JOHANNESBURG (miningweekly.com) – Diamond miner BlueRock Diamonds has entered into an agreement with Koedonza Olives to mine the 1.5 ha Jubilee kimberlite pipe, in the Windsorton area, 40 km north of Kimberley.
To evaluate the commercial viability of Jubilee, the Aim-listed company will receive a bulk sample of up to 2 500 t within six months of the granting of a mining permit, which Koedonza is applying for and which is expected within the next few weeks.
The kimberlite ore will be hauled to the processing plant at BlueRock’s Kareevlei mine for processing, to ascertain the likely grade and quality of any diamonds coming from Jubilee.
Should the results of the bulk sample be positive, BlueRock has an option to extend the terms of the agreement for the duration of the mining permit which could be up to five years and any extension thereof.
BlueRock will be responsible for all costs relating to the bulk sampling and any future mining, with revenue from diamond sales shared between BlueRock and Koedonza on a 90:10 basis.
Further, BlueRock could retain 100% of diamond sales revenue during the bulk sampling phase until the point at which bulk sampling and processing costs have been recovered.
In 2015, some limited mining took place by alluvial miners at Jubilee, during which a 24 ct stone was recovered. This mining was carried out on a small surface area of the pipe and to a depth of less than 5 m.
Meanwhile, BlueRock reports that it sold a 206 ct parcel at tender in Johannesburg, achieving $438/ct, with the highest value of $3 750/ct for a 9.5 ct diamond.