Oraco Resources, Inc. (ORAC) announced that it has shipped its first parcel of high quality rough diamonds from Sierra Leone. The parcel contains approximately 442.5 carats which includes gem quality, high color and clarity stones ranging in size from 3-10cts.. The Company plans to increase the potential return by cutting, finishing and polishing some of the higher gem quality diamonds, which would greatly increase the intrinsic value of these pieces.
Brad Rosen, Oraco’s President and CEO, stated, “We are very pleased to have made this shipment. We feel that our ability to procure a nice, high-grade parcel of rough before the end of the rainy season, when overall production will go into full swing, gives us a head start on the competition.”
Mr. Rosen further stated “We are very excited about commencing our operations when the rainy season ends, especially in our Nimini Hills holdings. The reports from the neighboring operations have given us high expectations of being able to recover significant quantities of diamonds in very short order. All indications point to the high probability that the kimberlite pipelines that neighboring operations have found to be so productive, should run right through the heart of our Nimini Hills holdings.”
Mr. Rosen pointed out that, as previously announced, both Stellar Diamonds, PLC, whose holdings lie 5.8 kilometers north and 1.2 kilometers east of Oraco’s, and Koidu Holdings, whose site is located 13.5 kilometers north and 2.7 kilometers east of Oraco’s, have released information that bodes well for the Company. Stellar’s recently completed final bulk sampling indicated the presence of kimberlite dykes which run from the north-east portion of Stellar’s holdings towards the south-west portion which, if they continue on that course, would run through Oraco’s holdings in Nimini Hills. Stellar stated that its final bulk sampling produced an in-situ grade of 90cpht.
In addition, Mr. Rosen also pointed out that Koidu Holdings 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 t/m to 1.5-million tons a month. 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 7.5 km. If these kimberlite dykes continue to run in their present direction for approximately 14 km further, they should cross into Oraco’s Nimini Hills site.
Chris Butchko, Oraco’s Executive Vice President and COO stated, “Our aggressive actions in this first shipment, as well as the anecdotal evidence, have us all excited about the growth of the Company, and the path that it is on. We anticipate that our geophysical reports, which we expect to be completed soon, will bolster our confidence that our operations should be recovering significant product very soon. Everything seems to be moving smoothly along the course that we have originally plotted, and this progression indicates that our strategy should lead the Company to success.”