First Ghaghoo Diamonds Sales In February

According to Gem Diamonds, which holds a 25-year mining licence at Ghaghoo, the mine had produced 4,028 carats by the end of September. It is estimated that Ghaghoo, which was opened in September, has a total carat resource of 20.5 million carats at an average of $162 per carat with a total in situ value of $3.3 billion.

In a statement released last week, chief executive officer Clifford Elphick said they are pleased to have completed the construction of the mine on time and within budget and to have overcome the challenges posed by developing a decline through some 80 metres of sand. He also revealed that Gem Diamonds has drawn down the entire $25 million debt facility for the first phase of the mine’s development. Ghaghoo mine was acquired from Gope Exploration Company in 2007 for $34.1 million.  The mine is the first underground diamond mine in Botswana and lies beneath 80 metres of sand. The Gope deposit had been inactive for a number of years following completion of a feasibility study.