ROCHESTER, N.Y.--(BUSINESS WIRE)--Two companies next to Oraco Resources, Inc.’s (OTCQB: ORAC) 50 square kilometer concessions in Nimini Hills, have reported significant findings which demonstrate a tremendous potential in Nimini Hills.
One of these companies, Stellar Diamonds, PLC, announced that it had completed the final bulk sampling of diamond grades and values from its Lion-5 kimberlite dyke at their site in the Kono District in eastern Sierra Leone. Stellar’s site is approximately 3.6 miles north and ¾ of a mile east of Oraco’s Nimini Hills holdings. Stellar reported that its final bulk sampling produced an in-situ (In place or position; undisturbed) grade of 90-cpht. The intriguing aspect of this report is that its kimberlite dykes run from the north-east portion of Stellar’s holdings towards the south-west portion. It is anticipated that the kimberlite dykes will continue to run in the same direction through Oraco’s holdings in Nimini Hills. Stellar’s Chief Executive, Karl Smithson, commented that “the final results from the first phase of evaluation of the Lion-5 kimberlite prove that the body is of both high grade and high diamond quality. Based on these results, we are planning a resource definition drilling campaign over Lion-5, as well as the nearby Pol-K kimberlite, in order to establish a significant maiden resource for the Kono project.”
Additional highlights from Stellar’s samplings include:
- 346 dry tons of kimberlite processed to yield 312 carats for in-situ grade of 90-cpht
- Diamond value modeled at $220 per carat indicating in-situ kimberlite value of $198 per ton
- Diamonds of 4.45ct, 3.70ct 3.22ct, 3.07ct, 3.0ct recovered from bulk sampling
- Lion-5 kimberlite mapped over 1,990m with an average width of 1.5m at the bulk sample site
- Resource definition drilling program planned
The second company, Koidu Holdings (owned by BSG Resources LTD), who has employed over 1,500 workers, announced that the returns on their operations warranted the expansion of their plant from one that processed 50 tph to one that will process 130 tph. Therefore, the total mining rate will be ramped up from 300, 000 tons a month to 1.5-million tons a month. Koidu Holdings’ site is located 8.38 miles north and 1.7 miles east of Oraco’s Nimini Hills holdings. Consistent with the results of Stellar’s sampling, Koidu’s kimberlite dykes run from the northeast corner of their site on a linear path southwesterly for approximately 4.7 miles. If these kimberlite dykes continue to run in their present direction for approximately 8.7 miles further, they should enter Oraco’s Nimini Hills site.
Chris Butchko, Oraco’s Executive Vice President and COO stated, “We are pleased to see such an abundance of gem quality diamonds in these findings. As we anxiously await the results of our own geological studies that will be completed by SRK shortly, we anticipate, based on the location and direction of the kimberlite dykes, as well as the close proximity of these two companies, that we will have very similar results and significant success with Nimini Hills.”
Brad Rosen, Oraco’s President and CEO, added, “We are thrilled about our mining project in Sierra Leone; it has the potential to be very successful to our company and for our shareholders. These findings confirm our own preliminary studies and we look forward to releasing more data shortly.”
About Oraco:
Oraco Resources, Inc. (ORAC.OB) is a mineral exploration stage and development company engaged principally in the exploration for and development of diamond deposits. Oraco as a result of the acquisition of ORI and Jyork is looking to rapidly develop producing and exploration diamond properties into a portfolio of high value assets located within Africa. To date, Oraco has secured a series of alluvial and eluvial assets which its exploration and development teams are working on to progress with operations in Sierra Leone. Oraco’s broad portfolio that arise from Charles Huggins’ extensive knowledge of the geology and history of diamond production and exportation in Sierra Leone as well as his long-term presence and established business relationships there. For more information, visit Oraco’s website at www.oracoresourcesinc.com.
Forward Looking Statements:
Certain statements, included in this release such as: “significant findings which demonstrate a tremendous potential in Nimini Hills” and “It is anticipated that the kimberlite dykes will continue to run in the same direction through Oraco’s holdings in Nimini Hills” other than purely historical information, including: estimates, projections, statements relating to our business plans, objectives, expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements. Forward-looking statements are identified by the words "believes," "project," "expects," "anticipates," "estimates," "intends," "strategy," "plan," "may," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are based on current expectations and assumptions, and are subject to risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a materially adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and changes in generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Further information concerning our business, including additional factors that could materially affect our financial results, can be found at our website www.oracoresourcesinc.com, and in our filings with the SEC.