Phosphate Australia (ASX:POZ) has acquired a project in a highly endowed diamond belt of Western Australia adjacent to the world’s leading supplier of prized fancy yellow diamonds.
Phosphate Australia has confirmed its acquisition of the Blina diamond project in the Ellendale region of WA, where the recently closed Ellendale mine supplied an estimated 50% of global yellow diamond supply.
The geological structures underpinning Ellendale’s endowment are considered likely to represent a similar diamond source at Blina.
Blina’s most prospective area so far has delivered historic bulk sampling of 40,613 cubic metres recovering 1,432 carats of diamonds at a grade of 3.53 carats per hundred cubic metres and an average stone size of 0.42 carats. This included fancy yellow diamonds for which the Kimberley region's Ellendale Field is renowned.
Some 40 kilometres of strike containing diamondiferous alluvial gravels in this area is considered suitable for further exploratory targeting.
To assist in this exploration effort, Phosphate Australia purchased a parcel of diamonds from the administrators of Ellendale operator Kimberley Diamond Company. Also, the company has access to a considerable amount of historic exploration data previously carried out on its permits.
The potential for finding high-value fancy yellow diamonds is very high at a time when global supply is likely to be pinched by the shuttering of the Ellendale operation.
The project is 100% owned and carries no private royalties.
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