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Paragon Diamonds: Lemphane Scoping Study Commences

Contributed by Fox-Davies Capital

Paragon Diamonds announced that the Lemphane Water Pipeline is now complete and drilling has commenced.

Following the approval of the August 2012 application for a water use permit from the Malibamatso River by the Dept. of Water Affairs announced in December 2012, the Company is pleased to announce the successful completion and testing of the necessary pump installation and pipeline. The installation consists of a low-pressure water extraction pump, surge tanks, generator station and high pressure booster pump at the Malibamatso River, circa 1,500 m from, and 300 m below the Lemphane bulk sampling plant, as well as a high-pressure steel and HDPE pipeline to bring water at 40 bar pressure to the process plant dam. The system is designed to safely deliver the required 500 m3/day of process water to enable the bulk sampling plant to operate at its full design capacity.

Drilling has also commenced with Rodio Geotechnics Ltd. successfully mobilizing one of their C910 crawler diamond drill rigs to the Lemphane site, and commencing drilling on the first of a series of six planned holes. All holes will be rotary diamond core drilling, initially in the "PQ" core size for surface casing through the upper weathered kimberlite, and in "HQ" and "NQ" core sizes thereafter. Four holes of circa 380m depth are planned to intersect the kimberlite/basalt contacts at a depth of 350 m below mean surface, as well as two 400+m holes to determine characteristics at depth.

The first hole commenced from a central position in the kimberlite, drilling at a 70deg inclination angle, to an azimuth of 315deg (NW). The drilling is being guided by surface mapping and geophysical modelling undertaken to date on the kimberlite. All drill cores are being stored on site and will be logged and stored in a purpose-built core shed being constructed for this purpose.