Namakwa Diamonds (LON:NAD) said the first sale in Antwerp of diamonds from its Kao mine in Lesotho, southern Africa, achieved prices that were 17 per cent higher than anticipated.
The company sold 16,388 carats at a recent tender at an average price of US$395 per carat, with an average diamond size of 0.36 carats.
The largest diamond sold was 38 carats at US$6,668 per carat, with an 11 carat diamond selling for US$15,020 per carat and four diamonds with sizes varying between 6 and 14 carats selling for an average of US$7,100 per carat.
The sale realised revenues of US$6.47 million, with achieved prices around 17 per cent higher than initial estimates. The diamonds sold were sourced predominately from hardrock kimberlite ores.
Since January 2012, the group has now sold 49,771 carats from the Kao mine, realising approximately US$13.76 million in revenue.
Regarding operations at Kao, Namakwa has started installation of a pipeline from the confluence of the Kao and the Malibamotso rivers at a capital cost of around US$1.75 million to alleviate a potential water shortage that may impact on operations from early July.
Capacity levels in the mine's dedicated 400,000 cubic metre freshwater dam are currently significantly lower than anticipated for the time of year, predominately a result of water being released during the delayed completion of the dam's construction and drought like conditions in the region during the typically wet months of October to April.
Flow levels in the rivers adjacent to the mine are lower than medium and long-term averages for the region.
However, there is still flow in the Kao and Mabonyane rivers, and it is expected that this will be sufficient to allow the mine to operate in its current configuration until early July 2012.
Thereafter, without an alternative source of process water, it is likely that there would be insufficient flow to allow the mine to operate at a rate in excess of 100 tonnes per hour, hence the new pipeline.
Namakwa expects to receive the necessary permits for the pipeline imminently and will then be able to complete construction by July.
Subject to the proposed water pipeline being completed by July 2012 and providing sufficient process water, as designed, operator Storm Mountain Diamonds has maintained its full-year 2012 production target at Kao of 170,000 carats.
Namakwa also maintains alluvial mining operations in the North West Province of South Africa and resource-development properties in the Northern Cape Province of South Africa and the offshore marine environment of Namibia.