BHP Billiton to Fund Petra Diamonds Angolan Project

Diamond explorer Petra Diamonds says mining giant BHP Billiton has chosen to fund all kimberlite and alluvial exploration at Petra's Alto Cuilo project in northern Angola.

BHP Billiton will start earning a direct interest in the project when it has paid over $7.5 million, expected to take place later this year.

Petra said that 59 percent of the 73 holes drilled to date have intersected kimberlite, while a review of geological and geophysical data with BHP Billiton has identified additional targets and a 115 million ton deposit has been confirmed as diamondiferous

BHP Billiton has completed a valuation of the diamonds recovered from the kimberlite and alluvial sampling and based on a preliminary result obtained from 310 carats the diamonds recovered from the kimberlite samples averaged $295 per carat which is considerably more than Petra’s previous estimates of $200 per carat.