Nora Exploration Inc. said total reserves at its Kade project in Ghana amount to 295,637 carats of diamonds and 2,822 ounces of gold.

In a news release, Nora said it has completed an exploration report and feasibility study on a portion of the Kade concession, in which it holds a 90% stake.

It said results from the second phase of the exploration program establish proven reserves of 103,701 carats of diamonds at 0.25 carats a square meter and 665 ounces of gold at 49 milligrams a square meter, and probable reserves of 191,936 carats of diamonds at 0.37 carats a square meter and 2,157 ounces of gold at 0.13 grams a square meter. Reserves are fully diluted.

Nora said diamond distribution ranges from four to 12 stones a carat. Gem-quality diamonds account for 34.2% of the production, it noted.

The company said the exploration report was prepared by Mineral Prospecting and Development Co. of Ghana. It covers 3.5 square kilometers or 8.5% of the 41.5-square-kilometer Kade concession. The report is based on 1,250 samples taken from 350 exploration pits.

Exploration work to increase the proven reserve base and to precisely delineate projected reserves continues at Kade, Nora said.

Nora said Mineral Prospecting has also completed a feasibility study that values production start-up costs at C$3.5 million. In its first year, Nora is projecting gross revenues of C$2.5 million based on extraction and processing of 113,000 cubic meters of mineralized gravel. In its second year, Nora projects gross revenues of C$3.5 million based on the extraction and processing of 168,000 cubic meters of mineralized gravel. In its third year Nora projects gross revenues of $7.4 million based on the extraction and processing of 368,000 cubic meters of mineralized gravel.

The government of Ghana holds 10% of the concession.