DiamondCorp Gives Update on Lace Mine Operations

Treatment plant modifications have been completed on schedule and within budget. Plant commissioning underway with tailings retreatment to re-commence next week. Initial sale of tailings diamonds is planned for September/October.

Its underground development activities ramp-up is on schedule and under budget, and its recruitment of experienced underground personnel is on schedule, allowing underground development to move to three shift continuous operations next month.

The new boxcut excavation was around 75 percent completed at the end of May and costs are significantly under budget.

The owner-operated mining fleet is providing more than 90 percent availability. Two additional underground loaders and a 20-tonne dump truck rebuilt in-house on schedule and within budget during the current quarter.

The company has also completed the required modifications to the 1.2 million tonne per annum Lace processing plant to allow seamless transition from treatment of the tailings to underground kimberlite. Plant commissioning is underway and re-treatment of tailings will commence next week. The modifications were completed on schedule and within budget.

Tailings re-treatment will operate initially on a single shift until the market price for the Lace tailings diamonds is established with the first sale anticipated in September. If prices achieved result in sufficiently attractive operating margins, the company will look to increase to two shifts and potentially three shift operations before year end as approximately 3.5 million tonnes of tailings remain on site and available for processing.

"Tailings retreatment economics should be assisted by the recent weakness in the South African Rand and the reported improvement in diamond prices," the firm said.