16th Jul 2014 11:30
LONDON (Alliance News) - Gem Diamonds Ltd Wednesday said an updated 2014 resource and reserve statement for its operations has increased its indicated resources and probable reserves at the Let?eng diamond mine in Lesotho.
The diamond producer said the updated statement reflects a significant increase in the Let?eng Indicated Resource category which has been extended in depth by 100 metres to 350 metres following an infill drilling programme, improved estimation techniques and detailed geological studies.
The company said as a result it now has gross resources totalling 25.5 million carats with an average grade of 6.35 carats per hundred tonnes and the entire 22 year life of mine plan now classified as reserves.
Gem Diamonds said Let?eng's probable reserves have increased in tonnage by 67% and in carat terms by 64%, while the average diamond price for Let?eng probable reserves has increased by 19% to USD2,045 per carat, from a previous average of USD1,715 per carat.
The company said Let?eng's Indicated Resource base has more than doubled in tonnage to a total of 187.1 million tonnes, from a previous total of 80.8 million tonnes, and also more than doubled in carat terms to a total of 3.23 million carats, from a previous total of 1.42 million carats.
It also said that the average diamond price for Ghaghoo Probable Reserve in Botswana has increased 9% in line with market price increases.
Gem Diamonds shares were up 3.9% to 181.84 pence on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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