Operations Update (1979X)
February 10 2012 - 4:59AM
UK Regulatory
TIDMDCP
RNS Number : 1979X
Diamondcorp Plc
10 February 2012
DiamondCorp plc JSE share code: DMC AIM share code: DCP ISIN:
GB00B183ZC46 (Incorporated in England and Wales) (Registration
number 05400982) (SA company registration number 2007/031444/10)
('DiamondCorp' or 'the Company')
OPERATIONS UPDATE
DiamondCorp plc, the African diamond mine development and
exploration company, is pleased to provide an update on activities
at the Lace mine in South Africa and kimberlite exploration in
Botswana.
LACE MINE
The Company advises that SA Diamond Exchange has undertaken a
revaluation of the 2,168 carats recovered from the bulk test at the
Lace Mine last year and estimated a price of $172 per carat in the
current market. This represents an 7.5 per cent increase from the
$160 per carat valuation of the first 1,850 carats from the bulk
test announced last October.
The increase in value is a reflection of slightly better overall
diamond quality in the final 318 carats, as well as a moderate
firming of prices for Lace diamonds since the market correction in
September 2011.
In light of the prices for Lace diamonds, tailings retreatment
has recommenced on an initial single shift basis. This will be
monitored over the next 60 days to confirm that an increase to two
shifts will generate a positive contribution to cashflow.
In the meantime, SRK Consulting is on track this month to
complete the Independent Engineering Report on the 47 level block
cave proposed for the Lace mine. The SRK report is required to
progress negotiations with several potential project finance
providers looking to finance the underground development which is
designed to mine 1.2 million tonnes of kimberlite and produce up to
500,000 carats of diamonds per annum.
Construction of a new heavy equipment maintenance and rebuild
workshop has been completed and major rebuilds of the Lace mine
underground mining fleet have started in readiness for rapid
re-commencement of underground development once project finance is
secured.
DiamondCorp is pleased to report the current group cash balance
is approximately GBP2 million with no debt, allowing project
financing negotiations to be undertaken in a considered manner.
BOTSWANA KIMBERLITE EXPLORATION
Preliminary results of kimberlite samples recovered from the
five large diameter (455mm) drill (LDD) holes undertaken on
kimberlite J-01 are now available.
The samples totalling 388.34 tonnes were processed through a
modified circuit on the 65tph dense media separation plant at the
company's Lace Mine in South Africa. The circuit was modified
specifically to treat the LDD samples from Jwaneng. Each borehole
was treated as a separate sample with the plant being purged
between samples. Each sample was spiked with tracers to monitor
plant performance. All tracers were recovered.
A total of two macro diamonds (diamonds larger than 0.5mm in
size) totalling 0.114 carats have been recovered to date.
In light of the low recovered grades from both J-01 and the
previously low recoveries announced from J-05, DiamondCorp has
decided not to proceed with further exploration on this property
and will hand all rights back to the tenement holder
Geoperspectives (Pty) Limited.
Commenting on the results, DiamondCorp's managing director Paul
Loudon said: "Despite being located near to the richest diamond
mine in the world and the encouraging mineral chemistry displayed
by these kimberlites, mini bulk tests suggest they do not contain
macrodiamond grades sufficient to support a large-scale commercial
diamond mine.
Management remain in active discussion with numerous parties
regarding additional kimberlite projects in Botswana and other
diamondiferous regions of southern Africa."
London
10 February 2012
The Competent Person responsible for the technical information
contained in this announcement is Mr Paul Zweistra (Pr. Sci. Nat.,
Registration number 400016/93) a full-time employee of VP3. VP3 and
Mr Zweistra have given their permission for their work to be quoted
in this announcement and have reviewed the information contained
herein.
AIM Nomad: Fairfax I.S. plc
AIM Brokers: Fairfax I.S. plc, Ocean Equities Ltd JSE Sponsor:
PSG Capital (Pty) Limited DiamondCorp plc, Paul Loudon +44 20 3151
0970/+27 56 212 2308 Ewan Leggat/Laura Littley, Fairfax I.S. plc
+44 207 598 5368 Guy Wilkes, Ocean Equities Limited +44 207 786
4370 John-Paul Dicks, PSG Capital (Pty) Limited +27 21 887 9602
Charmane Russell/Marion Brower, Russell & Associates +27 11 880
3924
This information is provided by RNS
The company news service from the London Stock Exchange
END
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