Name and Location
Cullinan C-Cut expansion programme, Gauteng, South Africa.

Client
Petra Diamonds (74%), Thembinkosi Mining Investments (14%) and the Itumeleng Petra Diamonds Employee Share Trust (12%).

Project Description
The Cullinan mine contains a world-class resource base of 199.6-million carats, including 17-million carats in tailings. Petra plans to capitalise on this by undertaking an expansion programme to increase production to 2.2-million carats a year by the 2019 financial year, comprising two-million carats run-of-mine (RoM) and 200 000 ct of tailings.

This expansion plan, known as C-Cut Phase 1, will establish a new block cave on the western side of the orebody, in the upper portion of the major C-Cut resource, which is estimated to contain 133-million carats and will also involve a large tailings retreatment operation.

The development plan will enable the tonnage profile to gradually switch from the old mining areas, heavily diluted with waste rock, to the new mining areas, thereby providing access to undiluted ore. As a result the RoM grade is expected to increase in future years from about 26 carats per hundred tonnes (cpht) to more than 50 cpht by the 2019 financial year, when the C-Cut Phase block cave is in full production.

Petra’s current mine plan envisions a life-of-mine to 2030, but the major residual resources at the mine indicate that the actual life-of-mine could be more than 50 years.

Value
Not stated.

Duration
The plan is to increase production from 800 000 ct in the 2014 financial year 2.2-million carats by the 2019 financial year.

Latest Developments
Petra Diamonds has reported that the shaft deepening and underground development at Cullinan continues to progress in line with expectations, with the C-Cut Phase 1 waste development yielding 2 361 m, raiseboring delivering 389 m and kimberlite development delivering 967 m in its interim results for the six months to December 31, 2014.

Meanwhile, Petra continues to deliver on its group targets, with production forecast to grow further from 3.3-million carats in the 2014 financial year to about 3.3-million carats in the 2015 financial year, and to an estimated five-million carats in the 2019 financial year.

The continued focus on operational performance, combined with its robust financial position, places the company in a strong position to capitalise on the positive medium- to long-term outlook for the diamond industry.

Key Contracts and Suppliers
Murray & Roberts Cementation (deepening of Shaft 1 and Shaft 3, as well as associated infrastructure and planned level development) and ABB (upgrade of the Koepe winder and ropes).

On Budget and on Time?
The project is on time and within budget.

Contact Details for Project Information
Petra Diamonds, tel +27 11 702 6900, fax +27 11 706 3071 or email info@petradiamonds.com.
Murray & Roberts Cementation, tel +27 11 201 5000.
ABB (South Africa), tel +27 10 202 5000 or fax +27 11 579 8000.