MINING IN AFRICA SPECIAL — Radisson secures rights in CAR

A subsidiary of Radisson Mining Resources (ME) has gained the right to prospect, extract and sell minerals such as diamonds and gold on a 110,000-acre property in the Central African Republic (CAR).

The rights were granted through a decree signed by the country’s president. Radisson holds an 80% interest in its African subsidiary, with private investors from CAR holding the remaining 20% (in compliance with regulations in force in the country).

Radisson intends to invest $3.5 million in the first year. This amount includes the purchase of heavy equipment and a wash plant with a capacity of at least 20 cubic metres per hour.

The company expects this program will lead to a production decision for the property’s diamond-bearing placers.

It is estimated that a single wash plant could produce at least 20,000 carats per year (at full production) and generate about $4 million in revenue. (This estimate is based on the average rough diamond value of US$150 per carat, which is the average export value of rough stones in CAR.)

CAR, part of the former French Equatorial Africa, has been independent since 1960.