SIERRA LEONE DIAMONDWORKS estimates that US$12.0 million, including US$3.6 million for working capital, is needed to bring the Koidu kimberlite joint venture project into production later this year. Mining of the Koidu kimberlite pipes began in the 1960s, but was interrupted by the recent 10-year-long civil war in Sierra Leone.
An internal project analysis which covered geological appraisal, resource verification, mine design, process plant design, and marketing analysis was positive. Production equipment has been purchased and shipped, but awaits final transportation to the mine site and assembly. Plans call for dewatering the pipes so that construction can begin in the second quarter of this year.
DiamondWorks holds 60% and is operator of the Koidu project. The terms under which MAGMA DIAMOND RESOURCES can earn half of DiamondWorks' interest have been extended to the end of this month.
To discuss the progress of the Koidu project call J. Scott Drever in Vancouver at 604-691-1793 or e-mail [email protected]