Resource Update at Ellendale Demonstrates Increase in Total Resources
Perth, Nov 14, 2013 AEST (ABN Newswire) - Kimberley Diamonds Ltd (
ASX:KDL) ("KDL") is pleased to announce an update to the existing JORC Resource at its flagship Ellendale Diamond Project ("Ellendale"). The revised JORC-compliant Mineral Resource estimate (as at 30 June 2013) demonstrates an increase in total resource tonnes to 97.2 Mt at an overall grade of 3.89 carats per hundred tonnes (cpht).
The result comes on the back of a concerted campaign by the Company to grow its low-risk diamonds sources which included the drilling of 11 RC holes to better delineate the 'Far East Pit' orebody, the excavation of seven bulk samples from the previously unreported 'Lites Stockpiles' and the trial processing of 432,642 t from the 'Low Grade Stockpiles'.
---------------------------------------------------------Source Tonnes Grade Carats Value $/t (cpht) (USD/ct)---------------------------------------------------------Total Resources 97,206,000 3.89 3,778,000 $265 $10.29---------------------------------------------------------
*Rounding of tonnage down to the nearest 1,000 tonnes and carats down to the nearest 100 carats may result in computational discrepancies.
Detailed explanatory notes can be found in Table 1 (Appendix) in link below.
Ellendale is situated approximately 120km east of Derby, in the West Kimberley Region of Western Australia. The resource comprises three lamproite pipes, known as E9, E4 and E4 Satellite and associated stockpiles at E9 and E4. Current operations are at E9. The E4 operation was placed on care and maintenance in 2009 and E4 Satellite has not been mined to date.
The 2013 Resource Statement represents the Ellendale resources at 30th June 2013 and is an update of previous resource statements issued by KDC, under the previous holding company, Gem Diamonds Ltd, to 31st December 2011, subject to the following changes:
1. Removal of depleted ore at E9 from the resource inventory.
2. Update of the geological model at E9 based on in-pit mapping and drilling.
3. Update of the grade model at E9 based on bulk sampling.
4. Update of the low grade stockpile grades based on recent trial mining.
5. Inclusion of the lites stockpiles grades based on recent bulk sampling.
6. Update of diamond valuations based on altered market conditions for all pipes and bulk sample information (E9 and lites stockpile only).
E9 Resource
The E9 deposit is split into an East and West pit with significant differences in grade and diamond value between the two. The East Pit is further subdivided into East Pit North ("EPN"), East Pit South ("EPS"), East Pit East ("EPE") and Far East Pit ("FEP") based on geology, grade and diamond value. West Pit is subdivided into West Pit North ("WPN") and West Pit South ("WPS").
Stockpile Resources
Surface resources at Ellendale consist of ROM stockpiles at E9 and E4, low grade stockpiles at E9 and E4 and lites stockpiles at E9. The lites stockpiles at E4 are not included as a resource.
ROM stockpiles represent mined material awaiting treatment. Grades and diamond valuation are based on the mined resource grades and values.
Low grade stockpiles represent mined material of lower grade not deemed suitable for immediate treatment at the time of mining due to either mining dilution or inherent geological dilution. Grades and diamond valuation are based on trial mining information and discounted mined resource grades and values.
Lites stockpiles represent coarse plant tailings which have recently been sampled. They have potential for future retreatment.
Lites Sampling
Three lites dumps were identified as a large potential resource for prolonging the life of the Ellendale project, therefore a sampling program was proposed and undertaken to provide information on the potential revenues of the dumps and their associated treatability.
Results obtained from the recent lites sampling program have resulted in the 'lites stockpiles' being included in the Ellendale Resources Statement for the first time and equates to the addition of 11.3Mt @ 1.01 cpht to the Ellendale Resource (Table 1 below).
---------------------------------------------------------CLASSIFICATION - INFERRED---------------------------------------------------------SOURCE TONNES GRADE CARATS VALUE $/t (cpht) (USD/ct)Main Lites Dump 9,589,000 1.05 101,000 $926 $9.76Sound Barrier Dump 1,474,000 0.63 9,300 $466 $2.95West Lites Dump 233,000 1.42 3,300 $385 $5.45 ----------------------------------------------------------TOTAL/WT. AVE INFERRED LITES 11,296,000 1.01 113,600 $873 $8.78----------------------------------------------------------
Table 1: The Ellendale 'Lites Stockpiles' Inferred Resource
The lites stockpiles at Ellendale comprise 'light' material floated from the DMS together with a significant portion of 'oversize' material that had been ejected from the front end of the processing circuit during its initial pass. Both the light material from the DMS and the oversize are believed to contain a significant amount of diamonds.
At total of seven bulk samples comprising 100,000 t were taken from three separate lites stockpiles (Table 2 in link below) and across a spectrum of the 'time zones' represented in the dumps. The samples were treated through the normal processing and recovery circuit with the additional step of re-crushing of all +14mm material reporting as oversize.
The largest of the lites stockpiles, the Main Lites Dumps, is also the most valuable at US$926/ct and $9.76/t. It is worth noting that these figures are significantly skewed by the poor result obtained in the largest bulk sample, LS4. This sample was taken from material deposited between June 2008 and May 2009 and represents only 20% of the total Main Lites Dump yet makes up 40% of the collected sample. Successful delineation of zones of higher grade material would increase the average value and $/t of the Resource. Future work will be aimed towards delineating such high grade zones and thus optimising the processing schedule.
Bulk Sampling at E4 Satellite
E4 Satellite is located adjacent to the E4 pipe and 13 km southeast of E9. The E4 Satellite pipe is currently defined as a 15.3 Mt Inferred Resources with a grade of 5.59 cpht containing a total of 856,000 carats. The average value of diamonds found at E4 Satellite, 11.73 USD/ct is higher than that of the large E4 pipe 6.87 USD/ct.
Recently, a bulk sample of approximately 20,000 tonnes has been excavated from the E4 Satellite pipe (Figure 3 in link). The primary purpose of the sample is to improve the statistical confidence of the current diamond value information relating to this pipe. The sample is being road-hauled to the E9 East Plant for treatment during November.
The Company is currently exploring the viability of reopening the mining and processing facilities located at the E4 pipe. Results from the recent bulk sample will provide further indication on the viability of E4 Satellite being including in any restart scenario.
Drilling at E6 Pipe
E6 is the largest diamondiferous pipe discovered in the Ellendale lamporite field yet remains underexplored in light of the attention received by E9 and E4 pipes.
Recently, the Company has drilled 16 RC holes totalling 960 metres, and one 50 metre core hole, into E6 to better delineate a zone of tuffaceous lamproite suitable for bulk sampling. Samples have been submitted for microdiamond analysis with results expected in December 2013.
To view full tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/76186-ASX-KDL-767638.pdf
Contact
Alex Alexander
Executive Chairman
T: +61 2 8243 7501
E: alex@kdl.com.au
Lee-Anne de Bruin
Managing Director
T: +61 8 9426 9888
E: lee-anne.debruin@kdl.com.au
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