VANCOUVER, British Columbia, April 19, 2022 (GLOBE NEWSWIRE) — Southstone Minerals Limited (“Southstone” or the “Company”) (TSX.V – SML) is pleased to announce that African Star Minerals (Pty) Ltd. (“ASM), the Company’s 43%-owned subsidiary, has entered into a diamond mining and recovery agreement (the “Agreement”) with Oryx Mining (Pty) Ltd (“Oryx”) at Oena Diamond Mine ( “Oena”), South Africa. Oryx, at its cost and expense, will provide and maintain all facilities and equipment required to perform the Mining Services.
Diamonds produced by Oryx will be sold through a designated tender facility in South Africa and 80% of gross revenue from net diamond sales, less commission, will be paid to Oryx over the term of the 36 month. For any individual stone recovered with a gross sale price, less commission, above ZAR 10,000,000, Oryx will receive 70% of the gross revenue.
Oryx specializes in processing alluvial diamond deposits in South Africa and the operation is currently aiming to operate 24 hours a day, 6 days a week with a total head feed capacity of 200 tonnes per hour. Construction of equipment and roads is underway and production is expected to begin in May 2022. Further details on the scale of operations, diamond recovery system and mining location will be provided in an upcoming publication. update. Oena consists of an 8,800 hectare mineral right located along the Orange River in a well-established alluvial diamond mining province that produces high quality, large diamonds.
Appointment of the CEO of ASM
Nadim Makki, who was appointed Chief Executive Officer of ASM on November 1, 2021, provides strategic leadership and vision for ASM and will liaise with Oryx. Mr. Makki’s remuneration is 5% of the net proceeds received by ASM, i.e. gross diamond sales less sales commissions and contractor’s share less ZAR 6,000,000 per year accrued and pro-rated per financial year .
Oena Diamond Mine, Republic of South Africa
Report on diamond sales from February 1 to April 19, 2022
Production at the Oena Diamond Mine, by Bluedust 7 Propriety Limited (“Bluedust”), for the period from February 1 to April 19, 2022, continued on site with the processing of run-of-mine material (“ ROM”). The operation was halted in April as the contractor completed the ongoing rehabilitation and demobilization of the equipment. Bluedust’s contract with will be officially terminated following the completion of demobilization of their equipment and an audit of any ongoing refits. Total diamond sales from February 1 to April 19, 2022, in accordance with the terms of the Bluedust contract, are summarized in the following table and there are no unsold diamonds remaining in stock.
|Total number of
|February 1 to April 19, 2022||89.94||55||1,242|
Since the Company’s acquisition of ASM, the Oena Diamond Mine has produced the following:
|Total number of
|Average USD/carat||Approximately. Total sales
|July 2015 to April 2022||7,967||3,958||2.01||1,612||$12,850,000|
The technical information contained in this press release has been approved by Terry L. Tucker, P.Geo., Executive Chairman of the Company and Qualified Person within the meaning of National Instrument 43-101 of the Canadian Securities Administrators.
ON BEHALF OF THE BOARD OF DIRECTORS OF SOUTHSTONE MINERALS LIMITED
Terry L. Tucker, geo.
Neither the 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.
Certain information in this press release contains “forward-looking statements” and “forward-looking information” under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include management’s assessment of future plans and operations and are based on internal expectations, estimates, projections, assumptions and beliefs. current, which may turn out to be incorrect. Some of the forward-looking statements can be identified by words such as “forecasts”, “estimates”, “expects”, “anticipates”, “believes”, “projects”, “plans”, “outlook”, “ability” and similar expressions. These statements are not guarantees of future performance and should not be unduly relied upon.
These forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company’s actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied. by these forward-looking statements. These risks and uncertainties include, but are not limited to, statements regarding mineral resource estimates; the completion of mineral resource estimates; expected future production, capital and operating costs; cash flows and life of mine; potential size of a mineralized zone; potential expansion of mineralization; potential types of mining operations; authorize deadlines; government regulation of exploration and mining operations; the risks that the presence of diamond deposits mentioned in the vicinity of the Company’s property will not be indicative of diamondiferous mineralization on the Company’s property, supply and demand, deliveries and the level and volatility of prices rough diamonds, the risks that actual revenues will be less than expected; the risks that target production for existing mining contracts will be lower than projected or expected; the risks that production will not start as planned due to a delay or inability to receive governmental approval of the Company’s acquisition or the timely completion of an NI43-101 report; technical issues; management’s inability to obtain sales or purchase contracts with third parties; currency and interest rate fluctuations; COVID-19[FEMININE;exchangeratefluctuationsandoverseasoperations;variouseventsthatcoulddisruptoperationsincludingworkstoppagesandextremeweatherconditions;andmanagement’sabilitytoanticipateandmanagetheaforementionedfactorsandrisks[FEMININE;lesfluctuationsdestauxdechangeetlesopérationsàl’étranger ;diversévénementsquipourraientperturberlesopérationsycomprislesarrêtsdetravailetlesconditionsmétéorologiquesextrêmes ;etlacapacitédeladirectionàanticiperetàgérerlesfacteursetrisquessusmentionnés
The forward-looking statements and information contained in this press release are based on certain assumptions regarding, among other things, future coal and diamond prices; future currencies and exchange rates; the Company’s ability to generate sufficient operating cash flow and access capital markets to meet its future obligations; coal consumption levels; and the Company’s ability to retain qualified personnel and equipment cost-effectively to meet its demand. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements contained in this press release, except as required by law. Statements regarding the Company’s ability to generate income do not guarantee that it will achieve these levels of income.