Rio Tinto: Indian Diamond Site “World Class”

It has filed mining lease applications for the diamond project, saying it is a vital step in the development of Bunder.

Rio also announced the exploration target for diamond mineralization at the Bunder project of 40-70 million tons at a grade of between 0.3 and 0.7 carats per ton. The targeted diamond grades are at least three times greater than the grade of the Panna mine, India’s only other hard rock diamond mine.

The miner spent more than $25 million in the past six years exploring in India. The results of a study to evaluate the economic viability of the eight diamondiferous lamproites it explored are expected to be released by the end of the third quarter.

Work on the Bunder diamond project to date includes mapping, 48 drill-holes and five surface bulk samples. Drilling is continuing and further surface bulk sampling to support diamond valuation is underway, Rio said in a release.

Environmental approval for a 10 ton per hour Dense Media Separation Plant is expected soon from the Madhya Pradesh government, which allows processing of bulk samples at the project site.

Following the completion of the order of magnitude study, a pre-feasibility study would involve further social and environmental studies including further drilling and bulk sampling. In total, Rio has spent over $19 million on evaluation of the deposit.

Another $30 million is planned to be spent on supporting continued evaluation of the deposit.