Paragon Diamonds (LON:PGD) said expects to make revenues of US$36mln in the first year of production from its two diamond mines in Lesotho, rising to US$60mln annually thereafter.
Output will begin from Mothae six months after its official purchase from the Lucara Diamond Corporation, which is imminent.
Nearby Lemphane, meanwhile, is expected to be up and running in the first half of next year.
Paragon said an independent study on Mothae exceeded management’s initial expectations and confirmed the kimberlite “represents a low cost opportunity to generate significant value through the potential recovery of large high value diamonds”.
The study also established a lower than expected strip ratio, which means the deposit will be cheaper to mine. Potential diamond values could be up to US$2,000 a carat.
The company is currently in the process of concluding funding for both projects.
The update accompanied first half results. As is common for businesses at this formative stage of their development, Paragon was loss-making. For the six months to June 30 the shortfall was £482,000.