[et_pb_section bb_built=”1″][et_pb_row][et_pb_column type=”4_4″][et_pb_text _builder_version=”3.0.64″ background_layout=”light” text_orientation=”left” border_style=”solid”]

A unique and compelling opportunity to acquire a meaningful equity interest in this significant Diamond Project in South Africa

A Rare Undeveloped Diamondiferous Pipe

Companies spend decades in search of diamond hosting Kimberlite pipes. This advanced exploration asset comprises an already defined and partially tested diamondiferous kimberlite pipe, as yet undeveloped for various corporate reasons.

The opportunity to realise value from the development of this asset is remarkable.

Located on 12.2 hectares, the deposit pipe has been extensively bulk tested in the 1970’s and 1980’s with large diameter auger holes, rotary percussion drilling, diamond drilling and trenching.

The pipe has demonstrated the ability to deliver large carat stones from 5 to 220+carats with a broad micro diamond distribution within the pipe. Gem quality stones have been recovered in bulk sampling and trenching, and diamond chips recovered from rotary percussion drilling.

Gem Quality Stones

The average diamond size of diamonds is estimated to be 0.77 carats from previous work. Snowden established that this represents an exceptionally high average stone size for a pipe. The stone size estimate does not include the 223.9 carat stone recovered during the 1979 – 82 bulk sampling program.

Drilling results yielded a particularly large number of 5+ carat diamonds during this program, including three in the 15-20 carat range. A large number of the stones that were classified as “fragments” is suggestive that large diamonds (>20 carats) will be a feature of this pipe.

Descriptions of the stone quality by experts in diamond valuation include:

• Colour: 70% to 80% of stones were judged by experts to display “good colour” i.e. white or top white with some yellowish.
• Shape: Stones tend to be fragmentary with rounded and polished surfaces.
• Purity: Stones are described as clear with good colour and contain relatively few macroscopic inclusions.
• Grade: The diamond grade within the pipe could increase with depth, e.g. the grade in the Premier pipe at 400 m depth below the surface was 28 carats per 100t, but increased to 72 carats per 100t at 600m depth.
• Gem to Boart Ratio: highly favourable ratio of gem diamond to boart is 60:40%.

 Demonstrated Potential to Produce Large Gem Quality Stones

This is the fourth largest Kimberlite pipe discovered in South Africa to date. When it was discovered and then professionally evaluated initially between 1975 and 1982, the deposit pipe was considered too low grade at 1.77cpht to be economically developed. However, the economics depends not just on the grade of the bulk economic material but on the prevalence, occurrence, size and quality of the gem quality diamonds contained therein.

This pipe has demonstrated an ability to produce large carat, high quality stones in addition to the background distribution of smaller stones.

Exceptional Exploration Upside

Kimberlite pipes rarely exist as single intrusive events. More commonly, they occur in clusters. Individual pipes may be the result of multiphase events, with each phase having different diamondiferous characteristics in terms of tonnes / grade, presence or absence of diamonds, colour, size and quality. Individual pipes within a cluster may also exhibit variability.

It is probable that other Kimberlite pipes will be identified on Client’s deposit with further exploration, therefore. Indeed geophysical exploration has already identified several potential targets.

 Further key indicators

• It is anticipated that the valuation of the resource will be substantially enhanced after the results of a cumulative Size Frequency Distribution (“SFD”) become available. The Inferred Diamond Resource determined may exceed the current EV of AU$22.6m valuation by two highly respected Geologists and Consultants.
• UMG recently appointed a Competent Person who has many years of diamond exploration and operational experience in country. A site visit and analysis of tailings and old stockpile from previous workings confirm the presence of zircon and other precious stones – a major indicator of macro and micro gem quality diamonds. (Previous technical reports in confirmation are available).
• The project is favourably located for infrastructure.

INVESTMENT PROPOSAL

The project owners now seek further development funds to;

• Plan and put into production a recovery plant based on TOMRA technology for the processing of un-oxidised kimberlite (blue ground) from 30m and deeper on an identified high grade portion of the pipe.
• Thoroughly investigate the further kimberlite anomalies present adjacent to the project area and within the project mining lease.

Funds required to:

• To finalise all regulatory requirements (very advanced).
• Obtain diamond core drilling program results.
• Appoint a consulting diamond geologist to re-log the diamond core drilling results to capture missed kimberlite high grade intrusions within the project pipe.

Funding Proposition:

• UMG seeks interest parties to participate in the project. This exclusive funding round is for $5.5m in return for equity. It can be developed in tranches in agreement with the project owners. Equity details can be discussed and agreed under NDA.

Expressions of Interest are required by 31st August 2017. Thereafter interested parties will make pledges within 14 days of the closing date of the EOI process.

A comprehensive data room is available subject to signing an NDA. Please contact garry.wildman@umgrp.com or peter.harrison@umgrp.com for an initial confidential discussion.

[/et_pb_text][et_pb_signup admin_label=”Email Optin for Investment Opportunities Updates to Investors” provider=”mailchimp” mailchimp_list=”6a63187c08″ aweber_list=”none” title=”Investment Opportunities Updates” button_text=”Sign up for Investment Opportunities Updates” use_background_color=”on” background_color=”#7EBEC5″ background_layout=”dark” text_orientation=”left” use_focus_border_color=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_button=”off” button_letter_spacing=”0″ button_use_icon=”default” button_icon_placement=”right” button_on_hover=”on” button_letter_spacing_hover=”0″ saved_tabs=”all”]

Sign up to receive our Investment Opportunities Updates for Investors

[/et_pb_signup][/et_pb_column][/et_pb_row][/et_pb_section]