Obtala Resources (LON:OBT) announced today that they have recommenced mining at the Konoma alluvial diamond operation in Sierra Leone.
The Company recently acquired the Konoma prospect and have since carried out a review and maintenance program of the plant and the equipment used to move the earth. In addition, the Company have reportedly repaired and upgraded site infrastructure and access. Staff have also been appointed and security protocol has been improved.
AIM-listed Obtala Resources currently holds a portfolio of 36 licences covering a total area of over 7,039 km2 in Tanzania, comprised of exclusive or majority interests. These licences cover prospective ground for gold, nickel, uranium, copper, iron ore, and gemstones. The Company focuses largely on prospecting, sampling and drilling and continues to evaluate opportunities to acquire additional assets at the exploration, development and production stages in Tanzania and East Africa.
The areas of Bolima and Bakidu in Sierra Leone are being mined, and the Company has also hired two local prospecting teams to investigate further potential diamond deposits in the area.
Frank Scolaro, Chairman of Obtala, commented on the impact of the recommenced mining program on the Company’s revenue:
"Obtala's intentions are clear, that we will achieve our objective of being a revenue generating business before the end of Q2 this year. The DMS plant and the mining fleet are now operational, a distribution contract in place and we will start to recover stones shortly. The timing of this acquisition is fortuitous as the prices of rough stones continue to rise on international markets. The Board of Obtala remains confident that focused and precise low-cost mining of the alluvial diamond deposits in Sierra Leone will achieve the corporate objective of creating profitability and enhancing value of the overall portfolio of our projects."
