PROPOSAL TO ESTABLISH A JOINT VENTURE FOR THE EXPOLORATION OF RAW DIAMONDS IN SOUTH AFRICA.
- Sergei Brukovsky
- 3 мая 2023 г.
- 3 мин. чтения
Proposed Diamond Mining Project
A review of the key points of this project:
The diamond mine is a kimberlite intrusion with three pipes on the site. Geophysical airborne surveys have been done on the site, but no commercial mining has yet been initiated.
The size of the property, on which the diamond pipe is situated, is over 50 ha (hectares). The high-resolution magnetic data revealed a large number of dolerite sills and dykes not indicated one 1:250 000 geological map of the area.
Main access to the mine is via a road. The road connects to outlying towns and highways.
The various types of equipment requiring electricity will initially be powered by generators. This will explain the high diesel consumption and cost in the operating cost discussed later in the document.
The second pipe in relation is barely visible and represents a mere opening in the top crust to the kimberlite. No mining has been attempted yet and this further underlines the potential of this site.
1) Underground Reserves
The underground reserves are calculated in respect of the pipes to a depth of 50 meters only.
The fissure responsible for the passage of the kimberlite to the surface measured at a respectable 1 meter.
For the purposes of this exercise, the fissure reserves have not been taken into account, but they do exist.
Geological data is available.
2) Estimates and Valuation
A. The geological reports estimate the first pipe with a surface area of 4 to 5 hectares to contain approximately 7 to 8 million tonnes of kimberlite with approximately 800 000 ct’s of diamonds.
B. The geological reports estimate the second pipe with a surface area of 3 hectares to contain approximately 4 million tonnes of kimberlite with approximately 500 000 ct’s of diamonds.
C. The main fissure has been mapped over at least 3km and 1 m thickness.
D. The yield for the Pipe, based on geological data is at between 15 – 17cphts.
E. Total Carats are calculated by dividing the tonnage by 100 (yield is per 100MT) and multiplying by the assigned carat yield.
The Value assigned of $400 per carat is below the current market rate achieved for rough gem quality diamonds in neighbouring mines, which is closer to $450 per carat.
In the financial projection of the document, the rate of mining production will give a clearer picture of the revenue potential.
What is important to note here is the volume of material in Tonnes that still has to be processed and mined. All calculations were done only to a depth of 50 meters.
1. The geological report indicates that a grade of 15 17 carats per
hundre d tonnes is expected, we did all ca lcula tions on a gr ade of 10
carats per hundred tonnes. The report also indicated a selling price of
$ 450 per carat but we did all calculations on $400 per
2. With completion of the ca pita l repayment, each partner wil l own the
e quipment equal to the pe rcent age of his sh ares.
3. Al l diamond sales will be done through a tender system.
4. The equipment consists of good quality second hand equipment as well
as newly buil t equipment.
5. Courier a nd t ravel costs are not included b ecause it w ill differ every
time
Continued Growth:
This is not a once off transaction, but rather a strategic alliance with a view of a long-term partnership.
Of course, an Exit Strategy will also be discussed, should the need arise, with the provision that existing stake holders have first right of refusal in the sale of shares.
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