London, England — MINING REVIEW.COM — 07 August 2008 – Pangea Diamondfields plc (PDF) – a mid-tier diamond producer and exploration company with a portfolio of eight projects in Central and Southern Africa – expects to meet its stated objective of having three projects cash flow-positive and in commercial scale operation by the end of 2009.
CEO Brett Thompson emphasised that, despite rising input costs for fuel and other consumables, overall costs for exploration activities had been maintained in line with budgets.
“We are pleased to be able to report this development progress at all of our projects. The transition to pilot mining at Dimbi in the Central African Republic (CAF) is progressing well, and the first export and sale from the Longatshimo River project in the Democratic Republic of Congo (DRC) will take place in Q3 of 2008,” he revealed.
“The improved production levels in Angola are a solid step in the right direction,” Thompson continued, “and we are optimistic that the expansion to commercial scale operations will occur by the end of 2008. We are seeing promising results from our South African projects – good grades and an exceptional first sale result from our Bakerville project, and bulk sampling has now confirmed the presence of diamonds at Harts River-Pampierstad,” he added.
An operational review published here said approximately 6 400 carats had been successfully exported from Dimbi, and the next sale was planned for late August 2008. Conversion of the current exploration permit to a mining licence was well advanced, but it was not possible to determine how long the CAR authorities would take to consider the application. As a consequence current forecasts had been adjusted for full-scale production not earlier than mid 2009.
The review also revealed that the first export and sale from the Longatshimo River project would take place in Q3 of 2008. Bulk sampling here had started to accelerate in both the Kamonia and Kapopo licence areas, and by the end of June over 1 000 carats had been recovered. Export of the current production from both projects was planned at a tender scheduled to take place in late August.
Total attributable resources for all PDF projects have decreased from 10.8 million carats in August 2006 to 8.6 million carats as at 31 March 2008. The major factors influencing this overall reduction were the termination of the Lumuanza project in Angola (0.8 million attributable carats), coupled with a reduction in grade in the DRC projects (2.2 million attributable carats).
The review pointed out that resource volumes had increased in all current project areas in line with the ongoing exploration activities, and the attributable resource base was expected increase to 8.9 million carats, including 0.31 million carats in the indicated category.
“Efforts have been focused on increasing resource confidence and quality rather than volume,” it concluded