Name and Location
Lace diamond mine development project, Free State, South Africa.

Client
DiamondCorp.

Project Description
The 1.2-million-ton-a-year Lace mine is expected to produce more than 500 000 ct/y of diamonds at peak production.

The Main pipe at the Lace mine contains 33.1-million tons of kimberlite, indicated and inferred to a depth of 855 m, containing an estimated 13.4-million carats in both resource categories at an average grade of 40.1 carats per hundred tons.

The resource has an in-ground value of more than $2-billion at $160/ct.

The deposit will be mined through block-cave mining, with three caves planned over the 25-year life-of-mine (LoM) on the 47, 67 and 85 levels, at depths of 470 m, 670 m and 850 m respectively.

The kimberlite is open at depth and also contains a significant bulge between 250 m and 360 m, with the potential to add additional tonnage and diamonds not currently included in the resource statement.

Value
The total development cost of the project, including working capital and a 15% contingency on capital and development costs, is estimated at R384-million.

The peak funding requirement of R286-million is expected in April 2015, when blasting of the slot drive and doming start to deliver significant tonnage of kimberlite.

The costs of establishing the block cave thereafter are offset by revenues from the sale of diamonds recovered from kimberlite mined during development.

Duration
DiamondCorp plans to recommission the Lace plant before the middle of 2013, with kimberlite tailings, after which it would test the market with the sale of recovered diamonds. DiamondCorp will assess if it is worth increasing tailings production ahead of underground kimberlite mining in 2014, depending on the prices received.

Latest Developments
DiamondCorp is making progress with the development of the 47-level block-cave development at its Lace mine.

The miner finalised a £23-million finance package for the 47-level block-cave development in April.

In the coming year, the company plans to excavate 66 500 m3 of surface material to establish a boxcut and a new life-of-mine access ramp and portal into the underground workings. Simultaneously it will drill and blast a 50 m vent raise to provide sufficient temporary ventilation to advance underground development to 470 m.

It will further refurbish the 1.2-million-ton-a-year Lace processing plant and make essential modifications to allow for the transition from tailings treatment to the treatment of underground kimberlite in 2014.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
DiamondCorp, tel +44 20 3151 0970, fax +44 20 3151 0971 or email info@diamondcorp.plc.uk.