www.diamondcorp.plc.uk
DiamondCorp plc is an emerging diamond producer focused on maximising shareholder value through the development of high margin diamond production assets. The company is incorporated in the UK and the highly prospective diamondiferous regions of South Africa and Botswana are its chosen areas of operation.
DiamondCorp made significant steps towards being long-term producer, says CEO Paul Loudon
DiamondCorp (LON:DCP) has made significant steps towards its goal of becoming a long-term diamond producer, chief executive Paul Loudon told investors in the group’s interim results statement this morning.
In the six months ended June 30 2011 DiamondCorp was focussed on the ongoing underground development programme at the Lace mine in South Africa, where bulk sampling below historic mine workings is returning encouraging results.
This morning the company confirmed that its mining operations, to recover the bulk samples, continues direction across the pipe and it remains in the kimberlite.
It said that it is now working through a lower amount of surrounding rock compared to the kimberlite it initially encountered. The last two sub-samples (of 837 and 630 tonnes) returned recovered grades of 22 carats and 30 carats per hundred tonnes respectively.
Importantly it said that the ground conditions in this higher grade kimberlite are ‘significantly better’ than on the western side of the pipe, where it encountered lower grade and stony ground. According to DiamondCorp said that this is allowing ‘a better mining advance towards completion of the bulk sample.’
“Having successfully re-accessed the Lace mine below any of the old workings, we are now determining the grade and carat value at the top of the first mining block and expect to have this information next month,” Loudon said.
“At the same time, we have commenced our mini bulk testing programme on our two diamondiferous kimberlites in Botswana and expect to have these results before the end of 2011.”
So far DiamondCorp has processed a total of 14,211 tonnes of kimberlite and from this it has recovered 1,837 carats of diamonds.
The company said that it is encouraged that the diamond quality remains consistent with the initial parcel, which was valued at an average of US$205 per carat at the SA Diamond Exchange last month.
“Approximately 40 per cent of the diamonds are larger than one-third of a carat, and more than 80 per cent of the diamonds are gem quality,” DiamondCorp said. The largest gem diamond recovered is 20.54 carats, and a 1.01 carat pink diamond has just been recovered.
Elsewhere in Botswana, Diamond is progressing its core drilling programme on the J-01 kimberlite, which spans 10 hectares, about 10 kilometres southeast of De Beers Jwaneng mine – the world’s ‘richest’ diamond mine. And a second drilling rig is currently being moilised to the smaller J-05 diamondiferous kimberlite, which is nearer to Jwaneng.
The drill programme aims to better define the contact margins of J-01 and provide an indicative diamond grade of both kimberlite pipes by the end of the year.
In terms of its financials the diamond mine developer reported a £1.16 million net loss (compared to a £1.6 million loss in the comparative period of last year). During the period the group raised £3.48 million of new equity which is being used to facilitate the ongoing work at Lace and at the Botswana kimberlites.
