Trustco Group Holdings Limited on Monday announced the results of a technical report for the Meya Diamond Mine Project in Sierra Leone. Trustco stated the technical report, dated 26 August 2024 with an effective date of 19 August 2024, was prepared at a preliminary economic assessment (PEA) level.
“The PEA indicates favourable economic potential with a post-tax Internal Rate of Return (IRR) of 65%, and a post-tax Net Present Value (NPV) of US$95.1 million at a 10% discount rate over a seven-year life of mine,” Trustco stated.
Quinton Z van Rooyen, Trustco’s deputy CEO, commented on the PEA results. “The positive outcome of this PEA marks a significant milestone for Trustco’s mining portfolio, and validates our strategic investment in Meya Mining. With an impressive IRR and substantial NPV, the Meya Mine project not only demonstrates its robust economic potential, but also underscores our commitment to creating long-term value for our investors. We are particularly excited about the opportunities for resource expansion, given that this PEA covers only a fraction of our licensed area”.
The statement continued that geological studies revealed the presence of high-quality diamonds within the Meya River kimberlite dyke system, including a significant proportion of valuable Type IIa diamonds.
“The Meya River domain provides a solid cornerstone from which the mine will continue to expand. The mine is expected to reach steady-state commercial production during the forthcoming financial year,” Trustco stated.
“While the mining mandate encompasses building a diversified mining portfolio, the primary focus remains on unlocking the full economic potential of its diamond assets, as Meya Mining’s mining license area has yielded five of the world’s largest stones recovered. Trustco holds a 19.5% equity stake in Meya Mining and a loan receivable from Meya of US$46 million. The combined value of Trustco’s investment in Meya Mining is reflected in Trustco’s financial statements at approximately US$110 million,” the Trustco statement added.