LONDON (Alliance News) - Diamond mining, development and exploration company DiamondCorp PLC said it has reviewed its diamond sales strategy in light of the slower than planned development rate at the Lace Mine in South Africa, opting to wait until it has gathered more diamonds before it begins sales.
The company's reasoning for this decision is that diamond parcels of less than 10,000 carats tend to attract weaker prices than larger volumes.
So far 4,250 carats of diamonds have been recovered at Lace, less than planned due to slower development of the Upper K4 block caused by difficult ground conditions. A valuation from Natural Diamond Corp NV predicts diamond sales should average between USD140 and USD160 per carat at 1.00 millimetre bottom screen size, and between USD160 and USD200 per carat at 1.25 millimetre bottom screen size.
However, the company also said it has reached a "significant milestone" in the construction of Lace Mine ahead of its ramping up of production from the Upper K4 mining block, as it has completed the installation of a 400 tonne per hour underground conveyor belt system at the Mine.
Commissioning of the conveyor belt system is underway, and is expected to be completed via the end of this month.
DiamondCorp shares were down 6.0% at 8.70 pence Tuesday late morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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