Gem Diamonds Discovers Another Large Diamond at Letšeng

The diamond, discovered on June 22, is the third diamond weighing more than 100 carats to be recovered from Letšeng since May.

Gem Diamonds announced at the end of last month the sale of a 164-carat D color Type IIa diamond for $9 million into a partnership arrangement, and the recovery of a 103-carat yellow diamond, sold at tender.

Letšeng’s exports this month total $22 million, with an average price per carat of $2,087 compared to an average price per carat of $1,599 per carat in the first three tenders of goods from the mine this year.

In other developments, the company said four new secondary and tertiary crushers have been successfully installed on schedule and on budget, and are now operational at Letšeng. Mining has commenced as planned in the higher value, higher grade Satellite pipe.

It is anticipated that this will result in improved revenues as the build-up of Satellite pipe ore contribution to overall production ramps up for the remainder of 2013.

Meanwhile, the development of the Ghaghoo mine in Botswana is continuing to progress, with the sand portion of the access decline successfully completed and the recovery plant is 90 percent complete.

Tunneling has commenced through the more competent basalt rock, and Phase 1 will see the first kimberlite ore accessed in mid-2014. This will result in planned production of 230,000 carats per annum at a mining rate of 720 000 tonnes per annum.

Gem Diamonds CEO, Clifford Elphick said: “Letšeng has recovered a third rough diamond over 100 carats within the last two months. Mining will steadily increase in the higher value and higher grade Satellite pipe in H2 of this year, and it is anticipated that revenues will therefore show a resulting increase.”