Diamondcorp Plc Polished Diamond Sales and Project Update (5689V)
April 19 2016 - 2:00AM
UK Regulatory
TIDMDCP
RNS Number : 5689V
Diamondcorp Plc
19 April 2016
19 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
POLISHED 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 production from the Lace diamond mine in the
Free State province of South Africa.
The 22.1 carat H coloured diamond sold to the Company's
beneficiation joint venture in January this year has been
manufactured into two high quality diamonds - a 7.2 carat F
coloured VVS2 emerald cut diamond and a 0.9 carat E coloured VS1
pear shaped diamond.
The two polished stones have been sold for a total of
US$261,361. DiamondCorp's 50% share of the profit on the sale of
the two polished diamonds is $71,979, lifting the total revenue on
this one stone to $182,529, or $8,256 per carat.
Commenting on the polished sales, DiamondCorp CEO Paul Loudon
said: 'This is an early indication of the significant additional
value which can be created through beneficiating special and
exceptional quality diamonds from Lace and gives management insight
into how the stones perform when they are cut and polished. To
date, all the Lace diamonds which we have beneficiated have
improved in colour, which is critical knowledge to have for
optimising the marketing of our production.'
The Company can further report that all sales proceeds from the
first tender have been collected without default and that no
diamonds were held back or withdrawn from sale.
With respect to operational issues related to breakdowns on the
Company's fleet of existing underground trucks and loaders,
management is pleased to report that it has acquired an additional
four Sandvik 20-tonne underground dump trucks, two Sandvik 7-tonne
underground loaders and two Sandvik single boom drill rigs. Three
of the trucks have already been delivered to site but require
moderate refurbishment before entering service. The fourth truck,
two loaders and two drill rigs are nearly new, having completed
less than 200m of underground decline development at another South
African non-diamond mining operation which was closed due to low
commodity prices. These units will be ready for immediate service
when delivered to the mine in the next week.
Whilst representing an unplanned additional expenditure of
approximately $1 million, the total cost of the eight vehicles,
including refurbishment of the three dump trucks, is approximately
a quarter of the price of new units at current exchange rates.
These vehicles will allow the Company to achieve tonnage ramp up to
deliver 30,000 tonnes per month of kimberlite from the Upper K4
Block to the conveyor belt from July onwards. Taking into account
the increase in bottom screen size in the plant from 1.00 mm to
1.25 mm, this production will put the Company on schedule to
produce in excess of 75,000 carats from kimberlite in 2016 and in
excess of 125,000 carats in 2017.
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
SA Corporate Advisor
Qinisele Resources Proprietary Limited
Dennis Tucker/Andrew Brady
Tel: +27 11 883 6358
This information is provided by RNS
The company news service from the London Stock Exchange
END
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