoulé pipe is a source of large diamonds that are renowned in the Aredor area of Guinea,” Smithson added.

Once this month’s diamonds sale is out of the way, Stellar will then complete the necessary diamond grade and value modelling as part of the resource estimation exercise. The company’s resource target is, as previously indicated, some 3mln carats contained within the Baoulé pipe.

When the grading and modelling has been completed it will allow the company to formulate the next development steps for the project.

“The company was able to confirm a difference in grade between the (volumetrically) larger eastern lobe (averaging 13.3cpht) and smaller western lobe (9.8cpht) lobes. Having said that, Stellar also noted that the difference could be due to differing processing efficiencies of the different kimberlite types,” noted broker Shore Capital.

John Harrington


and

June 2016 Baoulé Trial Mining Review Presentation

http://stellar-diamonds.com/wp-content/uploads/2016/06/Baoul%C3%A9-Trial-Mining-Review-June-2016.pdf

From the announcement 'Trial Mining Evaluation Completed at Baoulé kimberlite in Guinea' (13th June 2016):

The fourth diamond sale of over 3100 carats is scheduled for June 2016. The sale will be via online auction using the DDA Trading platform.

Viewings of the goods will take place from 20 to 27 June 2016 in Antwerp with the auction closing on 28 June 2016. Results of the auction will be announced soon after the auction is closed and sales proceeds received.

http://stellar-diamonds.com/news/press/trial-mining-evaluation-completed-at-baoule-kimberlite-in-guinea

6 July 2016
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")

$228,000 Revenue from Baoulé Diamond Auction


Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces revenues of US$228,000 at an average of US$72.65 per carat from the auction of diamonds from its 75% owned, Baoulé kimberlite pipe in Guinea ("Baoulé" or "the Project"). This brings sales from the 100,000 tonne bulk sample exercise to US$1,228,000. The lower average price achieved compared to previous sales reflects the fact that the parcel was made up entirely from diamonds produced from the smaller Western lobe which contains lower quality diamonds compared to the volumetrically larger Eastern lobe, and the current weaker rough diamond market. However it should be noted that the better quality gem diamonds again achieved strong prices, with two 5 carat diamonds achieving in excess of US$3,500/ct.


About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond company with projects at the trial mining and mine development stages in Guinea and Sierra Leone.

http://www.moneyam.com/action/news/showArticle?id=5374299

28 July 2016
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")

Proposed Joint Ventures in Guinea and Liberia with Significant Earn-in Investment for Development

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, is pleased to announce that it has signed binding heads of terms with Citigate Commodities Trading ("Citigate"), a Dubai based commodities group, to formulate joint ventures over the Baoulé kimberlite project ("Baoulé") in Guinea, which has a resource target of approximately 3 million carats, and over two new exploration licences in western Liberia ("Liberia Licences"), which have recently been awarded to Stellar. The proposed joint ventures remain conditional upon completion of due diligence by Citigate and the parties entering into definitive joint venture agreements ("JVA") for each project.

Highlights of proposed Baoulé Joint Venture:

· Staged earn-in by Citigate of up to 75% of the Baoulé project

o Phase-1 expenditure of US$1.5 million for 25% equity in Baoulé

o Phase-2 expenditure of US$2 million for a further 25% equity in Baoulé

o Phase-3 fully fund a pre-feasibility study for a further 25% equity in Baoulé

· Stellar to be paid an up-front Phase-1 management fee of US$150,000 on signing full JVA

· Stellar to receive 56.25% of gross revenues from Phase-1 trial mining

· Citigate awarded off-take rights on goods exported during the Citigate earn-in process


Highlights of proposed Liberia Joint Venture:

· Two new exploration licences recently awarded to Stellar

· Licences cover areas previously explored by Stellar in 2006/7 which returned positive results

· Staged earn-in by Citigate of up to 85% of the Liberia licences

o Phase-1 expenditure of US$250,000 for 25% equity in the licences

o Phase-2 expenditure of US$2 million for a further 25% equity in the licences

o Phase-3 expenditure of US$4 million for a further 35% equity in the licences

· Stellar to be paid an up-front Phase-1 management fee of US$25,000 on signing of full JVA

· Stellar to receive pro-rata revenues from any diamond sales during any phase of earn-in

· Citigate awarded off-take rights on goods exported during the Citigate earn-in process

Stellar Chief Executive Karl Smithson commented:

"The terms of the joint ventures are highly attractive to Stellar in that we have essentially secured a free carried interest at both Baoulé and our new Liberian licences. Importantly, we will receive a proportion of revenues from on-going trial mining at Baoulé at zero cost and have an up-front payment for managing the projects during the first phase of work. These joint ventures allow the key management of Stellar to focus efforts on the development of our high-grade Tongo project in Sierra Leone as we progress towards the mining phase, whilst retaining equity positions in both the Baoulé and Liberia projects."


Citigate Chief Executive Tohib Iyiola commented:

"Adding the Guinean and Liberian joint venture agreements to Citigate's portfolio gives us substantial leverage in the Gulf Cooperation Council by securing additional assets in two of West Africa's most prolific diamond producing nations. With one mining project already in trial mining production, Citigate is working to rapidly expand its portfolio of projects for its West African diamond operator, Safa Afrique, to develop and flourish."

***More from Link Below***

http://www.moneyam.com/action/news/showArticle?id=5387070

19 August 2016

Stellar Diamonds plc


Potential Transaction & Suspension of Trading on AIM


Stellar Diamonds plc, the London listed diamond development company focused on West Africa, announces that the Company's ordinary shares will be suspended from trading on AIM with effect from 07.30 a.m. this morning pending announcement of a potential transaction ("Potential Transaction"), which, if completed, would be classified as a Reverse Takeover under the AIM Rules for Companies and would require the publication of an admission document and also be subject to shareholder approval. There is no guarantee that the Potential Transaction will be completed.

Accordingly, trading in the Company's shares on AIM will be suspended until either an admission document is published or the Company announces that the Potential Transaction will no longer be proceeding.

The Company intends to make a further announcement in respect of the Potential Transaction in due course.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
http://www.moneyam.com/action/news/showArticle?id=5400866

22 August 2016
AIM: STEL
Stellar Diamonds plc

Update on Potential Transaction

Stellar Diamonds plc, the London listed diamond development company focused on West Africa, is pleased to announce further details in respect of the potential transaction which was announced on 19 August 2016. Stellar has agreed a proposed transaction with Octea Mining Limited ("Octea") to combine Stellar's Tongo kimberlite diamond project with Octea's adjacent kimberlite diamond project, Tonguma, and to bring both assets into production under the same production infrastructure (the "Potential Transaction") in Sierra Leone. The Potential Transaction, if completed, would be classified as a Reverse Takeover under the AIM Rules for Companies and would require the publication of an admission document and also be subject to shareholder approval. Accordingly, trading in the Company's shares on AIM will remain suspended until either an admission document is published or the Company announces its or Octea's withdrawal from the Potential Transaction.

Highlights

· Combined inferred JORC diamond resource of 5 million carats brought into a single mining operation

· Diamond grades up to 290 carats per hundred tonne ("cpht")

· Average diamond value of US$193 and US$270 per carat for Tonguma and Tongo respectively

· Exploration target of up to 8 million carats

· Opportunity presents enhanced production levels and operational margins, when compared with a stand-alone Tongo mining operation

· No cash acquisition costs to Stellar who will fund and operate the enlarged mine development

· Stellar to preferentially recoup repayment of development capital prior to paying a royalty and net profit interest to Octea


Stellar's Chief Executive Karl Smithson commented:

"The Proposed Transaction, if completed, will be transformational for Stellar and its shareholders. Once in production the combined diamond mining operations will be the second largest in West Africa with an estimated maximum output at full production of approximately 250,000 carats per year of high value diamonds. The high grade and high value nature of the kimberlites to be mined are compelling and the combination of operations should provide meaningful cost synergies that will enhance Stellar's projected operational margins. Using the available infrastructure at Tongo and Tonguma, we expect diamond mining operations to commence within the first 12 months post completion of the Proposed Transaction."

Octea's General Manager Christo Swanepoel commented:

"We are very excited to be combining Octea's Tonguma project with Stellar's Tongo project and bring the enlarged project into production under Stellar's operational management. Stellar has long-standing expertise in Sierra Leone and the Tongo region in particular, which we believe will be of great benefit to the project. In addition, the enlarged project should significantly increase local skilled employment for many years to come which in turn will support the local economy as well as generate significant funds for the Sierra Leonean Government."

Further Information

Stellar has conducted extensive technical due diligence on the Tonguma project and has subsequently entered into detailed, exclusive non-binding terms with Octea to acquire the Tonguma asset (the "Agreement"). The Potential Transaction remains subject to a number of conditions including further due diligence by the Company; Stellar raising a minimum of US$25 million (through a combination of equity, debt and other hybrid products) to fund the combined project into production (the "Fundraise") and entering into final and binding transaction documentation with Octea. Both Stellar and Octea have had detailed discussions with the relevant regulatory authorities in Sierra Leone, and the parties will also seek to obtain support from the Ministry of Mines in Sierra Leone for the Potential Transaction. Accordingly, there is no guarantee that the Potential Transaction will ultimately occur or that it will complete on the terms set out in this announcement.


Stellar has engaged London based Mirabaud Securities ("Mirabaud") as Financial Adviser for the Proposed Transaction. Mirabaud has a successful track record of raising funds in the resources capital markets.

Proposed Transaction Structure

Under the terms of the Potential Transaction as detailed in the Agreement, Stellar Diamonds Ltd, a wholly owned subsidiary of the Company, will transfer the shares of its subsidiary Sierra Diamonds Limited into a newly incorporated company ("NewCo") which will then acquire the shares of Octea Mining Limited's subsidiary Tonguma Limited. Stellar would be issued with 100% of the voting 'A' shares in NewCo while Octea would be issued with 100% of the non-voting 'B' shares in NewCo. Stellar's 'A' shares will give the Company full legal and management control of NewCo and the mining operation. Octea's non-voting 'B' shares in NewCo will entitle Octea to receive royalty payments of between 5% to 10% of the combined revenues of Tonguma and Tongo (the "Enlarged Project") and a 25% economic interest in the net cash flows of the Enlarged Project. Furthermore, Stellar and Octea have agreed a preferential repayment structure for the initial investment amounts of both parties. Under this structure Stellar will recoup its initial investment of at least US$25 million while Octea will pro rata recoup a maximum of US$5 million during the same period, in return for Octea contributing a 50 tonne per hour production processing plant to the Enlarged Project. Any royalty payments and net profit share due to Octea under the Agreement will only commence once the total initial investment amount of both parties has been fully repaid by NewCo. There is therefore no upfront acquisition cost to Stellar in terms of the Potential Transaction.

Background

Stellar's Tongo project has a JORC inferred resource of 1.45 million carats at a grade of 165cpht. The current mine plan for Tongo assumes a conservative lower grade of 120cpht with an average diamond value of US$270 per carat. A further three high-grade kimberlites are present in the licence area though these have not yet been drilled into resource.

The Tonguma project comprises a 25 year mining licence (granted to Octea in 2012) covering an area of 124 square kilometres in the Lower Bambara Chiefdom, Kenema District, in the Eastern Province of Sierra Leone. The Tonguma project is adjacent to and contains the on-strike continuation of the diamondiferous kimberlite dykes which are being explored by Stellar within its Tongo project. A mining licence at Tongo is in the application process with the Ministry of Mines. The two licences together cover the whole of the renowned Tongo diamond fields, which includes a number of high grade and high diamond value kimberlite dykes.

Octea has undertaken extensive exploration activities at Tonguma including over 58,000 metres of diamond drilling as well as bulk sampling which has produced approximately 7,250 carats of which over 3,500 carats has been used for diamond valuation. An independent JORC inferred resource of 3.45 million carats has been estimated at grades of up to 290cpht and average diamond values of US$193 per carat, to a maximum depth of 200 metres which has led to a total inferred carat resource of approximately 5 million carats being estimated for both projects.


The combination of very high grade and diamond value at Tongo and Tonguma yields potential in-situ ore values of up to US$560 per tonne.


Independent consultants have also estimated a significant further exploration target on the Tonguma licence, which, based on the mid-range grade and tonnage estimates, results in a potential exploration target of a further 8 million carats. It is the intention to bring the "exploration target" into the JORC resource category in due course, however, these estimates remain conceptual in nature and it is uncertain if further exploration will result in estimation of a mineral resource.

A full independent competent person's report on the Tonguma Project and existing Stellar projects including Tongo is being prepared by Toronto based MPH Consulting and will be included in any admission document, which is published in connection with the Potential Transaction.

Future Mining Strategy

Given the close proximity of the two projects, the Potential Transaction, if completed, should allow Stellar to undertake both surface and underground mining across both licences. It is envisaged that processing would be undertaken centrally, utilising the existing 50 tonnes per hour production plant which will be relocated to the project area from Octea's Koidu mine, approximately 60 kilometres North of Tonguma. Through mining two separate resources and centrally processing ore, the Company expects to be able to operate more efficiently thereby realising a number of cost savings, and generating significantly increased production rates. This should also have a meaningful impact on Stellar's future revenues and margins.



The initial capital outlay for Tongo as a stand-alone project has previously been reported by Stellar at an estimated US$25 million. Independent consultants Paradigm Project Management ("PPM"), who together with SRK Consulting ("SRK"), are preparing the combined Tongo/Tonguma mine plan, estimate the initial capital requirements at approximately US$40 million (excluding working capital) to establish production for the combined project. The Enlarged Project would, however, also lead to significantly higher production levels and revenues than just the Tongo mine alone. The final Tongo/Tonguma mine plan by PPM/SRK will be received in the near future and will provide significantly more detail on the production rates, revenues and capital/operational costs.

The Company will make further announcements in due course as and when appropriate.

Review by 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 27 years' experience.
http://www.moneyam.com/action/news/showArticle?id=5401553

5 October 2016
Stellar Diamonds plc
 
Preliminary Economic Assessment for the proposed Tongo-Tonguma Mine
 
Further to the announcement on 22 August 2016 on the proposed transaction ("the Transaction") (the "Transaction Announcement") between Stellar Diamonds plc ("Stellar" or "the Company") and Octea Mining ("Octea") to combine their adjacent Tongo and Tonguma diamondiferous kimberlite dyke properties in eastern Sierra Leone, Stellar announces the results of an independent Preliminary Economic Assessment ("PEA") for the combined mining project ("the Project"). 
 
The PEA demonstrates a financially robust and high margin 21 year life of mine over an initial resource of 4.5 million carats. The PEA also recognises considerable upside exists from additional high-grade kimberlite dykes on the properties which are not yet categorized into resource.
 
Highlights: 
·      Estimated pre-tax Project NPV(10) and IRR of $172 million and 49% respectively
·      Projected life of mine Project revenues of $1,518m with operating costs of $847 million
·      Estimated operating margin of 50% over the life of mine
·      First production expected within 12 months, ramping up to over 200,000 carats p.a. in 4th year
·      Expected Capex of $31.8 million in first two years (including 15% contingency)
·      Estimated 3.96 million carats recoverable from the initial 4.5 million carats resource at a +1.18mm cut-off

·      Recoverable diamond grades and values for first three kimberlites to be mined of:
o  Kundu: 260cpht and $209 per carat ($543 per tonne)
o  Lando: 220cpht and $209 per carat ($440 per tonne)
o  Tongo: 100cpht and $310 per carat ($310 per tonne)
·      Exploration target of up to 8 million carats in addition to existing resource
 
Chief Executive Karl Smithson commented:
"The PEA of the combined Tongo-Tonguma mine demonstrates robust financial returns for a modest capital requirement and supports the Board's decision to pursue this strategic acquisition.  Three kimberlite dykes, Kundu, Lando and Tongo are contained within the mine plan and have compellingly high diamond grades and values and together support a long life of mine. We are further encouraged by the potential which exists to significantly increase the resource base by bringing a number of additional high grade kimberlites that have been discovered to date on both licences into the long term resource base.
 
"We continue to make good progress with the legal and other due diligence processes that are required to complete the Transaction and will provide further updates in due course."

***More via Link Below***

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9 November 2016

Joint Ventures Signed in Guinea and Liberia
 
Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that it has signed joint venture agreements ("JVA's") with Citigate Commodities Trading ("Citigate"), a Dubai based commodities group, over the Company's Baoulé kimberlite project in Guinea ("Baoulé project") and two earlier stage exploration licences in western Liberia ("Liberia project"), which were awarded to Stellar in February 2016. The Company currently has a 75% interest in the Baoulé Project and a 100% interest in the Liberia Project.
 
The attractive terms of the JVA's remain as announced on the 28 July 2016, providing Stellar with essentially a free-carry on the projects, and are summarised as follows:
 
Highlights of the Baoulé Joint Venture:

·      Staged earn-in by Citigate's subsidiary company SAFA Afrique Ltd. of up to 75% of Baoulé;
o  Phase-1 expenditure of US$1.5 million for a 25% shareholding
o  Phase-2 expenditure of US$2 million for a further 25% shareholding
o  Phase-3 fund a pre-feasibility study for a further 25% shareholding
·      Stellar to be paid a Phase-1 management fee of US$150,000
·      Stellar to receive 56% of gross revenues from Phase-1 trial mining
·      Citigate awarded off-take rights on goods exported during the Citigate earn-in process
 
Highlights of the Liberia Joint Venture:

·      Staged earn-in by Citigate's subsidiary company SAFA Afrique Ltd. of up to 85% of the Liberia project;
o  Phase-1 expenditure of US$250,000 for a 25% shareholding in the licences
o  Phase-2 expenditure of US$2 million for a further 25% shareholding
o  Phase-3 expenditure of US$4 million for a further 35% shareholding
·      Stellar to be paid Phase-1 management fee of US$25,000
·      Stellar to receive pro-rata revenues from any diamond sales during any phase of earn-in
·      Citigate awarded off-take rights on goods exported during the Citigate earn-in process
 
For each JVA above, Phase 1 is expected to take place over a 12 month period. In the event of the projects moving to Phase 2, work is expected to take place over a 2 year period with Phase 3 expected to occur over a 3 year period. SAFA Afrique Ltd will be awarded a 25% holding in each project upon receipt by Stellar of initial funds due. This will be adjusted proportionately in the event that the full Phase 1 earn-in funding, which is expected to be received over the 12 month work programme for each project, is not received.
 
Stellar Chief Executive Karl Smithson commented:
"Stellar is focussed on the proposed Tongo-Tonguma transaction in Sierra Leone, as previously announced. As such we are delighted to finalise these joint ventures on terms which are highly attractive to Stellar and our shareholders, who will retain an ongoing interest in the projects, including a proportion of any revenues commensurate with each parties' shareholding during each particular Phase. Stellar's experienced local teams will manage the programmes for at least the first Phase of work, for which the Company will receive a management fee.  We expect the first phase of work to commence on each project towards the end of November.
 
"Importantly, these joint ventures will allow the key management of Stellar to focus on the proposed Tongo-Tonguma transaction in Sierra Leone, which we believe offers significant value potential.  The combined Tongo-Tonguma project demonstrated robust economics in a Preliminary Economic Assessment, with an estimated pre-tax project NPV(10) of US$172 million, an IRR of 49%, and projected life of mine project revenues of US$1.5 billion.  We therefore look forward to focussing our efforts on the advancement of Tongo-Tonguma, whilst retaining exposure to Baoulé and the Liberian projects."

http://www.moneyam.com/action/news/showArticle?id=5445896

22 December 2016
AIM: STEL
Stellar Diamonds plc ("Stellar" or the "Company")

Final Results
 
Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces its final results for the period ended 30 June 2016.
 
Operational Highlights:
Tongo 1.45 million carat ("Mcts") Kimberlite Dyke-1 Project, Sierra Leone:
·      Mining licence application submitted and pending approval subject to environmental licence
·      Environmental impact assessment submitted and approved
·      Potential acquisition of adjacent 3.45Mcts Tonguma mining licence in process
·      Preliminary economic assessment delivered for the proposed combined Tongo-Tonguma project shows robust returns with pre-tax NPV (10) of US$172 million and IRR of 49%
 
Baoulé Project, Guinea:
·      Trial mining has yielded a total of 11,564 carats to date
·      Diamond sale revenues from trial mining have totalled US$1.1 million
·      Largest stone of 55cts (low quality) with high value gems up to 12cts in size
·      Target resource remains 3.3Mcts based on historical drilling and current grades
·      Joint venture signed with Citigate Commodities Trading (post year-end)
 
Liberia Licences:
·      Two exploration licences granted which cover historical positive exploration results in a known kimberlite and diamond province of west Liberia
·      Joint venture signed with Citigate Commodities Trading (post year-end)
 
Financial Highlights:
·      US$3.6 million cash raised in the financial year through a combination of equity and debt funding to complete the Baoulé trial mining exercise and advance the Tongo project and proposed Tonguma acquisition
·      New significant shareholder, Deutsche Balaton, brought in through a combination of equity and convertible loan
·      Cost savings made in previous years maintained with Group administrative costs static at approximately US$1.4 million for the year
 
Stellar Diamonds Chief Executive Karl Smithson commented:
"During the past year we have pursued the key strategy of consolidating our Tongo kimberlite dyke licence with the adjacent Tonguma kimberlite dyke mining licence in order to create an enlarged hard rock mining operation that can offer long-term and sustainable production and revenues.  In the event of completion of the acquisition of Tonguma, the combined mine would have an initial inferred +1.18mm diamond resource of 4.5 million carats, with diamond values ranging from US$209/ct to US$310/ct, from just three (of eight) kimberlite dykes in the licence areas, all of high grade and high diamond values. The PEA demonstrates a life of mine of 20 years with production estimated to be over 200,000 carats per year for the most part.
 
"The acquisition process is ongoing and remains the focus of Stellar (albeit there is no guarantee that it will be completed). In order to focus on the acquisition we undertook to joint venture our Baoulé kimberlite pipe project in Guinea and our Liberian licences to Citigate whilst retaining a free-carried interest in these projects. The earn-in allows for Citigate to fully fund both projects but Stellar's existing teams on the ground will manage the projects for the first phase of work and will also receive a management fee for doing so.
 
"We look forward to the next year with considerable excitement as we pursue a transformational acquisition whilst at the same time maintain exposure to our quality portfolio of diamond assets in West Africa."

http://www.moneyam.com/action/news/showArticle?id=5470225

 ***One to watch for 2017?***

Stellar Diamonds more than doubles FY pretax loss

StockMarketWire.com

Stellar Diamonds has more than doubled its FY pretax loss to $7.06m, from a year-ago loss of $3.02m.

Revenue was $499,725, from $614,228.

Most of the latest loss was due to a $4.3m charge for the impairment on intangibles, from a $605,728 charge in the comparative period.

"All the hard work during 2016 should ensure that 2017 is a very exciting year for the company," it said in a statement.

"Subject to completion occurring, Tongo-Tonguma has the necessary characteristics to transform Stellar into a mid-tier diamond mining company."

http://www.moneyam.com/action/news/showArticle?id=5470283

20 February 2017 
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
 
Tongo-Tonguma Update
Proposed Tribute Mining Agreement
Update on Joint Venture projects
Suspension Update

http://www.moneyam.com/action/news/showArticle?id=5498661