DiamondCorp with 5,700 carats Lace diamonds parcel at Antwerp

DiamondCorp plc, South-African focused diamond company, will put for sale 5,700 carats diamonds, contrary to 7,000 carats scheduled for its first tender to hold on 17 September in Antwerp, Belgium.

The AIM and JSE listed company, owning 74% Lace diamond mine in Free State province, revealed this in an operational update released on 13 September.

The weakness of the parcel is consequential to operational issues at the first mining block on the 310m level that caused a total of 17 days loss of production in August.

“In addition, mining in August included significant tonnage of lower grade kimberlites which ingressed from old workings”, the company said.

DiamondCorp explained this resulted, in August, to a total tonnage of approximately a third of what was planned and recovered grade for the month was diluted from the budgeted 31 carats per hundred tonnes (cpht) to 18 cpht.

Nevertheless, it assures that high quality diamonds have been recovered in August, including four stones larger than 10 carats with a 12.7 carat gem diamond, expected to be sold in the October sale.

The production forecast for the remainder of 2016 has been re-budgeted for 20,000 tonnes in September, 25,000 tonnes in October and 30,000 tonnes in each of November and December.

This has been decided “in light of the ramp-up problems encountered to date, which management considers essentially resolved”, the diamond development and exploration company said.

DiamondCorp has current diamond inventory of 7,003 carats, believes a relatively small sale in October, but expects a monthly sales of up to 9,000 carat base case in the budget by December.