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DiamondCorp places Lace operating subsidiary into business rescue

25th November 2016

By: Anine Kilian

Contributing Editor Online

  

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Aim- and AltX-listed DiamondCorp has placed its operating subsidiary Lace Diamond Mines (LDM) into business rescue.

The company said last week it was consulting a business rescue practitioner for LDM, after heavy rainfall on November 11 overwhelmed the Free State-based Lace mine’s pumping systems and flooded the 310 m production level to the hanging wall.

It noted that almost 90 mm of rain had fallen at the mine within an hour, which equated to nearly one-third of the rain the mine usually experiences in a year.

In total, more than 10 000 m3 of water is estimated to have entered the mine through the openpit and access ramps.

A longhole drill rig that was operating at the time of the flood will have to be recovered and the electrics rebuilt – a process that is likely to take 12 weeks to complete. Production at the mine cannot resume until then.

LDM will appoint a business rescue practitioner in due course.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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