Johannesburg, South Africa — 17 May 2013 – TSX and JSE-listed Rockwell Diamonds Incorporated “’ focused on creating a growth-oriented, mid-tier diamond mining and development company “’ says its Wouterspan mine in South Africa has indicated positive economics “’ sufficient to take the project to the detailed design stage.
A company statement released here says the economic model estimates a capital cost of US$42 million to re-open the mine, which has a net present value for the base case of US$91.71 million.
The Wouterspan alluvial diamond property “’ which is on the banks of the Orange River in the Middle Orange River region of the Northern Cape in South Africa “’ would yield a project payback period of 2.3 years from the start of construction, or approximately 1.3 years from commencement of production. The operation is expected to employ 300 people.
A key element of Rockwell’s strategy is to process 500,000m3 per month of high quality gravels from the Middle Orange River region. “Our Saxendrift and Saxendrift Hill complex will collectively process 250,000m3 per month,” says Rockwell CEO James Campbell. “We recently announced our plans to bring the Niewejaarskraal mine into production at a processing capacity of 115,000m3. Now we are considering taking the Wouterspan property to the next step. This will enable us to achieve our full strategy in the Middle Orange,” he adds.