Project History

DiamondWorks Ltd acquired all the mineral assets of Branch Energy Limited, including the Koidu Kimberlite Project.

DiamondWorks Ltd approved funding for a bulk sampling programme at the Koidu Kimberlite Project.

Commencement of construction of a 20tph DMS plant and associated mining infrastructure for the bulk sampling.

CEMMATS Group Limited completed a Baseline Environmental Study.

Consulting firm TERRACONSULT completed a due diligence review of project and proposed a bulk sampling programme.

Plant ready to be commissioned.

Declaration of force majeure over Koidu Kimberlite Project.

A Joint Venture Agreement was signed between Energem (DiamondWorks) and Magma Diamond Resources (Pty) Limited for the re-development of the Koidu Kimberlite Project. Magma acquired a 50% equity stake in the Project.

An Energem (DiamondWorks) management team visited Sierra Leone to conduct a preliminary study on the status of the project, and the political and security situation in the country.

A technical team which included design engineers from Bateman Minerals Ltd, a geologist, mining engineer and Energem (DiamondWorks) management conducted a site visit to undertake a detailed analysis of the technical status and requirements for the construction of a processing plant and all related infrastructure.

In August 2002, Bateman Minerals (Pty) Ltd submitted a site visit report and a design proposal for the construction of the plant, crushing plant, processing plant, final recovery plant, tailings, maintenance, water supply, dewatering and electricity supply.

Energem (DiamondWorks) and Magma commissioned Badger Mining and Consulting (Pty) Limited ('Badger') to undertake a conceptual mine design on the Koidu Kimberlite Project.

As part of this mandate, Badger digitally captured available historical mining and geological mapping information, and generated orebody models for the two Koidu kimberlite pipes. Badger also determined optimum production rates, considered equipment and explosives supply, determined the capital expenditure that would be required to bring the operation into production and quantified the costs involved over an initial four-year production schedule.

During the reassessment of the project, Badger was provided with historical geological and mining plans, which were mapped at different elevations, on different survey grid systems and with different geological legends. Badger standardised the maps, captured the information digitally and imported the data into SURPAC 2000 Vision mining software.

The geological contacts and existing pit outlines served as a basis for the generation of the rudimentary geological model and conceptual mine design for No. 1 Pipe and No. 2 Pipe.

African Explosives Limited ('AEL') was approached to determine an initial blast design for the ore and waste material for the two kimberlite pipes. AEL took into account planned pit angles and pre-split techniques in their design, as well as parameters and assumptions specific to the kimberlite, granite and jaw crusher size. AEL also provided cost estimates which were used by DiamondWorks in their budget estimates and by Badger in their calculations of operating costs.

Venmyn Rand (Pty) Limited ('Venmyn') was appointed to consolidate the historical information, review the technical and economic information contained in the various consultants' reports and to prepare an independent technical report on the Koidu Kimberlite Project. The results of the viability study were considered adequate to proceed with development of the project.

The joint venture partners agreed to a budget of $14.5 million for the construction of a 50 tph DMS plant with associated infrastructure for development of the Koidu Kimberlite Project. Project team was mobilised and arrived on site to commence infrastructure development.

CEMMATS Group Ltd were commissioned to undertake a baseline environmental audit of the project area.

Gemcom Africa commenced work on a preliminary geological model based on historical data. This model formed the basis of the initial diamond drilling programme designed by Gemcom Africa and MSA Projects to delineate the geometry of No. 1 Pipe and No. 2 Pipe.

< 3D view showing planned drillhole traces for No.1 Pipe.

Civil engineering for plant construction commenced.

< Arrival of processing plant components

Commencement of Environmental Impact Assessment, Resettlement Action Plan, Public Disclosure and Consultation Process by Digby Wells and Associates and CEMMATS Group Ltd.

< Public meeting

Fraser Alexander completed the design and recommendations for the slimes dam.

Construction of 50 tph processing plant.

< View of the plant from the grizzly

SRK interim Open Pit Mining Study was completed.

Boart Longyear Inc. completed diamond drilling programme under the supervision of MSA Project's geologists.

< Diamond Drilling of No. 1 Pipe

SRK Consulting conducted a site visit to assess the geotechnical conditions at No. 1 Pipe and No. 2 Pipe and completed geotechnical logging of the drillhole core.

Submission of Environmental Impact Assessment and related studies to the Government of Sierra Leone and World Bank.

Final Commissioning of processing plant began - overburden from No. 1 Pipe fed through the plant.

First hard rock kimberlite from Dyke Zone B in ramp of No. 1 Pipe fed through plant.

< First kimberlite processed

SRK submitted a report on the results of the geotechnical assessment and recommended pit slope angles for the open pit mine design.