Company Information for Blina Diamonds NL

Company stock charts - 12 Month chart

ASX; BDI View full financial data

Company Statement

Blina is an extremely active diamond explorer with interests in tenements covering 1750sq km located in the West Kimberley region of Western Australia.  The company is undertaking a range of advanced and regional exploration programs in close proximity to two operating diamond mines run by Kimberley Diamond Company (KDC) in the Ellendale Field.

Blina's exploration projects include three advanced alluvial operations at Terrace 5, Ellendale 9 North and J Channel, plus on-going regional programs following-up several recently completed airborne geophysical surveys.  The objective of the regional work is a complete re-evaluation of the Ellendale Field.  This is expected to lead to the identification of new diamondiferous lamproites and alluvial deposits.  An early success for the program had come with the recent discovery of the Ellendale 9 North alluvial deposit.

Blina's technical staff has 12 years successful exploration in the Ellendale area and have the proven geological experience and technical know-how to locate and evaluate diamond deposits.  Equally important as experience, the company has established camp, mineral processing and laboratory facilities that provide the support needed to undertake a thorough and comprehensive diamond exploration program.

Current Operations

Blina's exploration projects include three advanced alluvial operations at Terrace 5, Ellendale 9 North and J Channel, plus on-going regional programs following-up several recently completed airborne geophysical surveys.

Terrace 5
The Terrace 5 Project is the most advanced of the alluvial programmes and seems closest to a resolution. The indicator mineral trail suggests a nearby lamproite source rock and bulk sampling has revealed several locations with economic diamond grades. If a critical number of such pockets can be found, then a selective mining programme may be achievable. It is seldom that palaeo­channels or river terraces can be continuously strip mined. Of critical importance to the economics of the project is the need to establish a value for the diamond production. If average diamond values approach those achieved for the eastern sections of Ellendale 9 (US$300 per carat) then the potential of the prospect increases dramatically. The high gem content and the large average stone size, are positive aspects of this project.

Ellendale 9 North
Under an agreement with KDC, Blina has the right to explore for and mine alluvial diamonds within the Ellendale Mining Lease.  Ellendale 9 North is a new project targeting alluvial diamonds shed from the Ellendale 9 lamproite. Blina estimates that diamonds worth in excess of A$500 million have been eroded from this pipe since its eruption. Results from this relatively new project have been spectacular.

J Channel
There is overwhelming evidence that the ancient J-Channel river drained from the Ellendale 4 pipe and as such, diamonds in economic concentrations may have been entrapped within these gravels. Much of the historical evaluation was focused on the southern sector. This represents a younger land surface below the breakaway where the channel has been extensively eroded. Blina will concentrate on the 6km section from north of Dome Hill to the Ellendale 4 source. The encouraging grades and the superior diamond quality make this an attractive target. The J-Channel has the potential to support a significant alluvial diamond mine, and future exploration will be aimed at confirming this.

As with the Terrace 5 alluvials, the viability of the J-Channel material will be strongly dependent on the value of the diamonds and the Australian dollar exchange rate. Because the source of the diamonds appears well defined, a smaller number of carats will probably be required for valuation.

THE K1 - K2 LAMPROITE PROJECT
This project area covers 25km2 and is centred on a group of three small lamproite pipes located about 15km to the southwest of the Ellendale 9 Mine. The prospectivity of this project is enhanced by the high percentage of ‘diamond inclusion’ chromites recovered from these lamproites. While the three known pipes provide small but interesting targets in their own right, Blina believes that other lamproite pipes will be located in this largely untested area. The search for more pipes will hinge on the re-evaluation of existing geophysical data, a new electromagnetic survey and termite-mound geochemical sampling programmes.

Regional Projects
In addition to the specific project outlined previously, Blina will conduct comprehensive coordinated regional exploration programmes over large sections of the tenement area. With the entire Ellendale Lamproite Field and extensive surrounding regions available for exploration, Blina will be able to conduct a thorough re-evaluation of the entire Ellendale Field, unfettered by the constraints of tenement boundaries. This has not been possible in the area since the early days of the Ashton Joint Venture.

Geographical Spread

Western Australia

Board of Directors and Key Management

Most Recent Statement