HomeDiamonds & GemstonesDiamondCorp to resume operations in SA and Botswana

DiamondCorp to resume operations in SA and Botswana

Lace diamond mine
London, England — MININGREVIEW.COM — 19 August 2010 – Southern African-focused diamond mine development and exploration company DiamondCorp has reported a widening of its first-half loss, but has raised enough equity capital to allow further development of the Lace diamond mine in South Africa and a resumption of exploration in Botswana.

“It was gratifying that after one of the toughest years on record experienced in the diamond industry, our shareholders, old and new, provided us with the development capital required to access the considerable diamond resource at Lace which exists below the 240m level,” said DiamondCorp CEO Paul Loudon in a statement released here.
The company said its decline was progressing within budget and was currently on schedule to access the 240m level by the end of 2010, slightly ahead of schedule. The decline was budgeted to cost £4 million (R45 million).
The vertical shaft was planned to be re-equipped during 2011 for primary ore hoisting, which would provide capacity for production from Lace to increase to 1.2Mtpa. The decline would then be used for men, materials and ventilation for the remainder of the +25-year life of the mine.

“We have also commenced drilling on our exciting kimberlite prospects south of Debswana’s massive Jwaneng mine in Botswana,” said Loudon, adding that the company would report in detail the results of this exploration programme in the months ahead.

DiamondCorp reported that its loss in the six months to end June 2010 had increased to £1.6 million (R18.1 million) from £974 476 (R11 million) previously.

The statement added that an operating loss of £1.3 million (R14.75 million) had been reported against the £1.2 million (R13.6 million) posted for the first half of last year, and headline earnings per share had come in at £0.029 versus £0.024.

The consolidated cash balance was £4.1 million (R46.5 million).