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AIM-listed BlueRock Diamonds has raised an aggregate of £350,000 the majority of which will be used to expedite the development of KV01 (Pipe 1) in South Africa.

The company owns and operates the Kareevlei Diamond Mine in the Kimberley region of South Africa.

BlueRock Diamonds raised £350,000 via the issue of 29,166,667 ordinary shares of 1 pence each in the capital of the company through a placing at a price of 1.2 pence per New Share.

The Pipe 1, which is very similar in geology and size to Pipe 2,  has an inferred grade of 6.3 carats per hundred tons, 40% higher than the inferred grade of Pipe 2 (4.5 carats per hundred tons).

In March 2018, BlueRock Diamonds announced its intention to open mining operations in Pipe 1 and expected to be mining Kimberlite from Pipe 1 during Q3 2018.

BlueRock Diamonds is ahead of schedule in its development of Pipe 1 with 107,000 tons of waste already mined and the first Kimberlite blast expected in the next three to four weeks.

BlueRock Diamonds has now implemented the changes to the crushing circuit envisaged at the time of its last fund raising and is now averaging around 1,350 tons a day, equivalent to over 28,000 tons a month.

The final changes to the crushing plant will be completed in June 2018 and BlueRock Diamonds would expect daily volumes to increase further.

“We are pleased that the changes to our crushing circuit have achieved the desired result but we continue to seek ways of increasing production levels further,” comments CEO Adam Waugh.

“We are excited about beginning to mine K1 with the prospect of a significant increase in grade,” he adds.