Member Info for jscapper

I see the two merchants of doom have arrived back. In tandem again. Cannot read what posted as filtered but expect it is the usual rubbish.

Looks like a large buy order has been placed.

That's a relief.
Yep lots of Faint Hearts. Potential here is massive when the financing is sorted for the major ramp up in production. We are almost profitable with dodgy machinery. Very excited to see what the plans are. Now yesterday is out of the way I am sure we will hear soon from management.

Hope I am not the last man standing. LOL

Think it could go as low as 0.01p. I am going for 0.4. Hopefully they will go for massive placing to get all the equipment they need so they can give it a real good go. Speeding up the operation. Not a time to be faint hearted.

Thanks BB. Hope we see you back soon when this capital injection is all sorted and we can see some profit.

You obviously are very negative going forward. Maybe this share is not for you.

I think that was stated on the Q3 update. What we are awaiting is how the money raised will be used to develop the mine to "significantly increase the capacity and efficiency of its operations"

"The investment is expected to materially increase the profitability of Kareevlei"

Meeting Day. The start of the comeback begins here.

The director has now lowered his claim. Seems as though he is trying to get anything.

we have had no negatives from the mining operations reported. So we can assume 18 days of production which should have yielded an income of $288,000. With 5 weekdays left in the month it could rise to over $350,000. Or $1,0000,000 over the quarter.

Agree with all that. Anyone selling is doing so at a loss. Why sell just before a potential take off.

Bought a few more this week @0.55.

I would like to see them running two circuits in tandem. That would see a throughout of double the ore with little extra outlay after the initial plant purchase. But I am greedy.

We must have found a 100ct stone. LOL

I so agree about the management in the early days. They did not have the vision and just seemed to want to get up and running without a real plan in place.

I think we have the Director, who is trying to sue the company, for that mistake. He was finally sussed out and asked to leave.
Ongoing I agree. We now have a professional on board who should be able to put a plan together which will finally take us to the next level.

The product is in the ground we just need to up the through put on a regular basis.

The reason why Bluerock is in the top 10 producers is not because of volume but of quality of diamonds. Hence, we see a much higher value per ct associated with our stones. This value per ct puts Bluerock in the top 10 in the world.
Let’s face it the only reason we are mining here is that reason. The high volume mine may produce a lot of stones but most are destined for the crusher and industrial paste. Only around 10% are of Gem quality. With Bluerock this rises to around 75% by volume and 95% by value.
A little bit of background to this may be found here.
Once rough diamonds are mined, they are sorted into three categories: gem quality diamonds, industrial diamonds, and crushing bort (industrial diamonds of inferior quality that, once crushed, become diamond powder). Most diamonds are destined for industry. Only the highest quality diamonds in terms of color and clarity, of little to no fluorescence, and with few flaws can be used in jewelry, and of the gem quality stones, only the best ones become investment diamonds.
Diamonds are first sorted right after mining and then placed into the CSO (Central Selling Organization). The stones are sorted according to their weight in carats, their color, clarity, and shape (of the rough diamond). Finding rough stones of high quality is extremely difficult. When a diamond is mined, over 250 tons of earth must be moved to find a diamond of gem quality. BLUEROCK every 30 tons). Ten times that must be extracted to find one carat of investment quality rough diamond. It goes without saying then that investment diamonds are incredibly rare. This rarity is what sets them apart from other types of diamonds.
So Bluerock is a top diamond producer in terms of quality and value per ct mined. This also means that for a rough stone, the most important criterion is the shape of the diamond. The best shapes are octahedron and dodecahedron because they offer the most profit.
The price rises exponentially with the size of a diamond. A 1.1 carat stone will be worth much more than a stone slightly less than 1 carat for example.
If you look at Bluerock stones, you will see they fit this criterion of shape and that is why the latest 10ct+ diamond will fetch more than $5000 per ct.

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I also note that in the last update under expansion plans Mike H has also brought a team to the table. The more I read the more I believe this to be a significant move to ramp up production by a large amount.

"Mike Houston and his team who come with experience of mining operations on a much larger scale than Kareevlei have been able to bring in some fresh thinking and in their initial assessment, are encouraged by the potential of the business."

Then this bit really makes me think that this is not going to be a tinkering exercise.

" Technical Review of the operation is taking place and the initial findings highlight that current production targets and further growth are been inhibited by limited flexibility in the mining operation, plant capacity constraints and the unreliability of some of the ageing plant equipment, which impacts on the consistency of production. Accordingly, the Board has taken the decision, subject to funding, to invest in the upscaling of the mining operation, plant and the necessary personnel to significantly increase the capacity and efficiency of its operations. The investment is expected to materially increase the profitability of Kareevlei. The Company will announce its plans in more detail in the forthcoming weeks."

I suppose with the background and experience in the mining industry in this region MH will have contacts. Maybe a cheaper option would be to hire in new plant as they have done with the cone crusher.

Exciting times ahead I believe.

I sense a little bit of frustration in the last Production update. The production plan for the year would have been smashed if the plant had been operating at 100% efficiency. Unfortunately, this has not happened, and we are going to miss the tonnage throughput by around 10%.
We are now in a position where the plant and pipes have been fully explored and whilst the pipes are producing diamonds which demand a price of 60%+ more than anticipated the plant is causing frustration. The management can also see that the grade is steadily increasing as we mine below the top low contaminated zones. Also, we have just started to mine on pipe KV1 which has already thrown up a large stone worth $50000+.
“we look forward to the result from our new pipe KV1 with ENTHUSIASM”
Remember that if we do mine 220,000 tons a year this will put the mine into profitability. Especially as we can anticipate better grades as we move deeper.
However, the frustration of the management is that they know that the mine could be ramped up easily to producing double the capacity, perhaps by utilising a new plant in tandem with the existing. This would also give the flexibility to move the existing plant to test more thoroughly the other pipes they have KV4 &5.
I can also sense a mood at looking to the future and the purchase of a second mine. But this needs to come after ongoing profitability is maintained.
This all comes down to the way forward. Do we struggle on in the hope the current plant can be maintained, or do they go for financing a second plant. If the second what method of financing do they use. I would expect that they will need to spend in the region of £1Million. Maybe this is what the market thinks hence the low sp now.
I am sure we will find out there thinking shortly.