Australia's POZ Minerals Sets Sights on Ellendale Diamond Mine, Yellow Stones

Mining and Exploration
06/09/2018 14:32

POZ Minerals Ltd., a phosphate producer that holds a 100% interest in the Blina Diamond Project and also explores for phosphate and gold properties, annouced it will place a bid for the Ellendale mine after the state government’s call for investors in the asset last week. The Ellendale Project was mined from 2002 to 2015 and previously produced about half of the world's highly valued fancy yellow diamonds. The mine included US jeweller Tiffany & Co as a major client. POZ already own the Blina Diamond Project Kimberley, Western Australia, whose alluvial sites are surround and are derived from the Ellendale 9 diamond pipe. The company believes the joining of these two diamond projects under common ownership would create significant commercial advantages and synergies, particularly in the market for yellow diamonds.

POZ has already negotiated a Mining Agreement with the local Bunuba Traditional Owners over the adjacent Blina Project, which has resulted in granted mining leases, and believes this makes the company very well placed to do the same for the Ellendale Diamond Mine. The company says that, "The acquisition of the Ellendale Diamond Mine lease would provide an excellent commercial opportunity for POZ to consolidate control over the entire Ellendale and Blina diamond fields. This would result in economies of scale and efficiencies in exploration and development and would be a major step towards building a branded diamond mining company producing the Fancy Yellows for which Blina and Ellendale are justifiably famous."

POZ Directors Jim Richards and Grant Mooney will be joining government DMIRS officers and other interested parties for a field visit of the Ellendale site on 18/19 September to assess the potential of the area prior to a POZ application under the EOI process. The State Government is expected to select a company from the Expressions of Interest submissions early in 2019.