Operational Update
December 23 2009 - 2:01AM
UK Regulatory
TIDMPDF
RNS Number : 6006E
Pangea DiamondFields PLC
23 December 2009
Pangea DiamondFields plc
('Pangea' or the 'Company')
Operational Update
Pangea DiamondFields plc (AIM: PDF), the diamond producer and exploration
company, announces that the upgrade of processing facilities at the Company's
Cassanguidi project in Angola is now complete.
The Interim Results announcement of 29 September projected a processing level
expected to be around 37,500 m3 of in situ gravel mined and processed per month,
producing around 8,000 carats per month. With the upgrade of the processing
plant now complete, management has taken the opportunity to reassess these
targets and the Cassanguidi operation will now work to ramp up production in the
first quarter of 2010 to a revised target of 6,000 carats per month based on the
plant processing approximately 30,000 m3 of in situ gravels. Cash costs at
steady state production levels are expected to be between US$ 16.00 and US$
18.00 per m3 of in situ gravel mined and processed. The ramp up to production
will commence when seasonal rains abate in the New Year. Additional earthmoving
equipment is being relocated from our South African operations to Cassanguidi
early in 2010 to coincide with the expected improvement in weather and to
augment the fleet currently on the ground.
December's production has been negatively impacted by logistical challenges and
breakdowns with the project's primary excavators which are in the process of
being resolved. This is likely to hamper production in January ahead of the next
expected diamond sale in late January 2010. Notwithstanding the shareholder loan
announced on 10 December 2009, the Company continues to be reliant as going
concern on the Cassanguidi production scaling up without delay and being able to
source additional bridging funding if that proves not to be the case.
Chief Executive Boris Kamstra said, ""Cassanguidi target production at current
prices will put the Company in a cash positive position. At that point, we
intend to assess our portfolio of projects against an expected improvement in
rough diamond prices and revise our strategy accordingly, including a review of
the financing options required to achieve the Company's strategic plans. This
process will begin early in 2010."
Further information:
+---------------------------+----------------------------+---------------------------+
| Pangea DiamondFields plc | Ambrian Partners Limited | Walbrook PR Ltd |
| | | |
+---------------------------+----------------------------+---------------------------+
| Boris Kamstra | Richard Brown / | Louise Goodeve / Leah |
| | Richard Greenfield | Kramer |
+---------------------------+----------------------------+---------------------------+
| T: +27 11 438 4100 | T: +44 (0) 20 7634 4700 | T: +44 (0) 20 7933 8780 |
| | | |
+---------------------------+----------------------------+---------------------------+
Notes to Editors:
About Pangea Diamondfields PLC
Pangea DiamondFields plc (AIM: PDF) is an emerging diamond producer and
exploration company with a portfolio of eight projects each with multiple
resource targets, located in the Central African Republic, Democratic Republic
of the Congo, South Africa and Angola. The Company aims to minimise risk by
diversifying its projects geographically.
PDF listed on AIM in October 2006 and is led by a strong management team, with a
track record for creating shareholder value in mineral exploration.
For more information on PDF, please visit:
http://www.pangeadiamondfields.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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