This morning, Canada’s Afri-Can Marine Minerals (TSXV:AFA), an acquisition, exploration and development company that targets marine diamond deposits, made some progress toward its goal of restarting mining at Mining Lease 111 (ML 111) with the completion of a prefeasibility study.

Diamonds from ML 111, which is located off the coast of Namibia, were last sold in 2008; Afri-Can has the option to earn an 80-percent interest in the lease from Diamond Fields (OTCMKTS:DFIFF).

Key points from the prefeasibility study include:

  • Estimated probable diamond reserves at ML 111 sit at 319,000 carats at an average grade of 0.24 carats per square meter; that’s based only on the economically extractable portions of the indicated mineral resource detailed in Afri-Can’s October 1 press release.
  • The average price for diamonds from the lease is US$484 per carat.
  • The seabed crawler system is the most efficient mining method for ML 111.
  • Afri-Can will receive about $20.4 million in total net earnings before interest and taxes for the first two years of the life of a mine at the lease.

The upshot of the study is that ML 111′s probable reserves can be economically mined, and “mining operations should commence as soon as practicable.” It also recommends that sampling occur in areas containing an inferred resource so that “more Indicated Resources and thus additional Probable Reserves” can be generated; further, an exploration program should be created.

Commenting positively on the news, Pierre Léveillé, Afri-Can’s president and CEO, said, “[w]e are very pleased with this Pre-Feasibility Study. It confirms that ML 111 forms a strong basis for the start of a mining venture that will provide regular development and value for our shareholders.”

Moving forward, Afri-Can plans to concentrate its efforts on restarting production at ML 111 as soon as possible. At the moment, the company is putting together a sampling program “that will serve to establish mining blocks and mining grades” and “increase some or all of the Inferred Resources to the Indicated category.” From there, the plan is to design a complete mine plan.

Shares of Afri-Can are currently up 10 percent, trading at $0.55 each.


Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. 

Editorial Disclosure: Afri-Can Marine Minerals is a client of the Investing News Network. This article is not paid for content. 

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Marine Diamond Mining