Africa focused Paragon Diamonds (LON:PRG) is eyeing key milestones over the coming months, including bulk sampling results from its Lemphane project in Lesotho.
The project is one of five major kimberlite pipes in Lesotho and Paragon hopes the findings will highlight its potential.
The firm, which released 2011 results today, is also eyeing a maiden resource at its Motete dyke in Lesotho, where it has been estimated more than 1 million tonnes of accessible kimberlite.
Last year was an exciting one, said the company, which is aiming to fast track the Lesotho projects into production.
Given the potential in Lesotho, it decided to put its Sierra Leone operations on care and maintenance from August last year to focus there, it said, and the board is currently reviewing options for the Sierra Leone assets.
Chairman Frank Scolaro told investors: "I am delighted by the progress we have made during our first full year since listing especially in Lesotho where the ongoing results have proved consistently encouraging."
Scolaro noted that due to the care and maintenance move, this has led to a write-down of the value of the Sierra Leone assets for accounting purposes, incurring an impairment charge.
But he stressed this had not affected the firm's cash balance and importantly had allowed the company to generate significant on-going cost savings which can be re-invested into fast tracking the Lesotho projects.
"We are now very focused on building the company around the Lesotho projects and delivering further rapid development of the Motete Dyke system and bulk sampling at Lemphane. I look forward to reporting on the results at both of these key projects over the coming months."
For the year to December 31 last year, the loss was £14 million, mainly attributable to the impairment charge of £14.7mln.
As at year end, the firm had cash of £1.2 million, and post year-end there was a further fundraising of £1.7 million.
Shares in Paragon Diamonds were up 1.84 per cent this morning, at 20.75 pence.