DiamondCorp (LON:DCP) said the start of underground mining at the historic Lace project in South Africa will be delayed slightly following recent industrial action – but will still be a full four months ahead of the original schedule.
The six-week Association of Mineworkers and Construction Union strike in October and November slowed progress by a “few weeks”, the company said.
It means operations will commence in the second half of this year rather than the end of the first half.
DiamondCorp said productivity has improved 15% compared with the period before the strike, although mine development costs are currently around 8% ahead of forecast.
“Overall, mine development expenditure remains close to budget,” it added.
In a comprehensive update on progress, the firm told investors the underground conveyor serving the Upper K4 Block is 80% fabricated and 30% installed, and there is sufficient water for all of this year’s production.
Underground core drilling, meanwhile, continues to intercept high-grade kimberlite above 365 metres that will be bulk tested for inclusion in an updated resource statement planned for early in the second half.
Finally, diamond recoveries from Lace’s tailings totalled 18,354 carats in 2014 at a grade of almost six carats per hundred tonnes – well ahead of the forecast five carats. It sold 21,700 carats at US$63 a carat, which was slightly higher than expected.