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Paragon Diamonds: Lemphane Scoping Study Commences

Contributed by Fox-Davies Capital

Paragon Diamonds has commissioned three major sub-contracts towards the development of its Lemphane Kimberlite Project in Lesotho. These include Paradigm Project Management to undertake a scoping study towards a planned Mining Lease Application, Rodio Geotechnics contracted for an initial 2,000m deep delineation drilling programme and AMEC commissioned to undertake geological and 3D modelling of the Lemphane Kimberlite.

This is very positive news from Paragon. Paradigm Project Management, a multidisciplinary mining consultancy with extensive operational experience in Lesotho, has been contracted to undertake a first-pass scoping study to design an operational model for the development of the Lemphane Kimberlite. The study, which will be completed and delivered to the Company by the end of February 2013, will be utilized as supporting documentation towards a Mining Lease Application which the company intends to prepare and submit to the Lesotho Department of Mines (Ministry of Natural Resources) during Q1-2013. The study will include open-pit mine designs, tailings and waste rock disposal options as well as process plant design and capital and operating costs estimates.

Elements of this study are already at an advanced preparatory stage. The initial 2000m drilling programme consists of up to six holes to a maximum depth of 400m. The drilling equipment is due to be mobilized and commence drilling during January 2013. The objective of the programme is to determine the internal structure and dimensions of the Kimberlite body to a base depth of circa -350m below mean surface, beyond the likely maximum open-pit development depth. This programme will be followed by a more extensive 3,000m campaign provisionally in Q2-3 of 2013, to accurately delineate the Kimberlite from surface to -250m. AMEC, one of the world's leading engineering, project management has been commissioned to deliver a full geological model of the Lemphane Kimberlite. The study programme is anticipated to commence in February 2013 and continue for several months. The objective is to deliver a clear understanding of the internal structure of the Kimberlite with regard to geology and grade distribution, which, on completion will be integrated with the geology mapped at surface as well as the surface bulk sampling results. The ultimate objective is a well constrained resource in three dimensions, yielding reliable tonnage, grade and ore value data.