31st Jul 2014 11:39
LONDON (Alliance News) - Diamondcorp PLC Thursday said that tests at its UK4 block at the Lace diamond mine in South Africa have confirmed its potential for commercial ramp-up ahead of schedule.
The Southern Africa focused diamond development and exploration company said scoping and mine design studies on the block have been completed and confirm the potential for commercial ramp-up of underground mining operations.
Diamondcorp said the studies now recommend bottom up longhole open stopping as the mining method and estimate that steady state production of 30,000 tonnes per month can be achieved by the second-half of 2015.
The company said the commercial ramp-up plans can now start in the first-half of 2015, six months ahead of schedule.
Diamondcorp said that the accelerated mining development process will be funded from within its existing project finance facilities.
Roughly 55,000 tonnes of kimberlite is planned to be mined as part of the UK4 development and the recovered diamonds will be sold, allowing for an upgraded resource statement in the first quarter 2015.
To achieve mine production from the UK4 block, 1,149 metres of waste development and 880 metres of kimberlite development is planned over the next 12 months at a budgeted cost of ZAR75 million.
The company added that overall mine development costs to date are averaging ZAR37,051 per metre, which is 5% over its planned budget due to increased tyre wear in the final uphill sections of the decline development and higher diesel, repairs and maintenance costs as waste hauling distances increase.
Diamondcorp said it believes it can reverse the cost increase and has instituted operational efficiency projects in mining, maintenance and procurement to improve productivity and reduce costs. Until then, it has upped the development budget to ZAR37,000 per metre.
The company also said that during the quarter ended June 30 diamond recoveries totalled 6,102 carats at a recovered grade of 6.32 carats per hundred tonnes, while in July the company recovered its largest gem diamond ever from tailings, a 15.2 carat clean white diamond.
Diamondcorp shares were down 6.1% to 7.28 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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