TIDMBRD
RNS Number : 8157J
BlueRock Diamonds PLC
15 December 2022
BlueRock Diamonds PLC / AIM: BRD / Sector: Natural Resources
15 December 2022
BlueRock Diamonds PLC ('BlueRock' or the 'Company')
Operations and Corporate Update
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 on
operational and corporate activity.
Operations Update
Overview
The results of the two-month test to determine the realistic
capacity of the Kareevlei plant, which commenced in mid-October and
was carried out with the assistance of mining and processing
specialists, confirmed that production of marginally below 90,000
tons per month is achievable which is in line with previous
guidance. Of more importance is confirmation that the plant was not
affected to any significant extent by wet weather experienced in
October and November, provided that sufficient ore is available.
Replacement of the grids and other components in the plant should
increase throughout and improve reliability and quality (size) of
diamond production.
Mining focused on the KV2 pit at Kareevlei. Ore mined was the
highest in two years, however the strip ratio decreased to 1 from
4.30 YTD. This should increase with further development work to be
undertaken on KV1 and KV3.
The mining and processing activities are being reviewed with the
assistance of independent specialists and will be used in the
planning and budget process currently in progress.
A detailed cost review identified opportunities to reduce costs,
and these are being implemented, as are enhanced security and
supervision, further detail on which is included below.
Production and Market
Diamond prices have reduced during the quarter, although this
has been partially offset by higher production, albeit at a lower
average grade. Development of KV1 is planned for the new year.
Recent production in October and November yielded an average
grade of 4.4 cpht, with the largest stone of 10.2 carats.
Historically, the Board has updated the market upon the discovery
of large stones with an indicative initial valuation of over
$100,000. However, to reduce uncertainty about potential revenue
and the value of tenders the Board has revised the Company policy
regarding announcements of diamond stones and going forward will
only announce stones which have realised in excess of $50,000 on
tender. There will be announcements for materially significant
stones where appropriate.
The following significant stones were sold as part of the
November tender:
Stone size - $/carat Value $
carats
10.19 10,001.00 101,947.00
---------- -----------
8.77 7,753.00 68,000.00
---------- -----------
8.59 9,892.00 85,000.00
---------- -----------
Security
Security throughout the mine site has been enhanced with the
introduction of an independent contractor. During November an
attempted heist of diamonds, which were being transported from the
mine to Kimberley, was intercepted. There was no loss or injury to
people, equipment or stock.
Outlook
The focus remains on improving the performance of the mine and
the plant.
Adequate funding for the operations of both BlueRock Diamonds
and Kareevlei Mining, and potential capital expenditure, is a
priority and is being assessed in conjunction with the review of
activities at the mine.
The Company expects to provide an update on production for the
full year in Q1 2023.
Corporate Update
Loan note - M Poole and T Leslie
Further to the update given on 22 November 2022, the Company has
not yet reached an agreement for the repayment of the loan note,
which was due on 16 October 2022.
The Company will provide further updates as appropriate.
Kareevlei facility - Teichmann South Africa ('TSA')
Further to the update given on 22 November 2022, the
indebtedness from the Company to TSA was approximately R55 million
at the end of November 2022, R25 million in excess of the agreed
facility limit of R30 million for the first six months from 15th
August 2022, to reduce to R20 million thereafter. The last payment
to TSA was in August 2022.
TSA has not exercised its rights in the event of breach and
there are ongoing discussions with TSA to obtain further support to
enable Kareevlei to continue operating.
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 BlueRock's website
www.bluerockdiamonds.co.uk or contact:
BlueRock Diamonds
Victor Dingle, CEO v.dingle@bluerock.co.uk
SP Angel (NOMAD and Broker)
Stuart Gledhill / Harry Davies-Ball 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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END
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