| Mon 30 Mar 2009, 8:30 | | DMC - DiamondCorp Plc - Commissioning of primary crushing circuit and Diamond |
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DMC
DMC
DMC - DiamondCorp Plc - Commissioning of primary crushing circuit and Diamond
Sales
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" or "the Company")
COMMISSIONING OF PRIMARY CRUSHING CIRCUIT AND DIAMOND SALES
HIGHLIGHTS
- Commissioning of Phase 2 underground mining crushing circuit at Lace commences
on schedule.
- Kimberlite mined from the Satellite Pipe stockpiled for processing after
commissioning.
- Mining rate for Phase 2 to rise to 3,000 tonnes per day in second half of
2009.
- Main Pipe, high-grade coherent (hypabyssal) kimberlite to be accessed by
mid-year.
- 2,265.79 carats of small gem diamonds recovered from Phase 1 tailings re-
treatment tendered in Johannesburg for R922,807, representing a price of
US$39.51 per carat - up 32% from November.
DiamondCorp plc, the South African diamond mining company, is pleased to
announce that commissioning of the new primary crushing circuit at the Lace
diamond mine in South Africa has commenced on schedule, completing the plant
modifications required for Phase 2 underground mining.
DiamondCorp managing director and CEO Paul Loudon, said: `This achievement marks
an important step in our development as a long-life underground diamond mining
company, and paves the way for processing of kimberlite from the Lace Pipe to
commence again for the first time since 1930.`
Over the next month, approximately 50,000 tonnes of kimberlitic material
remaining from previous mining will be processed to commission the new crushing
circuit. Once the circuit is operating to design specification, the plant will
be purged and a bulk sample of freshly mined kimberlite from the Satellite Pipe
will be processed to determine grade. Immediately after the Satellite Pipe
sample is processed, the plant is scheduled to commence processing potentially
high-grade coherent (hypabyssal) kimberlite which is being accessed by a new
drive off the 4m x 4m decline. Meanwhile, diamonds recovered from the Satellite
Pipe sample will be sold to determine carat value, so that by the second half of
2009 the outstanding grade and carat value questions at Lace under commercial
mining conditions will have been answered.
The initial mining rate from Phase 2 underground development at Lace is 1,000
tonnes per day, with plans to increase this to 3,000 tonnes per day in the
second half of 2009.
Approximately 35 million tonnes of kimberlite have been outlined in the Main
Lace Pipe between the 240m and the 855m level at a predicted average grade of 42
carats per hundred tonnes, containing almost 14 million carats. Up to a further
7 million tonnes of kimberlite exist above the 240m level, but are not taken
into account in the Company`s resource estimates due to the existence of old
workings. Nonetheless, this remnant kimberlite, much of which is expected to be
high-grade coherent kimberlite, is available for mining. A further 3.5 million
tonnes of kimberlite also exists in the Satellite Pipe 30m to the west of the
Main Pipe. The Satellite Pipe was historically a lower diamond grade than the
Main Pipe, and no tonnage from this Pipe has been incorporated into resource
estimates.
Earlier this month, DiamondCorp sold a small parcel of diamonds recovered late
last year from the Phase 1 Lace tailings re-treatment. Some 2,265.79 carats of
gem diamonds were tendered in Johannesburg and sold for R922,807, representing a
price of US$39.51 per carat.
Commenting on the tender price, Paul Loudon said: `We are starting to see some
stability returning to the market for small diamonds as a result of the massive
supply cuts by the major producers. While our March price is down 40% from the
same time last year, it is 32% higher than the price we received last November
for similar tailings goods.
`This result provides us with considerable encouragement that the Phase 2 at
Lace will be profitable at the current diamond prices.`
30 March 2009
London
Sponsor:
Investec Bank Limited
For further information, please contact:
Paul Loudon
DiamondCorp plc
+44 20 7256 2651
Joe Nally/Liz Bowman
Cenkos Securities plc
+44 20 7397 8900
Robert Smith/Tanis Crosby
Investec Bank Limited
+27 11 286 7326
Charmane Russell
Russell & Associates
+27 11 880 3924
Gareth Tredway
Conduit PR
+44 20 7429 6606/+44 7922 923 306
Date: 30/03/2009 08:30:01 Produced by the JSE SENS Department.
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