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Lace Mine Development Update
DiamondCorp plc
JSE share code: DMC & AIM share code: DCP
ISIN: GB00B183ZC46
(Incorporated in England and Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)
("DiamondCorp", “the Group” or "the Company")
LACE MINE DEVELOPMENT UPDATE
Highlights
• Second US$3 million tranche of the Tiffany loan received finalising R320 million
finance package for the Lace mine development.
• New boxcut excavation and underground development activities commenced.
• Additional underground loaders and trucks have been secured and rebuilds
underway.
• Plant upgrade work continues on schedule for tailings re-treatment to restart in the
current quarter.
• Key underground and plant personnel recruited.
• Underground diamond drill rig ordered and awaiting delivery; bulge definition a
priority.
DiamondCorp, the Southern African diamond development and exploration company, is
pleased to provide the following update on activities relating to the 47 level block cave
development at the Lace mine in the Free State province of South Africa.
Funding finalised
On 10 April 2013, the Company received on schedule the second and final tranche of $3
million (£1.96 million) of loan funds from Laurelton Diamonds, Inc., a wholly-owned subsidiary
of Tiffany & Co. The combination of funding through the $6 million Tiffany loan, £4.2 million of
convertible bonds (issued in December 2012) and R220 million (£15.6 million) from the
Industrial Development Corporation of South Africa (as announced on 21 September 2012)
completes the R320 million (£23 million) Lace project financing package.
The Main pipe at the Lace mine (DiamondCorp 74% interest) contains 33.1 million tonnes of
kimberlite with an indicated and inferred resource to a depth of 855m containing
approximately 13.4 million carats at an average grade of 40.1 carats per hundred tonnes. At a
carat value of $160 per carat, the resource has an in-ground value in excess of $2.1 billion.
The deposit will be mined by block cave mining, with three caves planned over the next 25
years on the 47, 67 and 85 levels (at depths of 470m, 670m and 850m respectively). The
kimberlite is open at depth, and also contains a significant bulge between 250m and 360m
depth with the potential to add additional tonnage and diamonds not currently included in the
resource statement.
Development activities February-March 2013
In February, the Company commenced excavation of a new 66,000 bank cubic metre (bcm)
boxcut which will provide the surface entrance to the twin conveyor belt and services declines
for the life of the mine. A total of 23,000 bcm of surface sediments and clay material was
excavated to the end of March and the boxcut is expected to be completed on schedule in the
current quarter.
Underground blasting commenced during March with a vent raise on the 16 level to provide
sufficient interim ventilation for continuous blasting of the twin decline development to the 47
level. The raise development is continuing on schedule and is expected be completed in the
current quarter. Development also commenced on a tipping arrangement on the 24 level to
allow loading of development waste into dump trucks for hauling to surface until such time as
the conveyor belts are installed.
During the period, the Company completed the rebuild of a 9.5 tonne underground loader and
two underground dump trucks in its on-site heavy equipment workshop. Two additional low
profile loaders and three additional underground dump trucks were purchased in February,
completing the fleet requirements for the underground development. These units will be
rebuilt and commissioned during the next two quarters, in line with the planned development
programme.
Essential upgrades are underway on the mine’s 1.2 million tonne per annum dense media
separation plant to allow smooth transition from tailings to kimberlite processing, and relieve
front-end bottlenecks in the re-crush circuit. These modifications are on schedule and plant
re-commissioning is planned during the current quarter, allowing tailings re-treatment
activities to recommence.
Several key operational personnel were recruited during the period, including a mine overseer
with considerable experience in underground kimberlite development and block caving and an
experienced diamond processing plant manager. The Company is not experiencing any
difficulty in securing personnel with the experience and skills required for the mine
development.
The Company has prepared a drilling cubby on the 26 level inside the Main pipe and has
ordered a new skid mounted underground drilling rig which is being shipped from Australia
and is expected to be delivered and commissioned during the next quarter. A total of 2,000m
of underground drilling is then planned in the bulge area as well as the 47 level block cave
area to better define the kimberlite margins and facies distribution.
DiamondCorp's CEO, Paul Loudon said: “We are pleased with the progress achieved with
operations in the first quarter and remain on target to commence diamond production from
tailings re-treatment in the next three months. This will initially be on a one shift basis while
the upgraded processing plant is re-commissioned. We will then have the capacity to ramp up
to three shifts in the second half of the year depending on diamond prices.”
The Company also announces that it will shortly publish an updated corporate presentation
on its website.
Contact details:
DiamondCorp plc
Paul Loudon, Chief Executive
Tel: +44 20 3151 0970
+27 56 212 2930
UK Broker & Nomad
Panmure Gordon (UK) Limited
Dominic Morley/Adam James
Tel: +44 20 7886 2500
Joint Broker
SP Angel Corporate Finance LLP
Ewan Leggat/Laura Littley
Tel: +44 207 598 5368
JSE Sponsor
PSG Capital (Pty) Limited
John-Paul Dicks
Tel: +27 21 887 9602
11 April 2013
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