Q117 sees significant improvement in operational performance
Volumes processed in Q117 totalled 865,000m3 up 10% compared to 788,000m3 in Q116, and also up 10% compared to 789,000m3 in Q416.
Carats produced totalled 5,688cts in Q117 up 88% from 3,025cts in Q116, and up 20% from 4,726cts in Q416.
The average price per carat was US$1,801/ct in Q117 up 26% from US$1,432/ct in Q116, and up 24% from US$1,448/ct in Q416.
As a result of the improved production levels and diamond prices, revenues totalled US$9.3m in Q117 up 40% from US$6.7m in Q116, and up 31% from US$7.1m in Q416.
Mining operations moved to contractor mining from May.
Construction at Wouterspan remains on track for August 2016.
NORTHLAND CAPITAL PARTNERS VIEW: Q117 has seen an improved operational performance by Rockwell Diamonds and was largely due to enhancements at the Remhoogte-Holsloot Complex Project that outweighed the wind down of operations at the Saxendrift Project. Rockwell had a difficult 2016 but has made large strides forward in the first financial quarter of the Company’s year-end. The return of production at Wouterspan should further strengthen the Company’s operations as it looks to reach its target of processing 500,000m3 of gravel per month.
Drill results including 3m at 14.64g/t Au and 3m at 7.25g/t Au
Keras Resources reports the results of its reverse circulation drill programme from the Prince of Wales project, located on the Grants Patch lease, with results including; 3m at 14.64g/t Au from 66m (PWRC005) and 3m at 7.25g/t Au from 60m (PWRC002).
Clean up of pit underway to allow the re-access of the decline. The Company expects to begin mining in Q416.
The Company will now commence a resource development programme using diamond drilling.
NORTHLAND CAPITAL PARTNERS VIEW: Keras Resources is rapidly advancing its underground Prince of Wales Project towards production in the next six months under its tribute agreement with Norton Goldfields. The project has a historic underground resource of 154,000t at a grade of 8g/t Au and the Company believes around 20,000t of high-grade mineralisation can be extracted from the previously developed Consols decline.