Lace mine back on track after two-week suspension

JOHANNESBURG (miningweekly.com) – Commercial mining at the Lace diamond mine has achieved the planned rate of 30 000 t/m from the first block on the 310 m level of the upper K4 (UK4) block after a successful production restart last month, Aim- and JSE-listed DiamondCorp said on Wednesday.

The Free State-based operation will deliver its first full month of commercial production and processing of kimberlite mining in August after a two-week shutdown in July caused by a fall-of-ground accident in a development tunnel.

While the Department of Mineral Resources-ordered suspension was not expected to have a material financial impact, DiamondCorp previously said it would not be able to mine the targeted 30 000 t of ore in July.

However, the Southern African diamond mining, development and exploration company expects to achieve its targeted rates in August and aims to make up the July shortfall by the end of September.

“Management is pleased with the quality of the kimberlite being mined and mining for the month of August is averaging 31 carats per hundred tonnes (cpht), in line with the base case forecast for the first mining block on this level,” DiamondCorp said in an update to shareholders on Wednesday.

Mining kicked off on the block following the mining of 25 103 t from west slot between the 290 m and 310 m levels during the March to July period, which had opened up space for the blasting of trough material.

“Tonnage reconciliation of the slot development indicates that the K4 kimberlite ... was averaging 31 cpht, the K6 kimberlite was averaging 9 cpht and the K8 kimberlite was averaging 3 cpht. Mining is now progressing northward predominantly in K4 kimberlite,” the company said.

DiamondCorp's revised monthly diamond sales is set to start in Antwerp at the end of August, with the 7 000 ct of diamonds recovered from the mining of the slot and from tailings retreatment operations currently undergoing the export process.

Subsequent sales are forecast at between 9 000 ct and 12 000 ct, dependent on monthly grade fluctuations.

Meanwhile, DiamondCorp is searching for an FD in South Africa, while driving the recruitment of new nonexecutive directors in South Africa and the UK to further strengthen its board.