Paragon Diamonds (LON:PRG) remains on course to bring its Lemphane mine in Lesotho into production in the near term, it told shareholders at its annual meeting.
Simon Retter, Paragon’s chief financial officer, said: "Lemphane is believed to be the last world-class kimberlite to be developed in Lesotho and has an excellent address being located close to Gem Diamonds' Letseng pipe which is renowned for the recovery of exceptionally large and valuable diamonds."
A recent independent size frequency and revenue modelling report indicated preliminary diamond values from Stage 1 production at Lemphane will be between US$930 - US$1,025/carat for grades of 2 carats (cts) per hundred tonnes while the size frequency study indicated that 12% of carats will be over 9cts.
"The remainder of 2014 looks to be a highly exciting period for Paragon Diamonds as we move to stage 1 production, subject to completing financing.
“We expect to report on further drilling at Lemphane and also a scoping study”.