Paragon Diamonds has received a one-year extension to its key Lemphane kimberlite exploration license in Lesotho.
Paragon Diamonds' 85% controlled subsidiary Meso Diamonds owns the mining license, which covers an area of 6.33km² in Lesotho and will expire in June 2013.
Paragon Diamonds chairman Francesco Scolaro said the extension will enable Paragon to continue its rapid exploration of the kimberlite with a view to completing the bulk sampling and moving towards a scoping study as quickly as possible.
"Along with our rapid development of the Motete Dyke system this gives us a great platform to develop into a Lesotho focused diamond producer," Scolaro added.
Following the receipt of the license in May 2011, the company immediately started a rapid exploration programme to evaluate the kimberlite.
When Paragon received the license there was just over a year left until its expiry and minimal work had been undertaken.
The company plans to utilise the extended time to complete the bulk sampling programme that is currently underway, increase the kimberlite tonnage and conclude the evaluation work.
A scoping study will also be started by the company, with the intention of obtaining a trial mining license after that.
African-focussed explorer and developer Paragon Diamonds is currently focused on rapidly developing its Lemphane kimberlite and Motete Dyke exploration projects located in Lesotho.
Image:Paragon Diamonds will use the extension period to complete the bulk sampling programme that is currently underway. Photo: Paragon Diamonds.