LONDON (Alliance News) - BlueRock Diamonds PLC on Tuesday said that average grades from its Kareevlei diamond mine exceeded the company's expectations.
However, shares in the mining company were down 7.6% at 0.27 pence each.
BlueRock said that it has now processed the first level ore from KV1, one of the two diamondiferous kimberlite pipes at Kareevlei in the Kimberley region of South Africa, totalling 20,500 tonnes.
The processing resulted in grades between 3.90 carats per hundred tonnes and 5.11 carats at an average grade of 4.51 carats, exceeding the company's expectations, BlueRock said.
Chief Executive Officer Adam Waugh said: "Our current focus at Kareevlei following our recent fundraise is to materially step-up and de-risk our operations with a view to supplying a regular feed of undiluted, higher grade kimberlite.
"The ore we are recovering from KV1 is very encouraging in that it is a higher grade than we would have expected in this near surface, diluted material. It is pleasing that grades improved during the first half at KV2 and with the early results from KV1 suggests a stronger profile for both pipes going forward."