Southern Africa attracts juniors

Southern Africa, home of some of the world’s largest diamond mines, has attracted several Canadian juniors aiming to become overnight diamond producers.

Near Kimberley, South Africa, Stow Resources (VSE), Dryden Resource (VSE) and SouthernEra Resources (TSE) are investigating the potential of the Leicester kimberlite.

Recently, the partners recovered 149 diamonds with an average value of US$200 per carat while processing the first 3,914 tonnes of a 10,000-tonne bulk sample. The parcel includes 44 stones with an average weight of 1.5 carats. The group is now launching a $2.4-million, 80,000-tonne bulk sampling program and building a 60-tonne-per-hour processing plant scheduled for completion in August.

The trio has the option to earn an 80% interest in the mine by spending $8 million. When vested, Stow and Dryden will hold 30% each and SouthernEra will hold 20%.

In Zimbabwe, Redaurum Red Lake Mines (TSE) has purchased an option to acquire Cornerstone Investments, a mining company with a 50% interest in an operating diamond mine.

The new mine, which has produced 28,000 carats since commencing production in 1992, is estimated to host reserves of 17.5 million tonnes. About 20,000 carats have been sold to date for gross proceeds of more than $1.1 million. The mine is part of a 70-hectare, 25-year mining concession. If the option is exercised, Cornerstone will acquire 20.2 million shares, or 50%, of Redaurum, which plans to raise $5 million in equity financing for the purchase.