In the media

DiamondCorp targets JSE listing by year-end, backs off Sonop

02 November 2007

Source: Mineweekly

Author: Creamer Media Reporter

Aim-listed diamond junior Diamond- Corp is proceeding with plans to list on the main board of the JSE, and still hopes to join the bourse by the end of the year.

The gem-miner said in August that it planned to launch a secondary listing on the JSE by this month, but said in an emailed statement last week that it was still working with sponsor Investec Bank to progress the listing.

The company also said that it had agreed to terminate an option agreement to buy South Africa's Sonop Mining, although it would "continue to evaluate the Sonop assets as part of its ongoing programme to expand its diamond production base in South Africa".

DiamondCorp said earlier this year that it had signed an option agreement with Sonop to buy the company for $45-million in cash, and 7,5-million shares of 3p each, which added up to a total value of about $90-million.

Sonop has assets along the Vaal river and along the middle Orange river, between Douglas and Prieska.

TAILINGS SUCCESS

DiamondCorp recently commissioned a 1,6-million-ton dense-media separation plant at its 74%-owned Lace mine, near Kroonstad, 200 km south-west of Johannesburg, and the firm said that, by the end of September, it had recovered 9 290 ct of diamonds during the commissioning process.

Some 120 399 t of tailings was treated at a recovered grade of 7,72 ct for every hundred tons during commissioning, which was completed on October 1.

Of the diamonds recovered during commissioning, a total of 5 412 ct had been sold at tender, for $261 105, DiamondCorp said.

"More than 80% of the diamonds recovered to date are gem quality, and include a high proportion of clear whites, a significant proportion of fancy yellows, as well as more than 300 small pinks and vivid purples, and one small intense blue," MD Paul Loudon says.

An accelerated development plan for Lace has begun, which aims to introduce pipe material into the mine plan by the third quarter of 2008.

A decline shaft will be sunk into the unmined portion of the Lace satellite pipe, which has only been mined by openpit methodology to a depth of 50 m.

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Mineweb
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