[miningmx.com] — Diamond miner Trans Hex Group said on Thursday that negotiations for the conversion of its prospecting contract for the Luana Concession in Angola to a mining contract have been successfully concluded and that the mining contract was signed on Wednesday 12 May.
Through the successful prospecting activities and the approved feasibility study, Trans Hex has earned its 33% equity interest in the mining company. The mining contract allows for Trans Hex to appoint the General Manager, Financial Manager and Operations Manager.
Pilot production will continue with equipment already on site, and the partners will in due course decide how the mine will be developed. Sale of Luana product will commence forthwith.
The Luana Concession is located 80km North East of the town of Lucapa in the Angolan province of Luande Norte. The 724.5km2 concession includes a portion of the Luana River to the south of its confluence with the Chuimbe River. It is adjacent to the Luarica concession in which Trans Hex has a 35% interest.
The Luarica and Fucauma operations remain mothballed with minimal care and maintenance costs being incurred, it said.