DiamondCorp’s Lace mine put back on track

DIAMONDCORP, the JSE- and London AIM-listed diamond producer, said yesterday that production at its Lace diamond mine, which is its primary asset, was expected to meet its target rate of 30 000 tons this month after a series of setbacks.

This was from the first block on the 310 level of the upper K4 block.

The Free State operation is expected to deliver its first full month of commercial production and processing of Kimberlite, after the production was impacted by a two-week shutdown last month due to a fall of ground accident in a development tunnel.

“Management is pleased with the quality of the kimberlite being mined and mining for the month of August is averaging 31 carats per hundred tons (cpht) in line with the base case forecast for the first mining block on this level”, the company said.

The company said it mined a total of 25 103 tons from the west slot between 290 million and 310 million, which had provided space for mining trough material.

The company said its sales schedule had been revised to commence in Antwerp at the end of the month, with the sale of 7 000 carats. Subsequent sales were forecast to be between 9 000 to 12 000 carats depending on monthly grade fluctuations, DiamondCorp said.

Expenditure on 8 vehicles at the Lace mine after difficulties with its fleet

Paul Loudon, the chief executive of DiamondCorp, said yesterday that the weaker rand would result in a reduction of operating margins as a result of lower receipts in rand for diamonds sold in US dollars.

“However, the full impact cannot be judged until we ascertain what potential beneficial impact the stronger rand might have on diesel costs, which will hopefully minimise the impact,” he said.

Meanwhile, the company is in search of a financial director. Loudon said the post was a newly created position “as part of the strengthening of operational management as we successfully transition from explorer to producer”.

Earlier this year, the company’s operational cashflow was constrained following unplanned capital expenditure. DiamondCorp announced in April that it had experienced operational difficulties with its existing mining fleet while continuing the ramp up of commercial production from underground kimberlite mining at the Lace mine. The company had to purchase eight vehicles, including four underground dump trucks, two underground loaders,and two single boom drill rigs, for $1 million (R14m).

Diamondcorp shares were unchanged yesterday at R1.14.