Diamond junior, West African Diamonds (AIM: WAD), which was originally spun out of African Diamonds (AIM: AFD) climbed 3.5% higher after the company said it would commence mine commissioning at the Bomboko alluvial mine in March with production expected to start in April. The Bomboko mine is located in Guinea.
West African Diamonds has installed a 10 foot Pan Plant capable of treating up to 7,000 tonnes of material per month. However, a larger 16 foot Pan Plant and a 46 tonne excavator will be installed in April, which will lift capacity to 18,000 tonnes per month. Initial feed for the pan will be supplied from a stockpile adjacent to the plant.
The diamond junior also confirmed that a Dense Media Separation unit has been installed at the Droujba kimberlite ahead of a planned bulk sampling program that it expected to start “within weeks”.
James Campbell, Deputy Chairman of West African Diamonds, commented:
"Despite the turmoil in the diamond industry, it is good news that we have been able to build our Bomboko mine on time and within budget - we have taken the asset to the brink of production and look forward to collating our first package of diamonds for sale.
Diamonds are scarce and remain highly desirable in both consumer and industrial markets. Whilst the current lack of credit may reduce prices or even cause a postponement of sales due to the hits taken by the sightholders, we are confident that the long term future for the quality of diamonds from Guinea is bright.
Droujba is a fine prospect. We eagerly await the results of the bulk sampling. With production from Bomboko and a number of attractive development and exploration projects, significant value has been uncovered in a short period. We believe WAD remains an attractive overall package."