14th Oct 2013 07:31
LONDON (Alliance News) - Paragon Diamonds Ltd Monday said it has been awarded a mining licence by the Lesotho Ministry of Mines for its Lemphane Kimberlite project in Lesotho.
It said it is still in talks about the Lesotho government's participation in the project and royalty levels, but said it expects both to be in line with other licenses awarded in the region.
The approved programme of mining is premised on a two-year Stage 1 mine plan of 540,000 tonnes a year, followed by an eight-year Stage 2 mine plan of 3,000,000 tonnes a year for an initial open-pit life of ten years.
Paragon said it will shortly give details on the Stage 1 plan.
"I look forward to the prospect of reporting on the recovery of exceptional gem diamonds for which the region is famous, such as the 12.47 carat blue diamond recovered from Letseng and
recently sold by Gem Diamonds for a record USD7.5 million or $603,047 per carat," Paragon Chairman Martin Doyle said in a statement.
Paragon Diamonds shares were up 12.3% at 6.74 pence early Monday, one of the biggest rises on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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