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DiamondCorp Expects Lace Mine Rough Sale in 3Q

Jun 24, 2013 5:48 AM   By Deena Taylor
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RAPAPORT... DiamondCorp expects an initial sale from its tailings out of the Lace diamond mine in South Africa to take place during September and October as development work remains on track.

The company reported that treatment plant modifications have been completed on schedule and within budget. Commissioning of the plant is currently underway and tailings re-treatment is slated to commence next week. DiamondCorp noted that tailings re-treatment will operate on a single shift until the market price for Lace tailings diamonds is established following that first sale in September.  Tailings re-treatment economics should be assisted by the recent weakness in the South African rand and the reported improvement in diamond prices, according to the company.

Following the sale, the company will assess whether to increase to two or three shifts before the end of 2013, depending on the prices obtained. The company has 3.5 million tonnes of tailings available for processing.

DiamondCorp also reported that underground development activities at Lace's 47- level block cave development accelerated during the period from April to June with the  ramp-up on schedule and under budget. Underground development will move to three shift continuous operations in July as a result of increased staff on site.

The company also received its new underground diamond drill rig and aims to drill 2,000 meters of underground core before the end of the year. The drilling will be completed from inside the kimberlite to improve and define the margins of the bulge as well as the 47-level block cave area.

DiamondCorp will reassess the value of its shares at its AGM scheduled to take place on July 2, 2013. The interests of existing shareholders (both in terms of their economic interest and voting rights) will not be diluted by the capital re-organization and neither will it impact on the number of ordinary shares in issue, according to the company.  Project debt facilities are estimated at $31.5 million (ZAR 320 million), which is sufficient to fully finance Lace's 47 level block cave development. 
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Tags: Deena Taylor, DiamondCorp, Lace Mine
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