Diamond-focused mineral E&D, Oraco Resources, was pleased to report on significant finds of high-grade diamonds in the geologically analogous kimberlite dykes of neighbors Stellar Diamonds and Koidu Holdings (a BSG Resources LTD subsidiary) today, both of whom operate within two miles of ORAC’s 50 sq km concessions in the Nimini Hills area of the Kono District, in eastern Sierra Leone.
Stellar Diamonds operates their Kono Project just under a mile east and then up to the north for about three and a half miles of ORAC’s Nimini Hills holdings and offered exceptional results from the completed bulk sampling from their Lion-5 kimberlite dyke (following in-situ grades represent undisturbed or in place resources):
• 90-cpht (carats per hundred tons) from 346 dry tons of kimberlite (312 carats total)
• $198 per ton based on a $220/carat diamond value model
• Carat values of some individual diamonds up to 4.45ct (including 3.70ct, 3.22ct, 3.07ct, and a 3.0ct) pulled out of the bulk sampling
• Resource mapped over a huge swathe of 1,990 meters, averaging 1.5 meters in width where the bulk sampling was performed
Stellar plans to further define the resource via new drilling program activity (which will also look at the proximal Pol-K kimberlite) and this should shed some more light on the trend for ORAC. You see, the Stellar/Kono dykes run southwest down towards the ORAC holdings, giving us a very positive geological analogy for the company’s acreage.
Exec VP and COO at ORAC, Chris Butchko, underscored the abundance of high grade gem quality diamonds in the findings and was anxious to get his hands on the results from the company’s own geological studies (being conducted by SRK and currently nearing completion). Detailing the directional trend of the dykes from both neighboring sites, we have clear intercepts with the ORAC interests (69% of net revenue division, being value of gross value of recovery less recovery/evaluation costs, held by ORAC’s wholly-owned subsidiary JYORK and 31% held by the Nimikoro Chiefdom).
It is anticipated that the dykes continue well into ORAC territory and shareholders will be delighted to know that confidence is high among management that preliminary studies will be confirmed by the upcoming SRK studies, offering a more concrete portrait of just how good the correlation to neighboring (obviously rich) geology is.
That correlation seems all the more likely when looking at the other vector reported on today, the similarly rich findings on Koidu Holdings’ operation further to the northeast (1.7m east and 8.38m north), where the dykes continue to stretch northeasterly. Koidu Holdings (who has employed over 1.5k workers at their operation) has indicated that returns on their operations have been so good that the on-site plant capacity needs to be expanded 160% to 130 ton per hour (bring the output capacity up to 1.5M tons per month).
So we are looking at a huge chain of kimberlite dykes that run from the northeastern most point in Koidu Holding’s property, southwest through Stellar’s acreage (clearly abundant high grade gems as per today’s data) and likely on into the ORAC land. These findings are in line with the preliminary assessment by ORAC and management eagerly anticipates receiving/releasing the most recent geological data on their Nimini Hills site, once it becomes available for review.
President and CEO of ORAC, Brad Rosen, was very confident of the strategy to secure a network of key alluvial/eluvial assets in this abundant region of Sierra Leone and could not resist expressing how thrilled he and the entire ORAC team are about the potential of Nimini Hills.
Today’s data is indeed tantalizing to investors, especially as the diamond market shows no signs of slowing amid a growing middle-class in countries like China and India, both of whom have shown a strong taste for the gems (particularly India). With no shortage of export markets, a clear roadmap for development, an up-to-date geological study on the horizon, and a substantial overall development/production footprint in Sierra Leone, including their Tailings Number 5 project (some 54.2M tons of diamondiferus gravel, now in the final stages of planning and targeting Q3), Zimmi property (57 sq km in the Pujehun district), and 10-acre Boroma project (near Nimini Hills).
For more information on today’s report, or to stay up to date as more news emerges from Oraco Resources, Inc., please visit the company’s website at: www.OracoResourcesInc.com
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