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Kimberley Diamonds Updates Diamond Resources

Sep 30, 2014 3:56 AM   By Deena Taylor
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RAPAPORT... Kimberley Diamonds reported an increase in reserves and resources at its diamond mines. The company owns the Ellendale and Smoke Creek projects in Australia and the Lerala diamond mine in Botswana.

In an updated resource and reserve statement, the company reported that its gross mineral resources as of June 30, more than tripled to 11.426 million carats compared with 3.765 million carats one year ago. The increase was mainly due to the company's acquisition of Lerala and Smoke Creek  in early 2014.

However, the average price per carat of the company's resources fell 62 percent to $95. By tonnage, the company's reserves declined by 14 percent to 82.1 million tonnes of ore.

Kimberley Diamonds further explained that reserves at its Ellendale mine declined 47 percent to 2.173 million carats due to mining depletion at the E9 pipe and re-assessment of prospects for eventual economic extraction at its E4 pipe.

The Lerala mine, which was acquired in February, contains 3.253 million carats valued at an average price of $74 per carat, while Smoke Creek contains an estimated 6 million carats at an average price of $30 per carat.

Separately, the company denied rumors that it was looking to dispose of its Lerala mine, saying "such rumors are not true" and that it has no intention of selling. The company is working toward reopening Lerala in 2015. The mine's previous owners, Mantle Diamonds placed it on care and maintenance in 2012. 
Tags: Deena Taylor, diamonds, E9, Ellendale, Kimberley Diamonds, Lerala, Smoke Creek
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