Last checked at 23 Sep 2008 07:00
| 23 September 2008 | AIM: PDL |
Petra Diamonds Limited
Updated Group Resources worth US$27.3 billion
Petra Diamonds ("Petra" or "the Group"), the international diamond mining group, today announces an updated statement of the Group's reserves and resources. The statement has been prepared in accordance with the guidelines of the JORC code and is in respect of the Cullinan, Koffiefontein, Williamson, Kimberley Underground, Helam, Sedibeng and Star mines. The acquisitions by Petra of majority interests in the Williamson and Kimberley Underground mines are expected to complete by end October 2008 and end December 2008 respectively.
Highlights
Updated carat base of 265 million carats gross (121 million carats attributable) (October 2007: 11.38 million carats gross; 9.33 million carats attributable), a transformational increase for the Group
In-situ value of US$27.3 billion gross (US$13.7 billion attributable)
Increase due to the inclusion of:
Cullinan, the world's second largest indicated diamond resource by in-situ value at 208 million carats;
Williamson, a major resource of over 40 million carats; and
Kimberley Underground, at over 6 million carats.
| SUMMARY OF RESERVES AND RESOURCES BY STATUS - COMBINED OPERATIONS - SEPTEMBER 2008 | ||||||
| Category | Gross | Net attributable | ||||
| Tonnes (millions) | Grade (cpht) | Contained Diamonds (mcts) | Tonnes (millions) | Grade (cpht*) | Contained Diamonds (mcts) | |
| Ore/Diamond Reserves |
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| Proven | 19.819 | 7.51 | 1.488 | 14.195 | 8.83 | 1.254 |
| Probable | 39.794 | 30.43 | 12.111 | 23.192 | 26.44 | 6.132 |
| Total Diamond Reserves | 59.613 | 22.81 | 13.599 | 37.386 | 19.76 | 7.386 |
| Diamond Resources |
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| Measured | - | - | - | - | - | - |
| Indicated | 366.760 | 51.66 | 189.460 | 177.173 | 40.98 | 72.606 |
| Inferred | 1,207.838 | 5.16 | 62.283 | 838.358 | 4.86 | 40.762 |
| Total Diamond Resources | 1,574.598 | 15.99 | 251.742 | 1,015.531 | 11.16 | 113.368 |
| Total Carat Base (million) | 265.341 | 120.754 | ||||
| Estimated Value (US$ million) | $27,293 | $13,674 | ||||
Notes: "cpht" - carats per hundred tonnes; "mcts" - millions of carats
Johan Dippenaar, Petra's Chief Executive Officer, commented: "Our resource base of 265 million carats establishes Petra as one of the world's largest independent diamond groups. We shall continue to deliver growth to our shareholders by bringing this world-class resource base to account."
The resource statement, in compliance with the AIM Guidance for Mining Companies, is split out below as to the individual mines.
| SUMMARY OF RESERVES AND RESOURCES BY STATUS - CULLINAN | |||||||
| Category | Gross | Net attributable | Operator | ||||
| Tonnes (millions) | Grade (cpht) | Contained Diamonds (mcts) | Tonnes (millions) | Grade (cpht) | Contained Diamonds (mcts) | ||
| Ore/Diamond Reserves |
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| Proven | - | - | - | - | - | - | Cullinan Diamond Mine (Pty) Ltd |
| Probable | 16.188 | 52.12 | 8.437 | 5.990 | 52.12 | 3.122 | |
| Total Diamond Reserves | 16.188 | 52.12 | 8.437 | 5.990 | 52.12 | 3.122 | |
| Diamond Resources |
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| Measured |
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| Cullinan Diamond Mine (Pty) Ltd |
| Indicated | 255.826 | 71.42 | 182.706 | 94.656 | 71.42 | 67.601 | |
| Inferred | 165.369 | 10.15 | 16.780 | 61.186 | 10.15 | 6.208 | |
| Total Diamond Resources | 421.194 | 47.36 | 199.486 | 155.842 | 47.36 | 73.810 | |
| Total Carat Base (million) | 207.923 | 76.931 | |||||
| Estimated Value (US$ million) | $17,874 | $6,613 | |||||
Notes:
Value calculated on US$90 / run of mine carat and US$40 / tailings carat.
Cullinan reserves and resources have been taken from the De Beers October 2006 internal scorecard classification (considered to be a conservative classification) and depleted by mining conducted by De Beers from October 2006 to July 2008. Reserves and resources have been re-classified in compliance with JORC 2004.
Optical Sorting Plant tailings are not included in the reserves and resources statement as they have not been systematically sampled and thus do not have inferred status and are regarded as a deposit by Petra. However, a deposit of 1.16 million tonnes exists which has historically been processed and which Petra is continuing to process, and during our first month of operation achieved a grade in excess of 70cpht.
Petra currently has a 37% interest in Cullinan. Petra can increase its interest in Cullinan to 60% based on the performance of the mine and the payment of pre-agreed option payments
| SUMMARY OF RESERVES AND RESOURCES BY STATUS - KOFFIEFONTEIN | |||||||
| Category | Gross | Net attributable | Operator | ||||
| Tonnes (millions) | Grade (cpht) | Contained Diamonds (mcts) | Tonnes (millions) | Grade (cpht) | Contained Diamonds (mcts) | ||
| Ore/Diamond Reserves |
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| Proven | 18.385 | 3.69 | 0.678 | 12.869 | 3.69 | 0.475 | Koffiefontein JV |
| Probable | 18.482 | 8.76 | 1.618 | 12.938 | 8.76 | 1.133 | |
| Total Diamond Reserves | 36.867 | 6.23 | 2.297 | 25.807 | 6.23 | 1.608 | |
| Diamond Resources |
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| Measured | - | - | - | - | - | - | Koffiefontein JV |
| Indicated | 12.518 | 7.82 | 0.978 | 8.763 | 7.82 | 0.685 | |
| Inferred | 90.486 | 3.04 | 2.753 | 63.340 | 3.04 | 1.927 | |
| Total Diamond Resources | 103.004 | 3.62 | 3.731 | 72.103 | 3.62 | 2.612 | |
| Total Carat Base (million) | 6.028 | 4.219 | |||||
| Estimated Value (US$ million) | $2,162 | $1,513 | |||||
Note:
Value calculated on US$450 / run of mine carat and US$70 / tailings carat.
Petra has a 70% interest in Koffiefontein.
| SUMMARY OF RESERVES AND RESOURCES BY STATUS - KIMBERLEY UNDERGROUND MINES | |||||||
| Category | Gross | Net attributable | Operator | ||||
| Tonnes (millions) | Grade (cpht) | Contained Diamonds (mcts) | Tonnes (millions) | Grade (cpht) | Contained Diamonds (mcts) | ||
| Ore/Diamond Reserves |
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| Proven | - | - | - | - | - | - | Kimberley Mines JV |
| Probable | 3.073 | 19.96 | 0.614 | 2.274 | 19.96 | 0.454 | |
| Total Diamond Reserves | 3.073 | 19.96 | 0.614 | 2.274 | 19.96 | 0.454 | |
| Diamond Resources |
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| Measured | - | - | - | - | - | - |
|
| Indicated | 5.794 | 20.00 | 1.159 | 4.287 | 20.00 | 0.858 | Kimberley Mines JV |
| Inferred | 48.113 | 9.68 | 4.655 | 35.604 | 9.68 | 3.445 | |
| Total Diamond Resources | 53.907 | 10.79 | 5.814 | 39.891 | 10.79 | 4.302 | |
| Total Carat Base (million) | 6.428 | 4.756 | |||||
| Estimated Value (US$ million) | $995 | $736 | |||||
Notes:
Value calculated on US$160 / run of mine carat.
Kimberley Underground reserves and resources have been taken from the De Beers October 2006 internal scorecard classification (considered to be a conservative classification). No processing has taken place since that date. Reserves and resources have been re-classified in compliance with JORC 2004.
The acquisition of Kimberley Underground is expected to complete by the end of 2008, at which point Petra will hold a 74% interest.
| SUMMARY OF RESERVES AND RESOURCES BY STATUS - WILLIAMSON | |||||||
| Category | Gross | Net attributable | Operator | ||||
| Tonnes (millions) | Grade (cpht) | Contained Diamonds (mcts) | Tonnes (millions) | Grade (cpht) | Contained Diamonds (mcts) | ||
| Ore/Diamond Reserves |
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| Proven | - | - | - | - | - | - | Williamson Diamonds Limited |
| Probable | - | - | - | - | - | - | |
| Total Diamond Reserves | - | - | - | - | - | - | |
| Diamond Resources |
| ||||||
| Measured | - | - | - | - | - | - | Williamson Diamonds Limited |
| Indicated | 92.623 | 4.98 | 4.616 | 69.467 | 4.98 | 3.462 | |
| Inferred | 902.417 | 3.94 | 35.546 | 676.813 | 3.94 | 26.660 | |
| Total Diamond Resources | 995.040 | 4.04 | 40.162 | 746.280 | 4.04 | 30.122 | |
| Total Carat Base (million) | 40.162 | 30.122 | |||||
| Estimated Value (US$ million) | $5,623 | $4,217 | |||||
Notes:
Value calculated on US$140 / run of mine carat.
Williamson resources have been taken from the De Beers December 2007 internal scorecard classification (considered to be a conservative classification). Resources have been classified in compliance with the JORC code.
The acquisition of Williamson is expected to complete in October 2008, at which point Petra will hold a 75% interest.
| SUMMARY OF RESERVES AND RESOURCES BY STATUS - FISSURE MINES COMBINED (HELAM, SEDIBENG, STAR) | |||||||
| Category | Gross | Net attributable | Operator | ||||
| Tonnes (millions) | Grade (cpht) | Contained Diamonds (mcts) | Tonnes (millions) | Grade (cpht) | Contained Diamonds (mcts) | ||
| Ore/Diamond Reserves |
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| Proven | 1.434 | 56.49 | 0.810 | 1.325 | 58.79 | 0.779 | Petra / Sedibeng Mine JV |
| Probable | 2.050 | 70.31 | 1.441 | 1.990 | 71.54 | 1.424 | |
| Total Diamond Reserves | 3.485 | 64.62 | 2.252 | 3.316 | 66.44 | 2.203 | |
| Diamond Resources |
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| Measured | - | - | - | - | - | - | Petra / Sedibeng Mine JV |
| Indicated | - | - | - | - | - | - | |
| Inferred | 1.453 | 175.42 | 2.549 | 1.415 | 178.22 | 2.522 | |
| Total Diamond Resources | 1.453 | 175.42 | 2.549 | 1.415 | 178.22 | 2.522 | |
| Total Carat Base (million) | 4.801 | 4.725 | |||||
| Estimated Value (US$ million ) | $640 | $595 | |||||
Notes:
Value calculated on US$420 / carat for Sedibeng, US$220 / carat for Star and US$85 / carat for Helam.
Fissure mines; grades and fissure widths are extrapolated downwards below working levels from detailed historical records collected over many decades of mining, with confirmation of fissure continuity by diamond drilling where necessary.
Petra has a 74.5% interest in Sedibeng and a 100% interest in both Helam and Star.
For further information, please contact:
| Cathy Malins | Telephone: +44 (0) 20 7318 0452 |
| Petra Diamonds, London | cathym@petradiamonds.com |
| Adrian Hadden | Telephone: +44 (0) 20 7523 8350 |
| Collins Stewart, London | ahadden@collins-stewart.com |
Media relations:
| Julian Walker | Telephone: +44 (0) 20 7357 9477 |
| Hogarth Partnership, London | pdl@hogarthpr.co.uk |
| Charmane Russell | Telephone: +27 (0) 11 880 3924 |
| Russell and Associates, Johannesburg | charmane@rair.co.za |
Ends
Notes
1. The information in this update that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Jim Davidson, Pr. Sci Nat (reg No 400031/06), who is a Member of the Geological Society of South Africa, a 'Recognised Overseas Professional Organisation' ('ROPO'). Jim Davidson is the Qualified Person for the purposes of the AIM Guidance Note on Mining, Oil and Gas Companies dated March 2006. Jim Davidson is a full-time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify. Jim Davidson has given his written consent to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
2. "Operator" is name of the company that operates the asset; "Gross" are 100% of the reserves and/or resources attributable to the licence whilst "Net attributable" are those attributable to the AIM company; "cpht" is carats per one hundred tonnes.
3. Fissures - measured resources are classified as one level below the base of the deepest workings, indicated resources as two levels below the base of the measured resources, and inferred resources as three levels below the base of the indicated resources. Measured and indicated resources have been converted to proven and probable reserves by applying historically derived waste rock dilution and in-stope loss factors to in-situ kimberlite tonnages and grades. Resources converted to reserves have been subtracted from the overall resource figure and reported separately. Due to in-stope loss factors of 10% for shrinkage mining (carried out at Helam and Sedibeng), reserve carats will be less than resource carats on conversion and this adjustment has been included in the statements above.
Glossary
"mineral resources" - a concentration or occurrence of material of intrinsic economic interest in or on the earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction.
"inferred mineral resource" - that part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geologically and/or through analysis of grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.
"indicated mineral resource" - that part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered though appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
"measured mineral resource" - that portion of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and/or grade continuity.
"ore reserves" - those portions of mineral resources which, after the application of all mining factors, result in an estimated tonnage and grade which, in the opinion of the competent person making the estimates, can be the basis of a viable project, after taking account of all relevant modifying factors.
"probable ore reserve" - the economically mineable part of an indicated, and in some circumstances measured mineral resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified.
"proven ore reserve" - the economically mineable part of a measured mineral resource. It includes diluting material and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified.
About Petra Diamonds
Petra Diamonds is an international diamond mining group with a balanced portfolio combining major producing mines and world class exploration assets. With operations in South Africa, Angola, Botswana, Sierra Leone and Tanzania (following completion of the acquisition of the Williamson Diamond Mine in October 2008), Petra's objective is to continue to grow production, developing its stature as a leading diamond producer in all of the countries in which it operates.
In South Africa, Petra currently has five producing mines - Cullinan, Koffiefontein, Helam, Sedibeng and Star. The Group has also reached agreement to acquire two further assets from De Beers - the Kimberley Underground mines, also in South Africa, and the Williamson mine in Tanzania. The group is on track to increase its annual production from 200,000 carats in the year to June 2008 to over 1 million carats in the year to June 2009.
Complementing the Group's production is an exploration and development portfolio spread across some of the world's most prospective diamond fields. In Angola, Petra is developing the world class Alto Cuilo and neighbouring Luangue projects. In Botswana, Petra has established the largest diamond exploration landholding in the country, where it believes that modern exploration techniques will hold the key to the discovery of new, major kimberlites. In Sierra Leone, Petra is developing a fissure operation with its JV partner Stellar Diamonds and test work to date indicates the potential for economic operations.
The Petra group now employs some 4,000 people and over the last 10 years the Company has developed a range of social initiatives which continue to make a meaningful impact upon the lives of employees and surrounding communities. Petra's focus remains upon sustainable development, via educational programmes and skills transfer, to ensure a broad based approach with a lasting legacy, and all operations are carried out with the highest regard for the environment according to best practice.
Petra will only commit to working in countries which are members of the Kimberley Process and shareholders can remain assured that Petra's diamonds will only ever be 100% conflict free.
For further information, please visit www.petradiamonds.com.