DiamondCorp Plc (DCP) – Update and Diamond Sales

DiamondCorp Plc (DCP) – Update and Diamond Sales

COMMISSIONING OF PRIMARY CRUSHING CIRCUIT AND DIAMOND SALES

HIGHLIGHTS

  • Commissioning of Phase 2 underground mining crushing circuit at Lace commences on schedule.
  • Kimberlite mined from the Satellite Pipe stockpiled for processing after commissioning.
  • Mining rate for Phase 2 to rise to 3,000 tonnes per day in second half of 2009.
  • Main Pipe, high-grade coherent (hypabyssal) kimberlite to be accessed by mid-year.
  • 2,265.79 carats of small gem diamonds recovered from Phase 1 tailings re-treatment tendered in Johannesburg for R922,807, representing a price of US$39.51 per carat – up 32% from November.


DiamondCorp plc, the South African diamond mining company, is pleased to announce that commissioning of the new primary crushing circuit at the Lace diamond mine in South Africa has commenced on schedule, completing the plant modifications required for Phase 2 underground mining.

DiamondCorp managing director and CEO Paul Loudon, said:
‘This achievement marks an important step in our development as a long-life underground diamond mining company, and paves the way for processing of kimberlite from the Lace Pipe to commence again for the first time since 1930.’


Earlier this month, DiamondCorp sold a small parcel of diamonds recovered late last year from the Phase 1 Lace tailings re-treatment. Some 2,265.79 carats of gem diamonds were tendered in Johannesburg and sold for R922,807, representing a price of US$39.51 per carat.

Commenting on the tender price, Paul Loudon said: ‘We are starting to see some stability returning to the market for small diamonds as a result of the massive supply cuts by the major producers. While our March price is down 40% from the same time last year, it is 32% higher than the price we received last November for similar tailings goods.
‘This result provides us with considerable encouragement that the Phase 2 at Lace will be profitable at the current diamond prices.’

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