Mexivada Signs MOU for Diamond Mining in Sierra Leone
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09.12.08, 11:14
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Mining
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Mexivada has received a Memorandum of Understanding (MOU) dated November 14, 2008 from the Gbense Chiefdom of the Kono diamond mining district in Sierra Leone to facilitate start up of new artisanal diamond mining operations in Sierra Leone through its subsidiary, Mexivada Gold and Diamond Mining Company (MGD). According to the agreement, MGD will conduct artisanal alluvial mining of diamonds at an initial 1-acre site near Yaradu in the heart of Koidu diamond mining area. A private American group which mines the adjoining, downstream concession is reported to have yielded hundreds of diamonds along a short stretch of the drainage.
The agreement stipulates that Mexivada and the Gbense Chiefdom will share net profits from the venture on a basis of 70% to MGD and 30% to the Gbense Chiefdom. Mexivada works at the Kono diamond district together with the people of the Chiefdoms and its local partner Pink Diamond Exploration Company Ltd (Pinks).
Mexivada reported that the company and Pinks will share profits on the initial venture on a 60% (to MGD) and 40% (to Pinks) basis. Mexivada anticipates that the initial diamond mining venture will cost approximately $25,000 to conduct, before sale of any diamonds recovered.
Mexivada reports that its business plan model is to conduct low-cost, potentially high-yield diamond mining operations in areas that have yielded large gem diamonds, such as the 968 carat "Star of Sierra Leone." Vice President Sam Sumana, who previously managed diamond exploration and production operations in the region for the Gbense Chiefdom, was optimistic that the area has potential to be productive.
Sierra Leone has produced more than 100 million carats of alluvial diamonds.
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By: Rachel Lieberman, Israel Diamond Industry Portal
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