Photo by: Reuters
JOHANNESBURG (miningweekly.com) – ASX-listed Kimberley Diamonds plans to bring the idled Lerala diamond mine, in Botswana, back into production this year, after the group concluded the 100% acquisition of gem miner Mantle Diamonds.
Kimberley Diamonds said on Monday that it would target yearly output of 400 000 ct/y from Lerala over the next six years, with the current 230 t/h processing and recovery plant upgraded to reach 1.9-million tonnes a year of ore throughput.
The mine, which was placed on care and maintenance in July 2012, comprises five diamondiferous kimberlite pipes totalling 6.66 ha.
Lerala, in conjunction with the reopening of the Ellendale E4 mine, would boost the company’s potential marketable production of gem and near-gem quality diamonds from the current production of 120 000 ct/y to more than 700 000 ct/y.
The mining and exploration company would reopen the Ellendale E4 mine, which was idled in February 2009 by then owner Gem Diamonds, to produce 200 000 ct in the 2015 calendar year, based on an annualised treatment rate of 2.8-million tonnes a year, explained Kimberley executive chairperson Alex Alexander.
The flagship Ellendale diamond mine, in Western Australia, currently produced 120 000 ct/y of diamonds from E9.
“… and with E4 back in the pipeline, [it is] anticipated [that] at least twice the current level of rough production [will be delivered],” he said.
The acquisition of Mantle, which marked Kimberley Diamond’s entry into Botswana, also provided a platform for further “excellent” near-term development and acquisition opportunities, with a second acquisition of a near-term production diamond-mining asset planned within a year.
Kimberley Diamonds had also recently acquired the Argyle Smoke Creek alluvial diamond project, based in the Kimberley region of Western Australia, Alexander noted.
“Rough diamond prices are on the rise and Kimberley is well positioned to capitalise on this. This acquisition is in line with our growth strategy of becoming a diversified diamond producer and we will continue to look for further acquisition opportunities,” he commented.