Southstone Minerals Ltd has announced that African Star Minerals (Pty) Ltd (ASM), the company’s 43% owned subsidiary, has entered into a contract mining and diamond recovery agreement with Oryx Mining (Pty) Ltd at the Oena Diamond Mine, South Africa.
Oryx, at its own cost and expense, will provide and maintain all the plant and equipment as required to perform the mining services.
The diamonds produced by Oryx will be sold via a designated tender facility in South Africa and 80% of the gross income of net diamond sales, less commission, will be paid to Oryx for the duration of the 36-month agreement. For any individual stones recovered with a gross selling price, less commission, of greater that ZAR 10 million Oryx will be paid 70% of the gross income.
Oryx specialises in the processing of alluvial diamond deposits in South Africa and the operation is currently targeting to operate 24 hours a day, 6 days a week with total headfeed capacity of 200 tph. Equipment and road building are ongoing, and it is expected that production will commence in May 2022.
Oena consists of an 8800 ha. mining right located along the Orange River in a well-established alluvial diamond-mining province that produces high quality and large sized diamonds.