|
Owing to the steep fall in price on the
international diamond market in recent months,
to levels below half of what they were in the
summer of 2008, and despite the Company’s
achieving its targeted throughput rates, Target
has decided to suspend its diamond mining activities
in Sierra Leone until further notice in order
to prevent further losses.
Running costs have been reduced accordingly and
the equipment is being secured and maintained
ready for restart as market conditions improve.
The Group has been carrying out mining operations
in Sandoh Chiefdom since late 2004, with a fully
equipped process plant and earthmoving equipment.
The production to date (February 2009) has achieved
an average sale price of US $563 per carat, showing
that the area yields gems of exceptional size
and quality.
Target has 4,262 acres of diamond / gold mining
leases in Kono District, as follows:
Joint Venture Agreements are in place with all
three of the above Chiefdoms, under which the
Chiefdoms are to receive 30% of the profits from
mining (changed to 11% of revenues in the case
of Sandoh).
|
