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Paragon Diamonds Narrows Fiscal Loss
May 25, 2014 6:06 AM
By Deena Taylor
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RAPAPORT... Paragon Diamonds narrowed its fiscal year loss to $2.2 million (GBP 1.3 million) in 2013, compared with $8.6 million (GBP 5.1 million) one year earlier. The explorer recorded no revenue for the year, but said it is close to securing funds to commence initial production at its open-pit Lemphane kimberlite in Lesotho in late 2014.
Initial mining at Lemphane is projected to generate annual revenue of $8 million over a two-year period and will see the company target 20,000 carats with an estimated average value of $750 per carat.
During 2013, one diamond recovered during initial bulk sampling at Lemphane was valued at $2,400 per carat. Lemphane is located in a cluster of five major kimberlite pipes in a region of Lesotho known for producing large and exceptionally high-quality diamonds.
"Even though this stone was part of a limited parcel of 300 carats, it indicated the presence of large high-value diamonds. It was even more encouraging that this initial small parcel of diamonds has features in common with nearby kimberlites of Mothae and Letšeng, such as a coarse diamond size frequency and type IIa diamonds," said Paragon's executive chairman, Martin Doyle.
Doyle noted that the company is in advanced stages of negotiations to secure funds for initial stage mining at Lemphane and the group will update the market in the near future.
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Tags:
Deena Taylor, diamonds, Lemphane, Lesotho, Paragon Diamonds
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