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Frontier Diamonds admitted to the ASX following $4 million raising

The company's focus is on two operating diamond mines in South Africa.
a diamond
Frontier’s shares will commence trading on the ASX from 5 January 2018.

Frontier Diamonds (ASX:FDX) has been admitted to the ASX today after raising circa $4 million from an initial public offer.

The company has an agreement to acquire a 74% interest in a group of companies operating diamond mines in the globally renowned Kimberley region of South Africa.

Frontier’s focus is on two operating diamond mines in South Africa – Star and Sedibeng diamond mines.

The company will also investigate potential diamond project acquisitions across the broader Kimberley region.

Frontier’s shares will commence trading on the ASX from 5 January 2018.

Star Diamond Mine

The Star Diamond Mine has been in operation for more than 60 years and is currently operating at depths of between 580 and 620 metres below the surface.

Presently, ore at the Star Mine is hand mucked, which is labour and time intensive.

It is planned to change this to a water jetting method, which would reduce the cost and time to recover material and increase product assurance on diamond handling of large stones.

Through the water jetting process, Frontier believes that it is possible to increase the recovered grade from 40 cpht (carats per hundred tonnes) to 55 cpht.

Sedibeng Diamond Mine

The Sedibeng Diamond Mine has been in operation for more than 60 years and all mine infrastructure already exists.

The mining licenses at Sedibeng straddle a single continuous ore body called the “Bobbejaan” fissure.

Recent investigations suggest a strong possibility that the fissure may continue towards the southwest, and that a second fissure might have developed parallel to the main fissure at Sedibeng.

Frontier is currently undertaking underground and surface drilling to test for extensions of the existing fissure and to delineate additional resources.

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