DiamondCorp to start underground production next year

This followed the cessation of surface mining at its Lace mine, owing to the 2009 financial year being dominated by very weak diamond prices. DiamondCorp CEO Paul Loudon said in a statement announcing the company's year-end results, that after Diamondcorp stopped producing diamonds from the old mine tailings at the Lace property, it started focusing on putting into place a number of steps to ease a transition into a fully functioning underground mining operation.

"We remain upbeat about the future sustainability of Lace, and are confident that it will continue to yield real value, especially as we have now seen a recovery in diamond prices and believe in strong market fundamentals going forward."