Mining License - Gazette, page-128

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aries123

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27/05/15

18:45

Post #: 15362885
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Originally posted by dazzaa ↑

Here are some points from OHW the real poster of that post.
I agree that the grade of a deposit based on a few trench samples is not representative, so once the drilling begins it will become much clearer. The drill (a.k.a. truth machine or rotary lie detector) results will be key
Kimberlites are actually quite easy to evaluate, but it is not cheap.
Microdiamond analysis from core drilling can get you a very reliable estimate on the grade. Mini bulk sampling using a percussion drill (preferably not using a hammer bit) can firm up on the grade, generally done on 100m grid, then a targeted trench sample to recover a large enough parcel of diamonds to get a good estimate.
Ideally you want at least 5000 carats, but the experts will get you in the ballpark with 200 carats. i.e they can tell you whether your looking at $10/ct, $100/ct, or $1000/ct. This can assist with the decision to go to the next step.
High grade kimberlites can be tested with HQ core, lower grade kimberlites require large diameter drilling to get a big enough sample for a reliable estimate.
Remember three parameters are important: Kimberlite size, diamond grade (cpht) and value ($/ct). To keep it simple work out the value per tonne of the kimberlite. If it is worth more than $100/t and it is big then it is very significant. If it is big and is worth less than $20/t it would be unlikely to be mined anywhere in the world. $50/t could be mined but not hugely profitable, so probably not in a higher risk country

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Here is a better quote from him,

"To be worth the risk of mining in Angola i suggest you would want at least $100/t and a lot of it. These kimberlites so far are 0.2cpht. To make $100/t you would need an average value per carat of $50,000 per carat, which is 30 times higher value than the Letseng value, which is considered extemely high quality and has lots of Type 2 diamonds."

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Mining License - Gazette, page-128

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Mining License - Gazette, page-128

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