DCP.L Share News (DCP)

LONDON (Alliance News) - DiamondCorp PLC Thursday said mining operations are set to start at the Lace diamond mine in South Africa four months ahead of schedule as it continues to progress the development.

The diamond miner focused on South Africa said mining operations at the Lace diamond mine are on track to begin in the second half of 2015, four months ahead of the company's original target as development work continues on the Upper K4 block.

DiamondCorp is expecting to get the results from the Upper K4 area soon, which will lead to a final resource statement being received by the end of the second quarter it said.

A total of 3,321 kilometres of underground core drilling in 21 holes has produced 2.6 million tonnes of high grade kimberlite, which is more than 2.0 million tonnes more than the geological model suggested, said the company.

The company said it discovered a 19.83 carat clear white gem diamond, the largest it has recovered so far, whilst processing the K6 kimberlite.

The underground conveyor system is 91% fabricated and on site, 51% installed, and on schedule for commissioning ahead of the mining ramp-up. Mine development costs are currently running above budget, it said.

The USD7 million royalty financing facility with Acrux Resources is nearing completion and the company said it is likely to draw down the first amount as soon as it is finalised.

DiamondCorp shares were down 2.4% to 9.52 pence per share on Thursday morning.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

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