| Tue 20 Apr 2010, 8:30 | | DMC - DiamondCorp Plc - Mine development and exploration activities restart |
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DMC
DMC
DMC - DiamondCorp Plc - Mine development and exploration activities restart
in South Africa and Botswana
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`)
MINE DEVELOPMENT AND EXPLORATION ACTIVITIES RESTART IN SOUTH AFRICA AND
BOTSWANA
DiamondCorp plc, the African diamond mining and exploration company, is
pleased to announce the recommencement of mine development in South Africa
and exploration activities in Botswana following the successful completion of
its recent GBP7.1 million capital raising.
HIGHLIGHTS
* Decline development recommences at the Lace mine near Kroonstad in the
Free State province of South Africa.
* Planning for a six-hole diamond drilling programme on two further
kimberlite targets in Botswana being finalised.
LACE MINE - FREE STATE PROVINCE, SOUTH AFRICA
Development activities have resumed at the Lace diamond mine, 200km southwest
of Johannesburg, near Kroonstad in the Free State Province of South Africa.
Activities for the remainder of 2010 will focus on the completion of a 4.5m x
4.5m decline to access kimberlite resources below the -240m level, the lowest
level of historical workings at the Lace mine.
The decline is budgeted to cost GBP4 million and be completed in the first
quarter of 2011. This decline will be used for the initial haulage of
kimberlite from below the -240m level for bulk testing purposes and
implementation of the sub-level caving mine plan devised by Snowden Mining
Industry Consultants.
Once the existing 6m x 2.7m vertical shaft is re-equipped during 2011 for
primary ore hoisting, production at Lace is scheduled to increase to 1.2
million tonnes per annum and the decline will then be utilised for men,
materials and ventilation for the remainder of +25-year life of the mine.
Commenting on the recommencement of activities, DiamondCorp managing director
and CEO, Paul Loudon, said: `It was gratifying that our shareholders, new and
old, have provided us with the capital required to access the substantial
kimberlite resources below any of the old working areas at Lace.
`Following one of the most difficult years on record for the diamond sector,
we have been able to keep the 1.2 million tonne per annum recovery plant and
full underground mining fleet in place and in good working order, in
readiness for a rapid restart of activities.
`We have also retained the key individuals on our management team who will
drive the project forward under the leadership of chief operating officer
Steve West, as well as retained the services of our main shaft sinking
contractor. These core technical competencies have been strengthened with the
signing of a contract with Snowden Mining Industry Consultants as leading
technical consultant on the decline development and sub-level caving mine
plan.
`We look forward to accessing the potential 13 million carats in resource at
Lace in early 2011, and building up to a potential production of between
400,000 and 500,000 carats per annum at the same time as the long-term
metrics for the diamond industry continue to improve.`
BOTSWANA
Preparations are being finalised for the commencement of a six-hole diamond
drilling programme in Botswana on two kimberlite targets - J-05 and J-12.
This programme follows the successful delineation of a 10 ha diamondiferous
kimberlite J-01 during the Company`s initial drilling programme in late 2009.
The results of the next drilling programme will determine the priority of
drilling large diameter holes for extraction of mini bulk samples for grade
modeling. Prior to siting of drill holes, ground gravity data on J-05 and J-
12 are being re-interpreted.
DiamondCorp is earning a 77.5 per cent interest in various exploration
licences in Botswana from Geoperspectives (Pty) Limited by funding
exploration activities. The J-05 and J-12 kimberlite targets are located
approximately 5.5km southeast of De Beers Jwaneng mine, the richest diamond
mine in the world measured by value.
London
20 April 2010
AIM Brokers: Cenkos Securities plc, Fairfax I.S. plc
Investment Bank and Sponsor: Investec Bank Limited
DiamondCorp plc, Paul Loudon +44 20 7256 2651
Cenkos Securities plc, Joe Nally/Liz Bowman/Ivonne Cantu +44 20 7397
8900Fairfax I.S. plc, Ewan Leggat +44 207 598 5368
Investec Bank Limited, Robert Smith +27 11 286 7326
Russell & Associates, Charmane Russell/Matthew Ross +27 11 880 3924Ana
Ribeiro/Tim Blythe, Blythe Weigh Communications +44 20 7138 3204
Date: 20/04/2010 08:30:01 Produced by the JSE SENS Department.
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