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Resource evaluation bodes well for Trustco’s Meya Mine investment

Resource evaluation bodes well for Trustco’s Meya Mine investment

After selling a 70% stake in the Sierra Leone Meya Mining diamond mine to Sterling Global Trading a year ago, the Trustco Group has retained a 19.5% share with local investor, Germinate SL holding the remaining 10.5%.

This deal availed the mine with sufficient operating cash to expand exploration, the results of which were released by Trustco in a resource evaluation report this week.

This report is the basis for the upcoming Preliminary Economic Assessment report, providing a comprehensive economic analysis of the Meya River Dyke’s development potential. At the time of the sale to Sterling Global, Trustco’s total Meya investment ran to US$116 million, or slightly more than one third of the group’s total investment portfolio.

The resouce evaluation report estimates the total kimberlite ore body to a depth of 800 metres at just over 6 million tonnes with an inferred grade of 33 carats per 100 tonnes of ore. This should produce nearly two million carats diamonds, valued at US$659 million at US$382 per carat.

Trusto’s cut should therefore be worth around US$128 million.

Trustco Group Holdings Ltd Deputy Chief Executive Quinton Z van Rooyen

Trustco Group Deputy Chief Executive, QZ van Rooyen described the findings in the report as encouraging, adding that the resource estimate confirms the mine’s revenue potential.

The resource evaluation report covers only 2.8 km of the Meya River Dyke, which is less than 5% of the total combined strike lengths of the kimberlite domains within Meya Mining’s licensed area.

Five of the largest diamonds discovered globally have come from this area. Notably, in November 2017, the Meya Prosperity Diamond, the 29th largest diamond at the time, was unearthed at this site and subsequently sold for US%16.5 million.

The mine is expected to scale up commercial production in the current financial year.

The full report is available on the Trustco website at https://tinyurl.com/2twpv78v.


 

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