DCP.L Regulatory News (DCP)

11 Apr 2007 09:33

Diamondcorp Plc11 April 2007 Diamondcorp Plc ("Diamondcorp" or the "Company") Quarterly update for the period ending 31 March 2007 11 April 2007 Highlights • Successful listing of shares on AIM• Placing of 2.75m shares raises net £2.0m for working capital• Positive outlook for diamond prices and market• Lace mine plant construction on target for Q2 diamond production start up• Refurbishment of Lace shaft commences• AltX listing planned in Johannesburg AIM listing The March quarter of 2007 marked the debut of Diamondcorp plc (trading symbolDCP) as a listed public company, following the admission of the Company's sharesto trading on AIM, a market operated by London Stock Exchange plc, on 1 February2007. The company's market capitalisation was £30.6 million at the listing priceof 90p per share, and an additional £2 million of net cash was raised through ashare placement in conjunction with listing. South African Operations - Lace Diamond Mine (Diamondcorp 74%) During the quarter, construction of a 1.6 million tonne per annum dense mediaseparation plant commenced at the Company's 74% owned Lace diamond project nearKroonstad, 200km southwest of Johannesburg. Plant construction is currentlywithin budget and on target and we expect Phase One diamond production fromtailings re-treatment to begin in mid year. Towards the end of the quarter, the Company commenced the refurbishment of theexisting 360m deep 4.6m x 2.7m shaft at Lace, which will be used to extract abulk sample from 100m below the depth of any previous workings at the mine. Thebulk sample will allow the completion of a bankable feasibility study onrecommencement of underground mining at Lace. Initial refurbishment over thenext two quarters will involve re-equipping the shaft to approximately 40m wheremore competent ground conditions are anticipated, and installation of windinggear to facilitate the deeper shaft refurbishment. Operations - Other The Company continues to assess other diamond production opportunities in SouthAfrica. No activities were undertaken on the Company's exploration propertiesduring the quarter. Corporate During the quarter, the board of Diamondcorp decided to seek a secondary listingof Diamondcorp's shares on the AltX Exchange in Johannesburg. The advantage ofthe AltX listing will be to improve liquidity in the Company's shares andprovide access to South African investment capital which otherwise is precludedfrom trading on a foreign market such as AIM. The board would hope to achievethe AltX listing some time in the second half of 2007, and is currently indiscussion with potential brokers and sponsors. Further updates will beprovided as appropriate. For further information, please contact: Paul Loudon, Managing Director and CEODiamondcorp plc+44 20 7256 2651 Joe Nally/Simon SouthwoodCenkos Securities plc+44 20 7397 8900 Notes to Editors Diamondcorp PLC listed on AIM in February 2007. Phase One mining at Lace willinvolve the treatment of 3.6 million tonnes of diamondiferous tailings over a27-month period. Revenues from the tailings are estimated to be US$6.50 pertonne with operating costs of US$2.50 per tonne. Approximately 360,000 carats ofdiamonds are expected to be recovered from tailings during Phase One. Simultaneously with Phase One, a bankable feasibility study will be completed onrecommencement of underground mining operations at Lace. This Phase Twodevelopment will involve a potential 20-year mine life to extract approximately35 million tonnes of diamondiferous kimberlite in the main Lace pipe between the100m level and 855m level. Scoping studies completed on the project estimate ablock cave mining operation has the potential to produce more than 400,000carats per annum from the Lace kimberlite. This information is provided by RNS The company news service from the London Stock Exchange