BlueRock Diamonds PLC Update & Sale of Two Large Diamonds (9144U)
August 04 2022 - 3:08AM
UK Regulatory
TIDMBRD
RNS Number : 9144U
BlueRock Diamonds PLC
04 August 2022
BlueRock Diamonds PLC / AIM: BRD / Sector: Natural Resources
4 August 2022
BlueRock Diamonds PLC ('BlueRock' or the 'Company')
Operational and Corporate Update & Sale of Two Large
Diamonds
BlueRock Diamonds PLC, the AIM listed diamond producer, which
owns and operates the Kareevlei Diamond Mine ('Kareevlei') in the
Kimberley region of South Africa, announces an update and the sale
of two large stones in the July 2022 tender for a total of
US121,716.
Overview
-- Weather improvements support a marked increase in production,
with just under 70,000 tonnes produced in July (June: 57,000
tonnes)
-- Overall development mined tonnes improving with drier
conditions; whilst it remains behind target year to date, impacting
on both the quality of ore and the grade, it is anticipated that
the grade will be back to 4cpht in September 2022
-- High level operational review by Teichmann Group and ex-De
Beers team identified opportunities for improvement, including
minimising weather impacts, which are now being assessed
-- Improved access to better quality kimberlite is resulting in
an increase in the recovery of larger stones, with two large
diamonds sold for a total of USD121,716 in the July tender
-- Teichmann Financing update
o Circular in relation to previously announced Teichmann
financing expected to be published shortly
o issue of the initial SLN expected to complete shortly subject
to finalisation of outstanding conditions - Teichmann Group have
been providing working capital to Kareevlei ahead of completion
Mike Houston, Executive Chairman said, " I am pleased to report
that with drier weather conditions, the new plant is showing a
marked improvement with July production just under 70,000 tonnes,
up from 48,000 tonnes and 57,000 tonnes in May and June
respectively. The overall development mining tonnes, although
improving, remains behind target year to date and this is impacting
on both the quality of ore and the grade. Nonetheless, we are
seeing a steady upward movement in the grade, and we are confident
that the grade will be back to approximately 4cpht from September
2022. As stated in our Q2 production update, the Teichmann Group,
with the support of an ex-De Beers technical and commercial team
had carried out a high-level review of the operations and we are
now in receipt of their recommendations. There appears to be a
number of good opportunities to both improve and de-risk the
Kareevlei operation, particularly in poorer weather conditions, and
these are being reviewed with additional investigatory work being
completed. I look forward to reporting on the outcomes in the near
future.
"In tandem with increased production, we are delighted to
announce the sale of two large diamonds for a total of USD121,716
in the July 2022 tender and importantly averaging over $9,000 per
carat. With the improving access to better quality kimberlite, we
are also seeing an increase in the recovery of larger stones. While
the market has stabilised since the exceptionally strong first
quarter, high quality rough diamonds remain in demand; Kareevlei's
diamonds tick this box and accordingly, our average price remained
robust at USD607 per carat for the year to date."
Figure 1: Kareevlei Mine Production
Table 1: Large stones recovered in 2022
Date sold 2022 Carats Value Value per carat
USD000 USD000
July 5.97 55 9
------- -------- ----------------
7.4 67 9
------- -------- ----------------
March 19.3 116 6
------- -------- ----------------
12.7 128 10
------- -------- ----------------
8.7 104 12
------- -------- ----------------
6.6 63 9.5
------- -------- ----------------
February 11.9 211 17.6
------- -------- ----------------
8.3 96 8.3
------- -------- ----------------
13.6 78 5.8
------- -------- ----------------
7.5 75 10
------- -------- ----------------
January 6.8 63 9.3
------- -------- ----------------
Note: It is Company policy to announce all stones sold with a
value of in excess of USD50k.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR'). Upon the publication of this announcement via
Regulatory Information Service ('RIS'), this inside information is
now considered to be in the public domain.
**ENDS**
For further information, please visit BRD's website
www.bluerockdiamonds.co.uk or contact:
BlueRock Diamonds PLC
Mike Houston mhouston@bluerockdiamonds.co.uk
David Facey, FD d.facey@bluerockdiamonds.co.uk
---------------------------------- ----------------------------------
SP Angel (NOMAD and Broker)
Stuart Gledhill / Caroline Rowe Tel: +44 (0)20 3470 0470
---------------------------------- ----------------------------------
St Brides Partners Ltd (Financial
PR) bluerock@stbridespartners.co.uk
Isabel de Salis / Charlotte Page
Notes to editors:
BlueRock Diamonds is an AIM-listed diamond producer which
operates the Kareevlei Diamond Mine near Kimberley in South Africa
which produces diamonds of exceptional quality and ranks in the top
ten in the world in terms of average value per carat. The Kareevlei
licence area covers 3,000 hectares and hosts five known
diamondiferous kimberlite pipes with a combined inferred resource
of 10.4 million tonnes / 516,200 carats (February 2021); based on
its planned production of 1 million tonnes per annum, this provides
a minimum 10-year life of mine.
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