Lace Mine to Commence Production in 2015

South Africa-based DiamondCorp. reports that underground mine development commenced at its Lace mine in South Africa in the first quarter of the year, and that it remains on schedule and within budget for commencement of production in the first half of 2015. The JSE- and AIM-listed diamond mining and exploration company further reports that its net loss for the six months of the year, ended 30 June 2013, totaled US$3.2 million (R33,125,232), compared to a loss of US$2.3 million (R23.5 million) a year ago.

"The mine is expected to produce up to 500,000 carats of diamonds per annum for over 25 years commencing in the first half of 2015, and heralds the transition of DiamondCorp from explorer to diamond producer," says DiamondCorp CEO Paul Loudon.

The Lace diamond recovery plant, which will process 1.2 million tonnes of tailings per annum, was also refurbished during the six-month period and was successfully commissioned after the end of the period. DiamondCorp says that it has also recommenced the re-treatment of more than 3 million tonnes of tailings that remain on site and that preparation of the marketing and sale of the first 5,000 carats of tailings diamonds is underway.

According to Loudon, the period under review also marks the commencement of a long-term association with Tiffany & Co., which allows the high-end jewelry retailer access to a new supply of diamonds that meets its quality standards and allows for increased traceability from source to end-user.

During the half-year period, the company finalized a US$31.3 million (R320 million) finance package for the 47-level block cave development at the Lace mine when it entered into a term-loan agreement with Laurelton Diamonds, Inc., a wholly owned subsidiary of Tiffany & Co. in January. The Tiffany Loan was drawn down in two equal tranches in January and April.

https://www.diamondintelligence.com/magazine/magazine.aspx?id=12086