Stellar Diamonds has received environmental approval for its wholly owned Tongo Dyke-1 project in Sierra Leone.

The company obtained a letter of approval for its environmental, social and health impact assessment (ESHIA) from the Environmental Protection Agency (EPA) in relation to the mining licence application that was submitted for the project in January.

Stellar Diamonds chief executive Karl Smithson said: "The approval of our ESHIA marks another key step in the process of obtaining the mining and environmental licences that will allow for the development of the 1.45 million carat diamond resource at Tongo Dyke-1, one of four kimberlite dykes at our Tongo project.

"This will allow for the development of the 1.45 million carat diamond resource at Tongo Dyke-1."

"We have also recently successfully concluded the surface rental agreement with the landowners and other key stakeholders and this will now be incorporated in to a legally binding agreement."

The mining licence application still requires approval from the Minerals Advisory Board, the company said.

A positive preliminary economic assessment (PEA) of the Tongo kimberlite diamond project carried out in August 2015 demonstrated an NPV of $53m and IRR of 31% through mining almost one million carats over an 18-year life of mine.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company engaged consulting company Paradigm Project Management to conduct the PEA over the 1.45 million carat inferred resource of the project.

Initial investment during the first four years is estimated to be $24.8m, which will enable the establishment of surface and underground mining.