Paragon Diamonds' (LON:PRG) immediate focus is securing a processing plant so it can kick off first stage production at its flagship Lemphane mine in Lesotho, it told investors in its latest half year report.
According to a recent independent report, Stage 1 is expected to recover over 100 diamonds larger than 9 carats, including stones up to 100 carats.
The firm says it's on course to start this two year phase of production early next year and generate first revenues of US$9mln per annum at the open pit.
20,000 carats are targeted with an estimated average value of US$930 - US$1,025 per carat.
The diamond recovery numbers are consistent with those achieved at the nearby Letseng deposit, and if achieved would see Lemphane added to the list of world class kimberlite pipes in Lesotho, Paragon noted.
The six month period to end June saw the firm secure a mining lease as it progresses its aim to build a cash generating production company with a portfolio of multi-stage projects. It also saw the appointment of investment specialist Philip Falzon Sant Manduca as executive chairman.
The loss before tax was £533,000 compared to a loss of £538,000 in the same period in 2013.