TIDMDCP
RNS Number : 1351U
Diamondcorp Plc
05 April 2016
5 April 2016
DiamondCorp plc
AIM share code: DCP & JSE share code: DMC
ISIN: GB00B183ZC46
(Incorporated in England and Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)
("DiamondCorp", "the Group" or "the Company")
Lace DIAMOND mine
march quarter diamond sales and Project update
DiamondCorp, the Southern African diamond mining, development
and exploration company, is pleased to provide the following update
on diamond sales and March quarter production from the Lace diamond
mine in the Free State province of South Africa.
Highlights
-- A total of 8,648 carats of diamonds have been sold through a
combination of direct sales and competitive tender, marking the
first sale of kimberlite diamonds from the Lace mine since
1931.
-- The Company experienced good demand for its production in all
size categories, and all lots offered for sale were sold.
-- 6,247 carats were diamonds greater than 1.25 mm in diameter
which were recovered from kimberlite development and production
ramp up. These diamonds, which are representative of the plant in
its current production configuration, were sold for a total of
US$1.09 million, representing an average of $175 per carat.
-- 2,401 carats were from tailings production and fine diamonds
less than 1.25 mm in diameter recovered during bulk testing when
the plant was configured with finer bottom screens. These diamonds
sold for a total of $0.046 million representing $19 per carat.
-- Two special stones were included in the sales. A 22.11 carat
diamond reported previously which was sold into the Company's
beneficiation joint venture as an H coloured stone at $5,000 per
carat and a 1.08 carat Type II purple stone which sold at tender
for $6,363 per carat.
-- The purple diamond is an early indicator of the extra value
that Type II and coloured stones can add to the Lace resource.
-- The 22.11 carat stone has been cut and polished into two
stones - a 7.19 carat F coloured VVS2 emerald shape diamond and a
E/F colour 0.85 carat pear shape diamond. The Company will receive
an additional 50% of the profit from these stones when the polished
diamonds are sold.
-- The significant increase in colour achieved when these stones
were cut and polished is also an early indicator of the potential
value accretion beneficiation can add to the Lace resource.
-- Production from Lace in the first three months of 2016
comprised 6,324 tonnes of K4 kimberlite at an average recovered
grade of 36 carats per hundred tonnes (cpht), 8,327 tonnes of K6
kimberlite from ventilation tunnel development at average recovered
grade of 8 cpht and 18,307 tonnes of tailings at an average
recovered grade of 5 cpht. Total diamonds recovered for the period
were 3,438 carats.
-- Blasting of the slot for the first production trough in the
Upper K4 Block together with a 1,500 tonne underground ore pass and
silo is on track for production to achieve 30,000 tonnes of
kimberlite mining per month from July onwards.
Diamond market and sales
Management commenced diamond sales in the last week of March
through a combination of direct sales and competitive tender,
marking the first sale of kimberlite diamonds from the Lace mine
since 1931.The large number of diamantaires who booked viewing of
the diamonds on offer and the prices achieved has indicated that
strong demand exists for the Lace production.
A total of 8,648 carats of diamonds were sold, comprising 6,247
carats of kimberlite diamonds greater than 1.25 mm in diameter and
2,401 carats of tailings diamonds and fine diamonds less than 1.25
mm in diameter recovered during bulk testing when the plant was
configured with finer bottom screens. The kimberlite diamonds sold
for $1.09 million, representing an average of $175 per carat, and
the tailings and fine diamonds sold for $0.046 million,
representing an average of $19 per carat.
Two special stones were included in the sales: a 22.11 carat
diamond reported previously which was sold into the Company's
beneficiation joint venture as an H coloured stone at $5,000 per
carat and a 1.08 carat Type II purple stone which sold at tender
for $6,363 per carat. The purple diamond is an early indicator of
the extra value that Type II and coloured stones can add to the
Lace resource.
The 22.11 carat stone has been cut and polished into two stones
- a 7.19 carat F coloured VVS2 emerald shape diamond and a E/F
colour 0.85 carat pear shape diamond awaiting GIA certification.
The Company will receive an additional 50% of the profit from these
stones when the polished diamonds are sold. The significant
increase in colour achieved when these stones were cut and polished
is also an early indicator of the potential value accretion
beneficiation can add to the Lace resource.
Commenting on the results of the initial diamond sales,
DiamondCorp CEO Paul Loudon said: 'We are extremely pleased with
the level of demand shown for the Lace production and the prices we
achieved in all size categories. Overall sentiment in the diamond
market remains relatively positive compared to the end of 2015, and
the price increases seen in January are being maintained.'
March quarter production
During the three months ended 31 March 2016, the Company's
74%-owned subsidiary Lace Diamond Mines (Pty) Limited (LDM)
continued with the implementation of the revised development
schedule and budget for the ramp up of commercial production from
underground kimberlite mining at the Lace mine.
Underground mining and development resumed in January and
remains on target to achieve production of 30,000 tonnes per month
by July. Tailings retreatment has also resumed as an adjunct to
processing of kimberlite from underground.
Production from Lace in the first three months comprised 6,324
tonnes of K4 kimberlite at an average recovered grade of 36 carats
per hundred tonnes (cpht), 8,327 tonnes of K6 kimberlite from
ventilation tunnel development at average recovered grade of 8 cpht
and 18,307 tonnes of tailings at an average recovered grade of 5
cpht. Total diamonds recovered for the period was 3,438 carats.
Blasting of the slot for the first production trough in the
Upper K4 Block together with a 1,500 tonne underground ore pass and
silo is on track for production to achieve 30,000 tonnes of
kimberlite mining per month from July onwards.
The 400 tonne per hour conveyor belt system is performing well
and the 200 tonne per hour dense media separation plant is now
operational in production mode, with bottom screens set at 1.25 mm
bottom screen size.
The only operational difficulty being experienced is
availability of trucks and loaders on the production level. This
matter is being addressed with the proposed purchase of near new
rolling stock lying idle at one of several third party mines which
have shut as a result of commodity price weaknesses. The purchase
of these trucks and loaders from existing cash resources is due to
be completed in the coming month, ensuring that the truck
availability required to deliver 30,000 tonnes per month of
kimberlite to the conveyor belt is on place when it is
required.
Contact details:
DiamondCorp plc
Paul Loudon, Chief Executive
Tel: +27 56 216 1300
Euan Worthington, Chairman
Tel: +44 7753 862 097
UK Broker & Nomad
Panmure Gordon (UK) Limited
Adam James/Atholl Tweedie
Tel: +44 20 7886 2500
JSE Designated Advisor
Sasfin Capital (a division of Sasfin Bank Limited)
Megan Young
Tel: +27 11 445 8068
This information is provided by RNS
The company news service from the London Stock Exchange
END
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