Meya Mining’s 391-Carat Diamond Recovery Marks Mega Clippir Discovery

Trustco Group Holdings Ltd (“Trustco”) has announced the results of a recent examination of the 391.47-carat diamond recovered by Meya Mining (“Meya”) in Sierra Leone. Trustco holds a 19.5% interest in Meya, which operates under a 25-year exclusive diamond mining license in the Kono District.

The 391.47-carat diamond was part of a 515-carat rough diamond recovered in the Meya River kimberlite domain on Tuesday, 20 August 2024, during the first of 16 domains targeted by Meya. Along with two smaller fragments weighing 105.43 carats and 18.11 carats, this marks the second significant find from the region, confirming its potential as a source of high-value diamonds.

A detailed examination conducted by Dr. Evan M. Smith of the Gemological Institute of America (GIA) confirmed the diamond as Type IIa, indicating high purity due to the absence of nitrogen. Further analysis revealed that the diamond is part of the CLIPPIR variety (Cullinan-like, large, inclusion poor, pure, irregular, resorbed), similar to some of the world’s most valuable diamonds.

According to the examination report, the diamond contains metallic inclusions, primarily iron-rich metals, suggesting it formed deep in the Earth, between 360 and 750 kilometers below the surface. Despite these inclusions, large parts of the stone remain clear, making it a significant geological find. The discovery of this CLIPPIR diamond at the Meya mine confirms that the area contains large Type IIa diamonds.

Quinton Z van Rooyen, Deputy CEO of Trustco, stated: “The recovery of this CLIPPIR diamond sheds light on Meya’s extraordinary geological landscape. As the diamond world contemplates the eventuality of a 5000-carat stone, our recent find indicates that Meya’s unique geology positions us well for potentially historic discoveries in the future.”

On June 5, 2024, shareholders were informed that Z Star Mineral Consultants, an independent consulting firm, estimated the in situ resource of the Meya River Domain at USD 763 million. This domain accounts for less than 3% of the overall Meya Mining project potential resources (available here: https://tinyurl.com/2twpv78v).

Additionally, on September 2, 2024, shareholders were advised that the NI 43-101 Technical Report for the Meya Diamond Mine Project was published, offering a Preliminary Economic Assessment (PEA). The PEA showed promising economic potential with a post-tax Internal Rate of Return (IRR) of 65% and a post-tax Net Present Value (NPV) of USD 95.1 million at a 10% discount rate over a projected 7-year mine life (available here: https://tinyurl.com/yvy8p6xs).

These reports also noted that the estimated value of diamonds recovered from bulk samples and run-of-mine production from the Meya River domain, sold at public auctions, is USD 380 per carat. This estimation excludes the sale of the 476ct Meya Prosperity diamond (USD 34,664 per carat) and several subsequent large stones due to their distinct nature. The valuation matrix currently used to assess Trustco’s 19.5% stake in Meya Mining, at USD 110 million, may be adjusted in the future to account for these exceptional finds, potentially affecting future valuations.

Meya Mining is now focused on improving its recovery process to prevent breakages of large diamonds in the future. The company is collaborating with its engineering and processing partners to upgrade the plant and enhance its capacity to recover large diamonds intact. This discovery not only strengthens Trustco’s mining portfolio but also highlights Sierra Leone’s position as a key player in the global diamond market.