MANA Man.Assd.Csh

 

TIDMMANA 
 
RNS Number : 6111S 
Mano River Resources Inc 
21 May 2009 
 

 
 
21 May 2009 
 
 
TSX-V:MNO 
AIM:MANA 
STELLAR DIAMONDS OPERATIONAL UPDATE 
 
 
Mano River Resources Inc the TSX-V and AIM-listed exploration and development 
company focused on gold, iron ore and diamonds in West Africa, is pleased to 
announce an operational update for its 59.6% held subsidiary company Stellar 
Diamonds Limited ("Stellar" or "the Company"). 
 
 
HIGHLIGHTS: 
 
 
  *  Mandala project entered commercial production in April 2009. Over 7,600 carats 
  produced to date at an average grade of 44 carats per hundred tons, including 
  gem and non-gem diamonds of: 
    *       31.33, 12.94, 10.93, 5.79, 4.92, 4.66, 4.22, 3.98 and 3.7 carats in size. 
 
 
 
 
  *  Kono underground trial mining produces 4,400 carats to date, the three largest 
  diamonds being: 
    *      11.95, 11.40 and 10.55 carats in size. 
 
 
 
 
  *  Kono diamond sales realise $125,000 at an average $46 per carat. 
 
 
 
  *  Temporary care and maintenance of the Kono project implemented due to weak 
  diamond market 
 
 
 
OPERATIONAL UPDATE 
 
 
Mandala Mine (85% ownership), Guinea 
 
 
The Mandala alluvial diamond mine, 85% owned by Stellar with 15% Net Profit 
Interest payable to local partners once past capital and operating costs have 
been recouped, is now in production following the successful commissioning of 
the plant on 20 April 2009. The project comprises an independently verified 
diamond resource of 535,000 carats (NI 43-101 compliant). 
 
Since January, the 55km access road from Macenta to Mandala was rehabilitated 
and upgraded and the plant transported to site, where it was erected and 
commissioned within 8 weeks. The plant has a name plate head feed of 100 tons 
per hour and a DMS capacity of 30 tons per hour. Diamond recovery is by Flowsort 
X-Ray with a grease table back-up, all performed under strict security 
conditions. 
Commissioning and initial production material has come from numerous areas 
within the mining concession as the Company effectively embarked on a 
large-scale bulk sampling in order to test the resource and the plant's 
capability to handle the material. This has led to the recovery of some 7,670 
carats at an average grade of 0.88 carats per cubic metre (approximately 44 
carats per hundred tons). The largest diamonds produced to date weigh 31.33ct, 
12.94ct, 10.93ct, though not believed to be of gem quality. However, some 
excellent quality gemstones of 4.66ct, 3.98ct, 3.73ct and 3.33ct have been 
recovered. 
These first diamonds have recently been exported to Antwerp for valuation and 
sale, to test market conditions. 
Modifications to the plant will see the daily production increase from the 
current average of 300 cubic meters per day to around 500 cubic meters per day 
(approximately 1,000 tons per day) in the near future. 
Kono Project (49% ownership), Sierra Leone 
 
 
Underground trial mining has continued at the Pol-K and Bardu kimberlites. Total 
diamonds produced to date is over 4,400 carats. The in-situ grade of the Pol-K 
kimberlite consistently averages 65 carats per hundred tons. However at Bardu, a 
new kimberlite intrusion has recently been intersected and sampled and has 
returned an average grade of 140 carats per hundred tons, with a large frequency 
of +1 carat stones. 
A parcel of 2,697 carats of diamonds was recently exported to Antwerp for sale. 
The parcel comprised mainly of Pol-K goods (80%) with Bardu goods (20%). The 
sale realised $125,000 at an average of $46.34 per carat. By means of 
comparison, in September 2008 a sale of 811 carats from Pol-K and 252 carats of 
Bardu realised average prices of $152 and $52 per carat respectively ($128/ct 
average). 
The difference between the two sales values clearly demonstrates the present 
adverse conditions in the diamond market. On this basis the Company and its 51% 
joint venture partner, Petra Diamonds Limited, have agreed to place the Kono 
project onto temporary care and maintenance until the rough diamond market 
improves sufficiently to achieve more reasonable sales values for what the 
partners consider to be good quality run of mine diamond product. 
 
 
Karl Smithson, CEO of Stellar commented: 
 
"We are very pleased at the 
progress made in bringing the Mandala project into production and the team on 
the ground needs to be commended for their efforts. The initial grades at 
Mandala are high for an alluvial diamond project and with the confirmed presence 
of some larger diamonds, including a single stone of 31 carats, this bodes well 
for the future economics of the project. 
 
 
"However, the diamond market continues to be challenging as exhibited by the low 
average price realised for the Kono diamond sales. The most recent sale in April 
was over 60% lower than the sale performed in September 2008, demonstrating the 
diamond market still has a long way to go in terms of its recovery. Although the 
diamond grades from Kono remain encouraging we realise that it is not 
sustainable to continue to trial mine at such prices.  Therefore, with our 
partners Petra Diamonds, we have reluctantly decided to enter a temporary care 
and maintenance of the Kono project. This situation will be continually 
monitored as the diamond market changes. We take a long term view on the Kono 
project and in an improved diamond market the trial mining will be resumed with 
the objective of determining the economics of the project." 
 
 
 
 
 ENDS 
 
 
 
 
Mano's Qualified Person responsible for reviewing the content of this release is 
Karl Smithson, Executive Director and CEO of Stellar Diamonds Limited. Mr. 
Smithson holds a BSc in Geology from Kingston University in the UK, a MBA from 
the Graduate School of Business, Cape Town and is a member of the South African 
Council for Natural Scientific Professions (as Professional Geologist). 
  For further information on Mano River Resources and its development 
programmes, you are invited to visit the Company's website at www.manoriver.com 
or contact one of the following: 
 
 
Stellar Diamonds Ltd. 
Karl Smithson, CEO Tel:+27 (0) 21 715 1990 
 
 
Mano River Resources Inc. 
Luis da Silva, President & CEOTel:+44 (0) 20 7299 4212 
 
 
Evolution Securities Limited 
Simon Edwards / Chris Sim / Neil ElliotTel:+44 (0) 20 7071 4300 
 
 
Pelham Public Relations 
Charles Vivian / James MacFarlaneTel:+44 (0) 20 7337 1500 
     Mob: +44 (0) 7797 297 903 
 
 
 
 
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term 
is defined in the policies of the TSX Venture Exchange) accepts responsibility 
for the adequacy or accuracy of this release. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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