Diamondcorp Plc LACE MINE DEVELOPMENT UPDATE (0714C)
April 11 2013 - 2:00AM
UK Regulatory
TIDMDCP
RNS Number : 0714C
Diamondcorp Plc
11 April 2013
11 April 2013
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", "the Group" or "the Company")
Lace mine development update
Highlights
-- Second US$3 million tranche of the Tiffany loan received
finalising R320 million finance package for the Lace mine
development.
-- New boxcut excavation and underground development activities commenced.
-- Additional underground loaders and trucks have been secured and rebuilds underway.
-- Plant upgrade work continues on schedule for tailings
re-treatment to restart in the current quarter.
-- Key underground and plant personnel recruited.
-- Underground diamond drill rig ordered and awaiting delivery; bulge definition a priority.
DiamondCorp, the Southern African diamond development and
exploration company, is pleased to provide the following update on
activities relating to the 47 level block cave development at the
Lace mine in the Free State province of South Africa.
Funding finalised
On 10 April 2013, the Company received on schedule the second
and final tranche of $3 million (GBP1.96 million) of loan funds
from Laurelton Diamonds, Inc., a wholly-owned subsidiary of Tiffany
& Co. The combination of funding through the $6 million Tiffany
loan, GBP4.2 million of convertible bonds (issued in December 2012)
and R220 million (GBP15.6 million) from the Industrial Development
Corporation of South Africa (as announced on 21 September 2012)
completes the R320 million (GBP23 million) Lace project financing
package.
The Main pipe at the Lace mine (DiamondCorp 74% interest)
contains 33.1 million tonnes of kimberlite with an indicated and
inferred resource to a depth of 855m containing approximately 13.4
million carats at an average grade of 40.1 carats per hundred
tonnes. At a carat value of $160 per carat, the resource has an
in-ground value in excess of $2.1 billion. The deposit will be
mined by block cave mining, with three caves planned over the next
25 years on the 47, 67 and 85 levels (at depths of 470m, 670m and
850m respectively). The kimberlite is open at depth, and also
contains a significant bulge between 250m and 360m depth with the
potential to add additional tonnage and diamonds not currently
included in the resource statement.
Development activities February-March 2013
In February, the Company commenced excavation of a new 66,000
bank cubic metre (bcm) boxcut which will provide the surface
entrance to the twin conveyor belt and services declines for the
life of the mine. A total of 23,000 bcm of surface sediments and
clay material was excavated to the end of March and the boxcut is
expected to be completed on schedule in the current quarter.
Underground blasting commenced during March with a vent raise on
the 16 level to provide sufficient interim ventilation for
continuous blasting of the twin decline development to the 47
level. The raise development is continuing on schedule and is
expected be completed in the current quarter. Development also
commenced on a tipping arrangement on the 24 level to allow loading
of development waste into dump trucks for hauling to surface until
such time as the conveyor belts are installed.
During the period, the Company completed the rebuild of a 9.5
tonne underground loader and two underground dump trucks in its
on-site heavy equipment workshop. Two additional low profile
loaders and three additional underground dump trucks were purchased
in February, completing the fleet requirements for the underground
development. These units will be rebuilt and commissioned during
the next two quarters, in line with the planned development
programme.
Essential upgrades are underway on the mine's 1.2 million tonne
per annum dense media separation plant to allow smooth transition
from tailings to kimberlite processing, and relieve front-end
bottlenecks in the re-crush circuit. These modifications are on
schedule and plant re-commissioning is planned during the current
quarter, allowing tailings re-treatment activities to
recommence.
Several key operational personnel were recruited during the
period, including a mine overseer with considerable experience in
underground kimberlite development and block caving and an
experienced diamond processing plant manager. The Company is not
experiencing any difficulty in securing personnel with the
experience and skills required for the mine development.
The Company has prepared a drilling cubby on the 26 level inside
the Main pipe and has ordered a new skid mounted underground
drilling rig which is being shipped from Australia and is expected
to be delivered and commissioned during the next quarter. A total
of 2,000m of underground drilling is then planned in the bulge area
as well as the 47 level block cave area to better define the
kimberlite margins and facies distribution.
DiamondCorp's CEO, Paul Loudon said: "We are pleased with the
progress achieved with operations in the first quarter and remain
on target to commence diamond production from tailings re-treatment
in the next three months. This will initially be on a one shift
basis while the upgraded processing plant is re-commissioned. We
will then have the capacity to ramp up to three shifts in the
second half of the year depending on diamond prices."
The Company also announces that it will shortly publish an
updated corporate presentation on its website.
Contact details:
DiamondCorp plc
Paul Loudon, Chief Executive
Tel: +44 20 3151 0970
+27 56 212 2930
UK Broker & Nomad
Panmure Gordon (UK) Limited
Dominic Morley/Adam James
Tel: +44 20 7886 2500
Joint Broker
SP Angel Corporate Finance LLP
Ewan Leggat/Laura Littley
Tel: +44 207 598 5368
JSE Sponsor
PSG Capital (Pty) Limited
John-Paul Dicks
Tel: +27 21 887 9602
This information is provided by RNS
The company news service from the London Stock Exchange
END
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