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Letšeng's Reserves +64% to 2M Carats
Jul 16, 2014 3:55 AM
By Deena Taylor
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RAPAPORT... Gem Diamonds reported a significant increase in reserves and resources at its 70 percent owned Letšeng diamond mine in Lesotho.
In an updated resource and reserve statement, the company reported that probable reserves at Letšeng increased by 64 percent to 2.26 million carats, from 1.38 million carats assumed previously. The average price per carat of reserves grew 19 percent to $2,045 per carat, reflecting increased market pricing and improved recovery of large, high-value, type IIa diamonds. By tonnage, reserves at Letšeng rose by 67 percent to 131.9 million tonnes of ore.
The company explained that the increase in reserves stemmed from extending the depth from the current pit bottom of 100 meters to new depths of approximately 350 meters below the current mine pits, on both the satellite and main pipe ore bodies. This increase in the indicated resource base is a result of improved confidence in the resource through infill drilling programs, improved estimation techniques and detailed geological studies, the company stated.
Gem Diamonds further explained that the pit extensions have resulted in a significant increase in Letšeng's reserves, with the entire 22 year life-of-mine plan now classified as reserve. Additionally, Letšeng's indicated resources increased in carat terms by 127 percent to a total of 3.23 million carats, compared with 1.42 million carats. By tonnage, the indicated resources grew by 132 percent to a total of 187.1 million tonnes,
Gem Diamonds also operates the Ghaghoo mine in Botswana. The company noted that the average diamond price for Ghaghoo's probable reserve rose 9 percent to $267 per carat, in line with market price increases.
The company's gross resources, which includes reserves, totaled 25.54 million carats at an average price of $601 per carat, with an average grade of 6.35 carats per hundred tonnes.
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Tags:
carats, Deena Taylor, diamonds, Gem Diamonds, Ghaghoo, Letšeng
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