DiamondCorp (LON:DCP) remains on course to start diamond production from tailings re-treatment at the Lace mine in the current quarter.
The miner is expanding production through development of a new block cave at the 47 level at Lace, located in Free State province in South Africa.
At full capacity, Lace will produce up to 500,000 carats a year.
In a progress update, DiamondCorp added it had received the final US$3mln loan advance from Tiffany subsidiary Laurelton Diamonds.
The Tiffany loan completes the US$36mln funding package for Lace's development and was a pre-requisite for the draw-down of a US$24mln loan from the IDC.
At the mine itself, the boxcut that will provide the surface entrance to the twin conveyor belt and services declines for the life of the mine is on schedule for completion this quarter.
Blasting on a ventilation shaft to allow the development down to the 47 level (at 470 metres down) has also got underway.
The kimberlite at Lace is open at depth, added DiamondCorp, and also contains a significant bulge between 250 metres and 360 metres depth with the potential to add additional tonnage and diamonds not currently included in the resource statement.
An underground diamond drill rig has been ordered with the definition of this bulge "a priority" said the company.
Paul Loudon, chief executive, added he was pleased with the progress made at Lace in the first quarter.