21st Sep 2005 08:56
Dwyka Diamonds Limited21 September 2005 Dwyka Diamonds Limited Diamond processing and exploration drilling commences at Newlands, SA Highlights • Treatment of ore recommences at Newlands Diamond Mine • Design capacity of 5,000 tonnes per month expected to be reached by the end of September 2005 • Testing of additional blows on Newlands property to take place in Q4 2005 to secure additional tonnages of ore Dwyka Diamonds Limited ("Dwyka" or "the Company"), the AIM and ASX listeddiamond producer and project developer, today announced the recommencement ofore processing at its recently acquired Newlands Mine in South Africa.Since acquiring the Newlands Mine, and two other hard rock diamond projects inAugust 2005, Dwyka has made excellent progress in optimising productionpotential. From recommencement of operations earlier this week the plant isplanned to be up to its design capacity of 5,000 tonnes per month by the end ofSeptember 2005. The improved liberation from finer crushing in the upgradedplant should result in significantly improved diamond recovery grades. At fullproduction Dwyka anticipates processing 5,000 tonnes per month to produce about14,500 carats per annum, with an annual value of about US$1.6 million.Whilst the plant was off-line, a total of 7,000 tonnes of underground ore wasstockpiled which the plant will treat during the ramp up of mining operations. Newlands exploration The Newlands property has significant potential for additional ore reserves froman exploration program that will commence during Q4 2005. Dwyka's currentproduction is from "Blow 2", one of only five known diamondiferous kimberliteson the property. It is Dwyka's intent to drill "Blow 4" in the coming months asthis appears to be the largest kimberlite on the Newlands property, and isamenable to immediate open-pit mining.In addition, several completely untested fissures linking the blows exist on theproperty, and Dwyka intends to map and test these fissures in the coming year.The fissures could add significant extra tonnage to the Newlands resource. Commenting today Melissa Sturgess, Executive Chairman of Dwyka Diamonds, said:"Following Dwyka's acquisition of Newlands and two other hard rock diamond minesin August 2005 we have worked hard to recommence production at the projectfollowing extensive plant restructuring. We were able to achieve significantimprovements in recovered grades at Nooitgedacht, our alluvial diamond mine inSouth Africa, and we are expecting the same results at Newlands. Production atNewlands gives Dwyka its third revenue stream, which combined with our otherprojects which are due to come on line in the coming months, puts us in a strongposition for the 4th quarter, 2005. For further information please contact: In Australia: In United Kingdom: Melissa Sturgess Laurence Read/ Leesa PetersDwyka Diamonds Limited Conduit PR (+618) 9324 2955 (+44) 20 7618 8707/ (+44) 7979 955 923 Or visit: http://www.dwykadiamonds.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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