DiamondCorp resumes Lace mine development

| Friday April 23, 2010 00:00

DiamondCorp MD and CEO Paul Loudon said that the support from its shareholders meant that it could access the substantial kimberlite resources below the old working areas at its Lace mine near Kroonstad in Free State province.

'The company is looking forward to accessing the potential 13-million carats in resource at Lace in early 2011, and building up to a potential production of between 400 000 ct/y and 500 000 ct/y, at the same time as the long-term metrics for the diamond industry continue to improve,' said Loudon.

DiamondCorp noted that activities for the remainder of 2010 would focus on the completion of a decline to access kimberlite resources below the 240-m level, the lowest level of historical workings at the Lace mine. The decline was budgeted at a cost of £4-million and would be completed in the first quarter of 2011.

DiamondCorp explained that the decline would initially be used for the haulage of kimberlite from below the 240-m level for bulk testing purposes and the implementation of the sublevel caving mine plan devised by consultant company Snowden Mining. 'Once the existing 6-m x 2,7-m vertical shaft is re-equipped during 2011 for primary ore hoisting, production at Lace is scheduled to increase to 1,2-million tons a year and the decline would then be used for men, materials and ventilation for the remainder of the 25-year life of the mine'. Following one of the most difficult years on record for the diamond sector, DiamondCorp has been able to keep the 1,2-million tons a year recovery plant and full underground mining fleet in place and in good working order, in readiness for a rapid restart of activities.

'We have also retained the key individuals on our management team who will drive the project forward under the leadership of Steve West, as well as retained the services of our main shaft sinking contractor.

These core technical competencies have been strengthened with the signing of a contract with Snowden Mining as technical consultant on the decline development and sublevel caving mine plan.' Meanwhile, the company is also planning a six-hole diamond-drilling programme on two further kimberlite targets in Botswana. Loudon noted that the kimberlite targets were located about 5,5 km south-east of De Beers' Jwaneng mine, the richest diamond mine in the world measured by value.

The company said that preparations were being finalised for the start of the drilling programme, following the successful delineation of a 10 ha diamondiferous kimberlite, during the company's initial drilling programme in late 2009.

The results of the next drilling programme would determine the priority of drilling large diameter holes for the extraction of minibulk samples for grade modelling. DiamondCorp is earning a 77,5 percent interest in different exploration licences in Botswana, from Geoperspectives, by funding exploration activities.