RE: JS CAPPER28 Sep 2018 14:23
A diamond pipe is made up of different layers with the top being a low-quality cover which when removed exposes the top most kimberlite. However, that is not the full story. This top kimberlite is not the best quality and as such most fruitful. Hence the lower than reported in the Z star for KV2, around 3ctht and not the 4.5ctht. However, we have now reached the sweet spot and have been achieving 6ctht as reported in the latest RNS.
this 6ctht is higher than the 4.5ctht but the estimate from the Z Star report is an average from 10 Meters down to 100 Meters tested. These higher values will not be found over the hole of the pipe. We must remember a pipe is a natural phenomenon so there will be inconsistencies but over the volume of mined kimberlite 4.5ct will be the average.
As the pipe was in profit at the lower figure then as the diamonds increase in number one should be able to extrapolate that a good profit can be achieved. Shall we say as a low end estimate 30% of present M'Cap each Quarter.
The old management did not have a real vision whilst I feel the new team have. Why did they not start KV! the higher value pipe. We may never know.
The interesting results will be from KV1. This again is a new pipe, so we must realize that initial diamond production will not reach 6.5ctht as stated in the Z Star report. But should start at a level around the 3-4ctht.
We keep hearing about” the big one", The mine was developed on a report which gave the figures of KV1 6.5 ctht and KV2 4.5ctht. Any large stone are therefore a bonus. But let us not forget GEMD. They did not find the larger stones until the pipe was deemed to be mature in depth. We are not a that level yet.
Let us see what the next blasting from KV2 brings as we begin to develop below the 20Meter level consistently.
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