RSS UpdatesCompany Information for Mantle Diamonds Ltd
Company Statement
Mantle Diamonds Limited is a private global diamond resource company (registered in England & Wales) with projects at varying levels of exploration and development in the Canada, Finland, DRC, Liberia and Mali. Established by Lester Kemp and Rupert Baring in September 2005, the company is currently held by a variety of institutions and private investors. Originally founded on grass roots exploration projects, the company is now focused on developing a strong cash flow business model and has as such acquired near term production assets which will enhance shareholder value.
Why Mantle Diamonds Limited? Our planet has a fairly complex layered structure, with a relatively thin crust overlying what is known as the mantle. It is here in the mantle that diamonds are formed, under intense pressure and temperature. As diamonds originate in the mantle, it was fitting that the company was named Mantle Diamonds Limited.
The current global credit crisis has created exceptional buying opportunities with publicly-listed diamond companies trading at a substantial discount to their asset values. The company plans to use it's access to capital to fund one or more acquisitions in the near future.
The company is also looking for strategic investment partners (family funds / sovereign wealth funds) to help fund the company's growth by industry consolidation.
Strategy
Our company is focused purely on kimberlite (the primary source rock for diamond) exploration and development. We believe that kimberlite projects will provide long term projects with considerably more resource than conventional alluvial deposits.
Furthermore, we believe that as diamonds are a global business, Mantle should have a global portfolio of projects, which helps to reduce both country/political and geological risk.
We remain committed to preserving and enhancing shareholder value by controlling the marketing rights to our diamonds, and have strong links with Global Diamond Tenders in Dubai.
Current Operations
Finland
Kuopio – Lahtojoki
In January 2008 the company signed a Joint Venture (JV) Agreement with Kopane Diamond Developments Plc (formerly European Diamonds Plc). The JV allows Mantle to earn a 70% in Kopane’s Finnish assets, which includes the 1.8 hectare Lahtojoki kimberlite pipe. Mantle Diamonds has completed a positive Scoping Study Report on the project and is now embarking on a full feasibility study of the pipe. During the first quarter of 2008 Mantle completed a diamond drilling programme into the Lahtojoki kimberlite pipe comprising 11 shallow angled holes totalling 495m. This programme was carried out to provide a better understanding of the surface outline of the kimberlite beneath the till cover. During this period an environmental permit was obtained to carry out a bulk sampling programme at Lahtojoki. In order to expose sufficient kimberlite for the bulk sample a significant amount of overburden till was stripped.
A detailed design was generated following geotechnical and pit mining consultancy studies carried out Golder Associates and AMC Consultants. During the second quarter of 2008 Mantle signed an agreement with Hartikainen Oy, an experienced surface mining contractor to commence stripping work at Lahtojoki. To date over 50,000m³ of overburden till has been stripped over Lahtojoki. Mantle plans to collect approximately 5,000 tonnes of representative kimberlite sample from surface trenching and a large diameter Kelly Bar Bauer drill rig during the early half of 2009. After processing this material, the company will have a sufficiently large enough parcel of stones to evaluate and calculate an average price per carat. This figure will feed directly into our economic model and determine whether the pipe is viable to become a working mine. If it does, the Lahtojoki pipe will become the first diamond mine in Western Europe.
Liberia
On the 21st January 2008, Mantle signed a Letter of Intent (LOI) with Provider International on the latter’s 853 km² Hope Concession on the border with Sierra Leone. Preliminary sampling has all ready been completed by Provider and Mantle will arrange for all 628 samples collected to be sent off to MSA’s laboratory in South Africa for analysis in March 2008.
At the end of September 2008, all samples had been analyzed and a large number of kimberlitic ilmenites have been identified, suggesting multiple kimberlite sources within the licence area. The results are currently being evaluated by our technical team and the underlying owners of the licences.
Canada
SouthernEra Diamonds Inc / Mwana Africa Plc: Mantle is currently in advanced stage discussions with Mwana Africa Plc (who recently acquired SouthernEra Diamonds Inc) to acquire the entire Canadian assets of SouthernEra. The Canadian assets consist of a ~ 500,000 acre land package in the North West Territories (NWT) around the Diavik, Ekati, Snap Lake and Gaucho Kue diamond mines, as well as a ~ 30,000 acres of ground in northern Ontario close to De Beers’ Victor Diamond Mine.
Zimbabwe
Mantle has recently signed two Letter of Intents (LOI’s) with two separate local groups in Zimbabwe who purport to hold diamond ground in the country. In view of the current political and operational risk in Zimbabwe at the moment, Mantle is conducting an extensive legal and technical due diligence of the assets that are on offer.
Russia
Mantle is currently in discussion with a group of Russian Geologists who hold a majority interest in a portfolio of diamond projects in the Arkhangelsk region of NW Russia. As a hedge, Mantle has also acquired a small equity interest in the corporate vehicle (holding this ground) and may increase this position if the opportunity presents itself.
DRC
In January 2009, the company was informed by BHP Billiton of its intention to withdraw from the Joint-Venture on the Eastern Licences. This Joint-Venture has now terminated and the company is in discussion with another major mining house who has expressed an interest in the licenses.
Lesotho
The Kolo kimberlite pipe is located approximately 60km, by road, southwest of Maseru. The project may be reached by main tar road with a small 4km dirt road leading to the Kolo kimberlite. The journey time from Maseru to site is approximately 45 minutes.
The project area is located in the lowlands of Lesotho approximately 1,500m above sea level, and experiences a relatively mild climate. Climatic conditions are significantly less harsh than in the highlands. The average annual rainfall is 600-800mm and generally falls within the summer months of October to March.
The mild climatic conditions, reasonable annual rainfall (suitable for dam water storage) and proximity to the international airport and Maseru are all positive factors for the Kolo project.
The Kolo pipe has a surface area of approximately 1.2 hectares and intrudes Karoo sandstones of the upper Beaufort and lower Stormberg groups and a late Karoo dolerite dyke. The pipe is therefore Cretaceous in age. The pipe outcrops on a topographic rise and benefits from downslopes on several sides, which will reduce the waste:ore strip ratio of an open pit.
The pipe is an irregularly-shaped body, elongated in a NW-SE direction. The NW and SE lobes comprise softer more weathered kimberlite with a higher country rock and mantle zenolith content than the central more resistant kimberlite.
Past work has shown that the softer kimberlite has a significantly lower grade then the central portion( possibly due to the greater dilution by country rock zenoliths) but both types have a similar rock chemistry. If the Karoo sequence was originally at a similar level to that in the Highlands then a significant amount of erosion of the original pipe has taken place due to the Karoo erosion (at least 2km). This being the case the current pipe level is probably in the lower diatreme phases.
Geographical Spread
Canada (NWT & Ontario)
Finland
DRC
Liberia
In the pipeline: Zimbabwe & Lesotho
Board of Directors and Key Management
| Lester Kemp | Managing Director |
| Rupert Baring | Executive Director |
| Mike Brennan | Technical & Operations Director |
| Nathan Adamson | Group Financial Controller |
| Carlos Fernandes | Office Manager |
| Non-Executives: | |
| A. James Macdonald |
Company Address1st Floor, 100 Pall Mall
|
Year End31st December |
Major Shareholders
| Management | ~ 15% |
| Institutional & Private Investors | 85% |
Related News
17/10/08 - Mantle Diamonds Ups The Pace And Quality Of Its DealsMost Recent Statement
24/02/09 - Issue of equity to Mantle Diamonds Limited10/10/08 - Disposal of interest in Angel Diamonds by Thabex to Mantle Diamonds
06/12/07 - Announcement of Joint Venture
16/04/07 - Finance Director Appointed
12/04/07 - Pre-IPO 2 financing raises £1.8 million – 20% oversubscribed
19/02/07 - Global Signs Option Agreement with Mantle Diamonds Ltd