Stellar Diamonds plc (LSE:STEL) announced that it has signed a joint venture agreement with Société Tassiliman regarding a diamondiferous kimberlite located in Guinea’s Aredor district.

Highlights include:

• 5 hectare Baoulé pipe is located in Aredor, Guinea’s most renowned diamond mining district
• Historical data suggests a diamond grade range of between 13cpht and 40cpht
• 509 carat parcel sold in 2000 for $157/ct and prices are expected to have since increased
• In-house modelling suggests at a target of over 22 million tonnes and 3 million carats to 300m
• Alluvial mining downstream has yielded a 100ct stone and reported diamond values of over $400/ct
• Stellar can earn up to 100% interest via $5m earn-in for 75% and option to acquire remaining 25%

Karl Smithson, CEO of Stellar, commented:

We are very pleased to have secured an option to acquire up to a 100% interest in the diamondiferous Baoulé pipe. Located in the former Aredor mining concession, which is one of the largest alluvial diamond mining areas in West Africa, the Baoulé area has a history of producing large, high quality diamonds. As yet no primary kimberlites have been developed and the Baoulé pipe has many of the hallmarks of a potentially large tonnage project that can be rapidly advanced.

Click here to read the full Stellar Diamonds plc (LSE:STEL) press release.