Commencement of Contract Mining Operations at Oena Diamond MINE
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Southstone Minerals Limited
2751 Graham Street
Victoria, British Columbia, V8T 3Z1
TSX Venture : SML
www.southstoneminerals.com
COMMENCEMENT OF CONTRACT MINING OPERATIONS AT OENA DIAMOND MINE
VANCOUVER, BRITISH COLUMBIA — 13 JUNE 2022 — Southstone Mineral s Limited (“Southstone” or the
“Company”) ( T S X . V – S M L ) i s p l e a s e d t o a n n o u n c e t h a t O r y x M i n i n g ( P t y ) L t d (“Oryx”) has commenced
diamond mining operations at Oena Diamond Mine (“Oena”), South Africa.
Oena will be operated 23 hours a day, 6 days a week with total head feed capacity of 200 tonnes per hour to
a desanding screen which feeds to an 18‐foot pan plant. Concent rate produced from the pan plant will be
transferred securely to a high security processing facility where diamonds will be recovered using BVX
technology. Diamonds will be sold monthly at a designated tende r facility (see news release dated 19 April
2022 for detailed terms).
Oena consists of an 8,800‐hectare mining right located along th e Orange River (see Figure 1). Mining
op erat ion s wi ll c om men ce at Bl okwe rf Se ct ion wit h s ub se qu ent expansion to the Sandberg Section. Since
November 2018, Southstone has bulk sampled an estimated 638,690 tonnes from Sandberg recovering 2,681
c a r a t s ( c t s ) ( 1 , 1 5 5 d i a m o n d s ) w i t h a n a v e r a g e s t o n e s i z e o f 2 . 32 cts and has bulk sampled an estimated
202,760 tonnes from Blokwerf recovering 550 cts (307 diamonds) with an average stone size of 1.79 cts.
I m p o r t a n t l y , S a n d b e r g m i n e d t o n n e s t o d a t e c o m p r i s e o n l y 3 0 % o f t h e t o t a l t o n n e s m i n e d a t O e n a b y
Southstone since 2015, yet Sandberg has produced more than 50% of the diamonds over 10 ct and valued
>USD $5,000 per ct. Table 1 lists some of the exceptional diamo n d s t h a t h a v e b e e n r ec o v e r e d f ro m b ot h
Sandberg and Blokwerf Sections over 10 ct and Table 3 provides images of a select number of diamonds. The
average run of mine diamond sale price to from July 2015 to April 2022 is USD $1,612 per ct (see Table 2).
Figure 1 – Oena Mining License
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Diamond See Photo Section Sales Weight (ct) USD per ct Total USD
1 below Sandberg 44.250 $5'492 $243'000
2 below Sandberg 37.030 $5'103 $188'962
3 below Sandberg 35.000 $15'286 $535'000
4 below Sandberg 32.218 $1'809 $58'289
5 below Sandberg 26.410 $12'680 $334'900
6 below Sandberg 26.340 $5'884 $155'000
7 Sandberg 22.020 $7'720 $170'000
8 below Sandberg 20.112 $4'031 $81'084
9 Sandberg 19.420 $2'034 $39'500
10 Sandberg 18.730 $8'270 $154'889
11 below Blokwerf 17.550 $3'971 $69'499
12 Sandberg 16.922 $3'137 $53'100
13 Sandberg 15.250 $5'016 $76'499
14 Sandberg 14.800 $2'910 $42'900
15 Sandberg 13.200 $2'121 $27'999
16 Sandberg 10.651 $5'330 $56'780
17 below Sandberg 10.510 $8'712 $91'560
Table 1 – Sandberg and Blokwerf selection of diamonds recovered over 10 cts
Sandberg represents a target of 4.50 million (M) to 5.75M cubic meters (approximately 11M tonnes) and
Blokwerf represents a target of 6.25M to 7.25M cubic meters (approximately 18M tonnes) of basal and
suspended gravel has been identified for continued exploration and bulk sampling. (see news release dated
1 December 2014).
Total
ct
sold
Total Number
of Diamonds
Average
Diamond Size
ct
Average
USD per ct
Approx.
Total Sales
(USD)
July 2015 to April 2022 7,967 3,958 2.01 1,612 $12,850,000
Table 2 – Oena Diamond Mine production from July 2015 to April 2022
Diamond Size
Date
Value
Photo
1 44.25 carat ‐ $5,492 per carat ($243,000)
Sandberg
20 March 2020
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2 37.03 carat ‐ $5,103 per carat ($188,962)
Sandberg
24 February 2020
3 35.00 carat ‐ $15,286 per carat ($535,000)
Sandberg
28 November 2019
4 and 8 Sandberg – parcel of 16 stones
32.218 carat ‐ $1,807 per carat ($58,289)
20.112 carat ‐ $4,031 per carat ($81,084)
4.75 carat 2.2 carat
5.15 Carat 2.0 carat
4.0 Carat 2.05 carat
3.4 carat 1.25 Carat
4.0 carat 0.95 carat
3.15 carat 1.0 carat
2.8 carat 0.75 carat
23 November 2020
5 26.41 carat ‐$12,680 per carat ($334,900)
Sandberg – parcel of 3 stones
3.85 carat
3.25 carat
24 January 2019
6 26.34 carat ‐ $5,884 per carat ($155,000)
Sandberg
18 September 2020
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11 17.55 carat‐ $3,97 1 per carat ($69,499)
Blokwerf
22 February 2019
17 10.51 carat ‐$8,71 2 per carat ($91,560)
Sandberg
23 January 2021
Table 3 – Oena Diamond Mine diamond photos of select diamonds from Sandberg and Blokwerf production
The technical disclosure in this news release has been approved by Terry L. Tucker, P.Geo., Executive Chairman
of the Company and a Qualified Person as defined by National In strument 43‐101 of the Canadian Securities
Administrators.
ON BEHALF OF THE BOARD OF DIRECTORS OF SOUTHSTONE MINERALS LIMITED
Terry L. Tucker, P.Geo.
Executive Chairman
Neither TSX Venture Exchange nor its Regulation Services Provid er (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward‐Looking Statement
Certain information set forth in this news release contains “fo rward‐looking statements” and “forward‐looking
information” under applicable securities laws. Except for statements of historical fact, certain information contained
herein constitutes forward‐looking statements, which include ma nagement’s assessment of future plans and operations
and are based on current internal expectations, estimates, proj ections, assumptions and beliefs, which may prove to be
incorrect. Some of the forward‐looking statements may be identified by words such as “forecasts”, estimates”, “expects”
“anticipates”, “believes”, “projects”, “plans”, “outlook”, “capacity” and similar expressions. These statements are not
guarantees of future performance and undue reliance should not be placed on them.
Such forward‐looking statements necessarily involve known and u nknown risks and uncertainties, which may cause the
Company’s actual performance and financial results in future pe riods to differ materially from any projections of future
performance or results expressed or implied by such forward‐loo king statements. These risks and uncertainties include,
but are not limited to statements with respect to the estimation of mineral resources; the realization of mineral resource
estimates; anticipated future production, capital and operating c o s t s ; c a s h f l o w s a n d m i n e l i f e ; p o t e n t i a l s i z e o f a
mineralized zone; potential expansion of mineralization; potential types of mining operations; permitting timelines;
government regulation of exploration and mining operations; risks that the presence of diamond deposits mentioned
nearby the Company’s property are not indicative of the diamond mineralization on the Company’s property, the supply
and demand for, deliveries of a nd the level and volatility of p rices of rough diamonds, risks that the actual revenues will
be less than projected; risks that the target production for the existing mining contracts will be less than projected or
expected; risks that production will not commence as projected due to delay or inability to receive governmental approval
of the Company’s acquisition or the timely completion of an NI43‐101 report; technical problems; inability of management
to secure sales or third party purchase contracts; currency and interest rate fluctuations; COVID‐19; foreign exchange
fluctuations and foreign operations; various events which could disrupt operations, including labor stoppages and severe
weather conditions; and management’s ability to anticipate and manage the foregoing factors and risks.
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The forward‐looking statements and information contained in this news release are based on certain assumptions
regarding, among other things, future prices for coal and diamo nds; future currency and exchange rates; the Company’s
ability to generate sufficient cash flow from operations and ac cess capital markets to meet its future obligations; coal
consumption levels; and the Company’s ability to retain qualifi ed staff and equipment in a cost‐efficient manner to meet
its demand. There can be no assurance that forward‐looking stat ements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements. The reader is cautioned not to place undue
reliance on forward‐looking statements. The Company does not un dertake to update any of the forward‐looking
statements contained in this news release unless required by law. The statements as to the Company’s capacity to achieve
revenue are no assurance that it will achieve these levels of revenue.