In the media

DiamondCorp shares rise as begins work at 47 level

24 January 2013


DiamondCorp (LON:DCP) revealed that development has begun on the 47 level block cave at its Lace mine in South Africa.

The move marks the firm's transition from explorer to underground diamond producer.

It also comes after the company has received the first US$3 million (£1.9 million) tranche of loan funds from Laurelton Diamonds, a wholly-owned subsidiary of Tiffany.

The lace deposit is to be mined by block cave mining, with three caves planned over the 25 year life of mine on the 47, 67 and 85 levels.

A number of activities are scheduled over the next four months, including the excavation of the new 66,000 bank cubic metre box cut providing the surface entrance to the twin conveyor belt and men and materials declines for the life of mine (LOM).

Also earmarked is the rebuild of another underground loader and two dump trucks and completion of detailed design drawings for the underground conveyor belts.

Chief executive Paul Loudon told investors he was delighted to be now underway.

"Diamond production from tailings re-treatment will recommence during Q2, initially on one shift while the upgraded processing plant is re-commissioned.

"We will then have the capacity to ramp up to three shifts in the second half of the year if diamond prices strengthen for small goods."

The main pipe at Lace contains 33.1 million tonnes of indicated and inferred kimberlite to a depth 855 metres containing approximately 13.4 million carats in both resource categories at an average grade of 40.1 carats per hundred tonnes.

The firm is fully financed for its development and first diamonds are expected in the third quarter of 2014.

Shares rose over 8% in early deals to stand at 5p each.

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