Target Resources is now placing diamond mining in Sierra Leone on hold and is, instead, turning their focus to the mining of gold, according to investors.  Since rough diamond prices have plummeted to half of what they were at the same time in 2008, Target--which holds 4,262 acres of diamond and gold leases in Sierra Leone--is looking to gold as an alternate source of income. 

The mining company has an exclusive agreement with Tiffany & Co., under which the luxury diamond jewelry retailer has the right of first refusal on diamond output.  In February, Target received a $1 million loan from Tiffany & Co., whic, added to the outstanding debt owed to the company and its subsidiaries, comes to $9 million. 

According to a Target Resources spokesperson, "As an alternative source of income, target intends shortly to commence alluvial gold production along the Teye River and its tributary streams."  The area licensed to them includes auriferous active streams, alluvial terraces, and greenstones of the Kambui Supergroup.  The Kambui Supergroup is the largest greenstone area in Sierra Leone, and is highly prospective for hard rock gold mineralization.  Target also plans to recover any gold that was discharged during the diamond mining process in Kono.

Although diamond prices have dropped significantly, gold prices seem to be holding steady, if not actually climbing.  This move may allow Target Resources to recoup losses from the mining of diamonds.

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