SOURCE: World Sports Alliance Intergovernmental Organization

July 09, 2013 13:00 ET

The World Sports Alliance Intergovernmental Organization Announces the Start-Up of a Major Diamantiferous Mining Project in the Central African Republic

NEW YORK, NY--(Marketwired - Jul 9, 2013) - The World Sports Alliance (WSA) Intergovernmental Organization will initiate the diamantiferous portion of the Launch Phase of its Natural Resources Mining Public-Private Partnership Project (WSA-NRM-PPP-CAR 27-11-10) in the Central African Republic (CAR), which was concluded in Bangui, in November 2012, through the development of the diamantiferous deposit of DIMBI, located in south-eastern CAR.

The DIMBI deposit has been the subject of a 2008 NI 43-101 Report prepared by VENMYN for Pangea Diamonds Fields (PDF).

WSA recently asked the World Sports Alliance International Business Consortium (WSAIBC), WSA's Specialized Agency for the effective implementation and operation of its PPP projects within its Member State, to prepare an internal Bankable Feasibility Study (BFS) to provide a high-level overview of the information required on the project for the financing evaluation process.

This BFS Study, which pertains to the exploration and production permit area now held by WSA on the DIMBI area (995 Km2) and its three (3) other diamond mining concessions of Bania, Kotto-Bangana North and Kotto-Bangana South (3,867 Km2), has been commissioned by the WSAIBC. This BFS Study reviews the geology and mineralization of the DIMBI permit area and describes historical and recent exploration programs previously conducted in the area.

Inferred diamond resources have been defined from the VENMYN NI 43-101 Report, according to the CIM definition Standards for Diamond Resources and Diamond Reserves.

The Diamond resources within the permit areas of the four (4) mining concessions of Dimbi, Bania, Kotto-Bangana North and Kotto-Bangana South, are of sufficient size to support a mining operation for the processing of four (4) Million tons per year of gravel diamond/source, producing more than 1.8 Million carats per year, over a 25 year production forecast. The four (4) main diamond mining concessions of WSA are all located in the two (2) most favorable geological areas of CAR.

The WSAIBC's initial approach will firstly be to evaluate the alluvial potential on each of these mining concessions, based on the NI 43-101 Standard Reports. Average values on carats/100 m3, for alluvial deposits in all those four (4) concessions exceed 40ct/100 m3, over the global actual area (3,867km2) covered by WSA's exploitation permits in CAR.

Following this initial evaluation and based on geological relevant elements issued from field exploration, emphasis will then be put on kimberlitic potential identification. WSAIBC intends to intensify exploration to maximize its industrial potential over the diamond resource in CAR (kimberlitic sources).

Therefore, based on the assumptions related to alluvial and kimberlitic deposits, and by establishing an extrapolation from the DIMBI initial evaluation in terms of alluvial diamond potential (USD $130 Million), we consider the actual global alluvial potential of these four (4) initial concessions to exceed USD $500 Million and, including kimberlitic deposits, to exceed USD $5 Billion in global potential.

Mining and processing is planned to begin at the Dimbi concession, at the location evaluated in the NI 43-101 Report. This alluvial deposit evaluated at 1.7 Million tons of diamond gravel will generate a gross income of USD $130 Million over the first two years of production. This will be achieved through free digging performed by excavators and haulage trucks. The ore will be taken to stockpiles at primary crushers and then fed into the ore processing system via front-end loaders.

WSAIBC plans to establish two (2) processing plants of a 250/tph capacity each, for the recovery of global diamond potential from the first four (4) diamond concessions.

In year one (1), the first plant will be established within the Dimbi concession, while intense field exploration will be simultaneously initiated on the concession of Kotto-Bangana North (NI 43-101 report) by DRA Africa Holdings' work team.

In year two (2), both plants will be in operation on each of the Dimbi and Kotto-Bangana North concessions, while intense complementary geological field surveys will begin to characterize the two (2) other concessions (Bania and Kotto-Bangana South) on alluvial deposits and initiate specialized geological surveys on kimberlitic deposits, based on relevant information from primary geological indicators.

Finally, through WSA's positioning in CAR, WSAIBC and DRA Africa Holdings will also benefit from an environment where they will be identified by artisanal miners as the optimal HUB for commercial relations (business transactions on Diamonds). This potential supplementary business will be developed and organized in venture with the Government of CAR, in such a manner as to maximize this potential additional source of business.

Finally, the said Bankable Feasibility Study (BFS) will enable the raising of the global funding to launch WSA's operation in CAR, expected for the coming fall.

Contact Information

  • For any information, please contact:
    Mr. Jacques Bouchard
    Assistant to the President and Senior Advisor for Politic Affairs
    Email.: jbouchard@wsaigo.org
    tel. : (001) 514 927-0007

    -or-

    Mr. Olivier M. Latulippe
    Chief of Staff of the Executive office of the President of WSA
    Tel. +1 (646) 299-9091
    Email: presidentlemieux@wsaigo.org
    WSA: Tel. +1 (212) 202-1629