The contract for a Definitive Feasibility Study (DFS) for the Merlin diamond project – fully owned by North Australian Diamonds – has been awarded to Consulmet Pty Ltd, Jewelry News reports.

Consulmet has designed, commissioned, and operated diamond processing plants in several African nations, as well as in Australia.

Pre-feasibility studies of the Merlin diamond project were completed in 2010 and yielded 10,600 carats of rough diamonds, nearly a quarter of which exceeded 1 carat. Over 75% of the 1-carat+ diamonds recovered in the pre-feasibility study were assessed as "near-gem" or gem quality.

North Australian Diamonds recently reported that due to increasing global diamond prices, the value of its run of mine (ROM) rough diamond parcel has increased from $180-$200/carat to $330/carat.

Consulmet is expected to have an interim feasibility study prepared by Q4 2011 and a final report ready by Q1 2012.