11 Nov 2014 07:00
PARAGON DIAMONDS LTD - Appointment of AdviserPARAGON DIAMONDS LTD - Appointment of Adviser
PR Newswire
London, November 10
Paragon Diamonds Limited / Index: AIM / Epic: PRG / Sector: Resources 11 November 2014 Paragon Diamonds Limited ("Paragon Diamonds"or the "Company") Appointment of Adviser Paragon Diamonds Limited, the AIM quoted diamond development and productioncompany in Lesotho, Africa, advises that it has appointed Northland CapitalPartners Limited as Nominated Adviser to the Company with immediate effect. **ENDS** For further information please visit www.paragondiamonds.com or contact: Philip Falzon Sant Paragon Diamonds Limited +44 (0) 20 7099 1940Manduca Simon Retter Paragon Diamonds Limited +44 (0) 20 7099 1940 Edward Hutton/Gerry Northland Capital Partners +44 (0)20 7382 1100Beaney Limited John Howes/Charles Northland Capital Partners +44 (0) 20 7382 1100Laughton Limited Felicity Edwards St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Notes Paragon Diamonds has a pipeline of projects in Lesotho, Botswana and Zambia,the most advanced of which is its Lemphane Kimberlite Pipe Project in Lesotho,located close to the world class Letšeng mine, Lesotho's largest diamond mine.Lemphane is the last known world-class sized kimberlite to be developed inLesotho. Among the stones recovered in the Company's 2013 bulk samplingprogramme were several large high value stones of up 8.9 carats in size andindividual diamond values in excess of US$2,400/ct have been achieved,demonstrating the potential for Lemphane to hold large and valuable diamonds.The first of a two stage production programme is currently expected to commencelate 2014 (subject to financing) which will further define the resource atLemphane. As increased tonnages of kimberlite are processed the proportion oflarger diamonds recovered will improve, increasing the average value ofdiamonds recovered at the project, as was the case at Letšeng. Stage 1 production will cover a two year period during which approximately 1 Mtof kimberlite will be mined and processed out of the currently estimated 48.6Mtof kimberlite (to 350m depth) at the site, using a 75 tonne per hour processingplant. The Company is targeting 20,000 carats during Stage 1 production with anestimated minimum value of US$930 per carat that is expected to generaterevenues in excess of US$9m per annum. Cash flow will be reinvested to furtherdevelop Lemphane and complete a bankable feasibility study, a 3D geologicalmodel and a substantial inferred resource ahead of commencing the Stage 2production phase. Stage 2 will see production ramped up to 3Mt/year with peakproduction expected to hit 65,000 carats per year of high value diamonds. It is the intention of the Company to become a fully integrated diamond companymaximizing the margins gained from being exposed from the mining to selling ofdiamonds.