Wrap Text
Lace Diamond Mine operational update
DiamondCorp plc
AIM share code: DCP & JSE share code: DMC
ISIN: GB00B183ZC46
(Incorporated in England and Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)
("DiamondCorp", “the Group” or "the Company")
LACE DIAMOND MINE OPERATIONAL UPDATE
DiamondCorp, the Southern African diamond mining, development and exploration company,
is pleased to provide a project update on activities at the Lace diamond mine in the Free
State Province of South Africa.
Highlights
Production from the first mining block on the 310m underground level at the Lace mine
successfully restarted last month and is proceeding at the planned rate of 30,000 tonnes
per month.
August represents the first month of commercial production and processing of kimberlite
mined for the month to date is averaging 31 carats per hundred tonnes (cpht), in line with
the base case forecast for this first mining block.
The new rolling stock acquired to ensure production targets could be met is providing
excellent availability.
The quality of the diamonds recovered from fresh kimberlite continues to be impressive,
with a good proportion of clean sawable stones in all size fractions, including type IIa
diamonds.
The Company’s diamond sales schedule has been revised to commence in Antwerp at
the end of August and then continue monthly for the rest of the year.
A search is underway to recruit a Finance Director and new non-executive directors who
can strengthen the Company’s Board and deliver improved operational and financial
control now that the Company is in commercial production.
Commercial mining has now achieved a rate of 30,000 tonnes per month from the first block
on the 310m level of the Upper K4 Block (UK4 Block) at the Lace mine. August is considered
the first month of commercial mining after July production was impacted by a two-week
shutdown of operations due to a fall of ground accident in a development tunnel, as
previously announced.
Management is pleased with quality of the kimberlite being mined and mining for the month of
August is averaging 31 cpht, in line with the base case forecast for the first mining block on
this level.
In the period from March to July, the Company mined a total of 25,103 tonnes from the west
slot between the 290m and 310m levels which provided the open space for blasting of trough
material which is now being mined. The west slot is positioned on the contact between the
high grade K4 kimberlite and lower grade K8 and K6 material, which for the most part, will not
be exploited by the mining method being utilized for the UK4 Block. Approximately 40% of the
tonnes mined during slot development was low grade material which had to be moved ahead
of commercial mining commencing in the high grade block. Total diamonds recovered from
the slot material was 4,601 carats.
Tonnage reconciliation of the slot development indicates that the K4 kimberlite on the contact
was averaging 31 cpht, the K6 kimberlite was averaging 9 cpht and the K8 kimberlite was
averaging 3 cpht. Mining is now progressing northward predominantly in K4 kimberlite.
Mapping of the development tunnels for the trough, and the mined slot area shows that the
K4 unit is less diluted with waste rock moving away from the contact and grades should
continue to improve as mining of the current block progresses.
The new rolling stock acquired earlier in the year to ensure production targets could be met is
providing excellent availability and the older trucks which have been taken out of service will
now enter a rebuild programme to ensure back up vehicles are always in place in the future.
The quality of the diamonds recovered continues to be impressive, with a good proportion of
clean sawable stones in all size fractions, including type IIa diamonds.
Diamonds recovered from the mining of the slot and diamonds recovered from tailings
retreatment operations are currently undergoing the export process to Antwerp for the next
diamond sale at the end of August. The sale is expected to be of approximately 7,000 carats,
which is slightly lower in total numbers than forecast due to sale of parcels in Johannesburg
during the export process in June (which comprised 1,838 carats of run-of-mine kimberlite
diamonds and 1,679 carats of tailings diamonds) and the shutdown of operations in July due
to the fall of ground accident. Subsequent sales are forecast to be in the order of 9,000-
12,000 carats depending on monthly grade fluctuations.
A search is underway to recruit a Finance Director and member of the Board in South Africa
who will oversee the existing finance team. Now that the Company is in commercial
production, DiamondCorp is also looking to further strengthen the Board through the
recruitment of new non-executive directors in each of South Africa and the UK.
Contact details:
DiamondCorp plc
Paul Loudon, Chief Executive
Tel: +27 56 216 1300
Euan Worthington, Chairman
Tel: +44 7753 862 097
UK Broker & Nomad
Panmure Gordon (UK) Limited
Adam James/Atholl Tweedie
Tel: +44 20 7886 2500
JSE Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Megan Young
Tel: +27 11 445 8068
SA Corporate Advisor
Qinisele Resources Proprietary Limited
Dennis Tucker/Andrew Brady
Tel: +27 11 883 6358
The information communicated in this announcement is inside information for the purposes of
Article 7 of Market Abuse Regulation 596/2014 ("MAR").
10 August 2018
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 10/08/2016 07:06:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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