Diamondcorp (LON:DCP) remains on track to start underground production from its Lace mine in South Africa next year, with development on schedule and within budget.
Definition drilling has also intersected significantly more high-grade kimberlite on the eastern side of the pipe above the 345m level than was projected in the original Lace geological model, Diamondcorp said.
This Upper K4 Block has the potential to add at least one million tonnes of additional kimberlite that could be mined without additional project finance while the 47 Level Block Cave development progresses.
In the three months to March, the tailings retreatment plant at Lace processed 149,957 tonnes of tailings against a budget of 140,000 tonnes.
Diamond recoveries for the period totalled 6,953 carats at a recovered grade of 4.64 carats per hundred tonnes (cpht) against a budget of 5.00 cpht.
Diamondcorp started to sell the diamonds recovered from the tailings from february with ten sales scheduled for this year.
Sales for the year to date totalled 7,505 carats for proceeds of $471,160. The average sales price of $63 per carat is in line with forecasts, the company said.
At current prices, the tailings re-treatment is forecast to generate positive cashflow of R9 (£0.50) per tonne.
Demand for rough diamonds has also improved, it added, and prices have increased 5-10% over the prices achieved in December.
Diamondcorp expects the market to be steady to modestly higher for the balance of 2014, with potential for price strengthening in 2015 as world economies continue to recover.