DiamondCorp updates on activities at Lace

DiamondCorp announced a project update on activities at the Lace diamond mine in the Free State Province of South Africa. Also, the company noted that its 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.

Production from the first mining block on the 310m underground level at the Lace mine has successfully restarted last month and is proceeding at the planned rate of 30,000 tonnes per month. July production was impacted by a two-week shutdown of operations due to a fall of ground accident in a development tunnel.

August is 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.

Also, the company has installed new rolling stock to ensure production targets could be met, with the older trucks which were taken out of service will now enter a rebuild programme to ensure back up vehicles are always in place in the future.

Diamonds recovered from the mining of the slot and from tailings retreatment operations are currently undergoing the export process to Antwerp for the next diamond sale which is expected to be of approximately 7,000 carats. This 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. Subsequent sales are forecast to be in the order of 9,000-12,000 carats depending on monthly grade fluctuations.

The company is scouting to recruit a Finance Director and member of the Board in South Africa who will oversee the existing finance team. 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.