DiamondCorp plc Interim Results

DiamondCorp plc Interim Results

DiamondCorp plc, a southern Africa focussed diamond mine development and exploration company, releases its interim results for the six month period ended 30 June 2011. The results are unaudited.

HIGHLIGHTS

  • After a year's development activity, the decline at the Lace mine near Kroonstad in the Free State province of South Africa successfully accessed kimberlite at the 26 level for bulk testing (260m below surface).
  • Mining to recover the bulk sample continues in a northeast direction across the pipe and remains in kimberlite with a lower amount of surrounding rock incorporated compared to the kimberlite initially encountered, with the latest two sub-samples of 837 tonnes and 630 tonnes returning recovered grades of 22 carats and 30 carats per hundred tonnes ("cpht") respectively.
  • Ground conditions in this higher grade kimberlite are significantly better than the lower grade 'stony ground' on the western side of the pipe on this level, allowing a better mining advance towards completion of the bulk sample.
  • To date, a total of 14,211 tonnes of kimberlite have been processed for the recovery of 1,837 carats of diamonds.
  • Management are encouraged that the diamond quality remains consistent with the initial parcel which was valued last month by the SA Diamond Exchange at an average of $205 per carat.
  • Aproximately 40% of the diamonds are larger than one-third of a carat, and more than 80% of the diamonds are gem quality. The largest gem diamond recently recovered is 20.54 carats. The Company has also just recovered a 1.01 carat pink diamond.
  • The average recovered grade of all kimberlite processed to date is 13 cpht. This should not be considered indicative of either the whole pipe at this level or the grade of the kimberlite which will be incorporated into the mining plan.
  • In Botswana, core drilling has commenced on kimberlite J-01, a 10ha diamondiferous kimberlite, approximately 10km southeast of De Beers Jwaneng mine.A large diameter drilling rig is currently being mobilised on J-05, 1.5ha diamondiferous kimberlite, approximately 5km southeast of the Jwaneng mine. The current drilling programme aims to better define the contact margins of J-01 and provide an indicative diamond grade of both kimberlite pipes by the end of the year.
  • £3.48 million of new equity has been raised during 2011 to the date of this announcement, allowing the bulk test at the Lace mine to continue and the next phase of exploration in Botswana to commence.
  • Net loss for the six months ended 30 June 2011 was £1,168,179 (30 June 2010 £1,609,114).
  • The loss was determined after charging administrative overhead costs of £663,568 (2010 £653,983) and interest charges of £99,861 (2010 £201,537). Non-cash charges for the period, including depreciation and amortisation, were £491,194 (2010 £611,461) and a foreign exchange gain on the loan payable of £109,076 (2010 £168,960 loss).

Commenting on the results, DiamondCorp CEO Paul Loudon said: "The period under review saw us make significant steps towards our goal of being a long-term diamond producer. Having successfully re-accessed the Lace mine below any of the old workings, we are now determining the grade and carat value at the top of the first mining block and expect to have this information next month. At the same time, we have commenced our mini bulk testing programme on our two diamondiferous kimberlites in Botswana and expect to have these results before the end of 2011."

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