8th Mar 2006 08:51
Dwyka Diamonds Limited08 March 2006 Dwyka Diamonds Limited ("Dwyka" or "the Company") Sale of diamonds Highlights • Sale of 3,283 carats of production for USD295,000• First sale of diamonds from the recently re-opened Blaauwbosch mine• Sale to Diamdel, De Beers rough diamond trading subsidiary Dwyka Diamonds Limited ("Dwyka" or "the Company"), the AIM and ASX listed diamond developer and producer today announces the sale of 3,283 carats of diamonds for USD295,000 to Diamdel, the De Beers rough diamond trading subsidiary. The diamonds sold were from three of Dwyka's mines in the Kimberly area of South Africa. The sales included the first parcel of Dwyka's production from diamond tailings at the Blaauwbosch Mine. 1,206 carats were sold for USD61,343, an average value of USD51 per carat, which exceeded company expectations. Break down of sales by project: Nooitgedacht (Alluvial mine) 364 carats sold for USD69,141 (average value: USD189/ carat) Newlands (Undergrounds production) 1,712 carats sold for USD164,734 (average value: USD96/carat) Blaauwbosch (Tailings production) 1,206 carats sold for USD61,343 (average value: USD51/carat) Nooitgedacht is the most advanced of the Dwyka mines currently underdevelopment. Optimisation of the processing plant has seen a significant rise inthroughput. Selective mining has also resulted in improved product quality andlarger stone sizes being recovered including a 42 carat stone which was sold forUSD361,018 in Q4 of last year. The Newlands mine recommenced production in September of 2005 and sold its firstparcel of diamonds the following month for USD32,930. In addition to the excellent prices achieved from Blaauwbosch tailings, Dwyka ispushing ahead with underground development. First underground production isscheduled to come on stream in the June quarter of 2006 to complement existingtailings production. Commenting today Melissa Sturgess, Executive Chairman, said: "Dwyka is now fullyrealising its strategy to establish a portfolio of assets underpinned by strongrevenue streams. We now have three diamond producing assets in operation and Ilook forward to brining our De Beers tailings JV on-line shortly. Explorationcontinues apace following recent positive results from our 70% owned Boseleproject in South Africa, bulk sampling is underway at our De Beers JV inTanzania and continued progress at our BHP JV in India. Including our successfulindustrial division Dwyka now has four revenue producing assets in its portfolio." For further information please contact: In Australia: In United Kingdom:Adrian Griffin, Melissa Sturgess Laurence Read/ Leesa PetersDwyka Diamonds Limited Conduit PR+61 (0) 8 9324 2955 +44 (0) 20 7429 6605/ +44 (0) 7812 159 885 Or visit: http://www.dwykadiamonds.com/ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Nyota Minerals