Rio Tinto set to develop “world class diamond mine“ in India

Bhopal: Global major, Rio Tinto, has submitted mining lease applications for its Bunder diamond project in the Bundelkhand region of Madhya Pradesh, India, taking a major step in the development of what it describes could be the ''first significant world class diamond mine in India.''

Rio Tinto has announced the exploration target for diamond mineralisation at the Bunder project at 40-70 million tonnes, with a mineral grade of between 0.3 and 0.7 carats per tonne. It says that the targeted diamond grades are at least three times greater than the grade of the Panna mine, India's only other hard rock diamond mine.

The Bunder project is an original discovery made as part of a regional exploration reconnaissance in 2004, Tinto said. A prospecting license was executed in September 2006, which allowed exploration activities to continue, and an order of magnitude study was commenced to evaluate the economic viability of the eight diamondiferous lamproites.

The results of this study are expected by the end of the third quarter of 2008.

To date, work on the Bunder diamond project includes mapping, 48 drill-holes and five surface bulk samples. Drilling is continuing and further surface bulk sampling to support diamond valuation is underway.

Environmental approval for a 10 tonne per hour Dense Media Separation Plant is expected soon from the Madhya Pradesh government, which allows processing of bulk samples at the project site.