Rockwell Diamonds (TSE:RDI) (JSE:RDI) jumped to its 52-week high on Tuesday after recovering four rough diamonds each exceeding 100 carats in weight from its operations in the Middle Orange River region during the past three weeks, the company said in a statement.
The company, which mines for diamonds in the Democratic Republic of Congo, also said it has recovered a higher than average number of diamonds smaller than 100 carats, reinforcing management's decision to focus operations in this region.
Two stones weighing 116 carats and 138 carats, respectively, were recovered at the Saxendrift processing plant, originating from the Saxendrift extension pit that was acquired with the purchase of the Jasper project last year, while a 126-carat stone and a 169-carat stone were found from a mining area that has recent been opened up at the Saxendrift Hill Complex (SHC).
Rockwell said Tuesday that all of these stones will be sold into the beneficiation joint venture it has with Steinmetz Diamonds, at market value.
"Recovery of four rough diamonds exceeding 100 carats within a three week period is a milestone in our objective to grow production in the MOR region where we have a significant inventory of high value in situ diamonds," said president and CEO James Campbell in the release.
"It also attests to the quality of our recovery processes where the implementation of fit-for-purpose technology has improved our ability to recover large stones."
This includes the Bulk X-ray technology which it pioneered in the full production environment at the recently commissioned SHC, as well as efficiency initiatives at Saxendrift in the pan plant.
"Our objective to increase alluvial production volumes in this area to 500,000m3 per month is aimed at improving the quarterly earnings visibility of the company through the more regular production of large stones such as these," said Campbell.
Shares of Rockwell rose to a 52-week high of 38 Canadian cents in Toronto on Tuesday, lately up at 36 cents - an increase of over 24 per cent. Its stock has almost doubled in value since the beginning of the year.