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Sierra Leone Project Sells First Diamonds

September 16, 08 by IDEX Online Staff Reporter

Stellar Diamonds said on Tuesday its Kono Kimberlite Diamond Project joint venture, in which it has a 49 percent stake, sold its first diamonds. The project, which is also 51 percent owned by Petra Diamonds, and is Sierra Leone’s only underground diamond mine sold 1,049 carats at a sale last week.

 

The gem sale brings the project a step closer to full scale production and a stock market listing, Stellar said.

 

The Kono project, which plans to apply for a full diamond mining license next year, is currently mining at up to 65 meters depth from two shafts and aims to dig down to 120 meters.

 

The largest diamond sold was 10.55 carats and raised $31,000. Stellar hopes Kono’s revenues will eventually reach $40 million a year, $14 million of which it would pay the poverty-stricken government of Sierra Leone in taxes and royalties.

 

Stellar is majority owned by Mano River Resources,  an exploration and development company engaged in the acquisition, exploration and development of gold, diamond and iron ore properties in Africa. Mano, through its subsidiaries, holds interests in mineral properties located in Liberia, Sierra Leone, Guinea and the Democratic Republic of Congo.

 

Mano penetrated Sierra Leone at the height of the 1991-2002 civil war, which killed around 50,000 people and included countless offenses committed by child soldiers.

 

 

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