Name of the Project
Lace diamond mine development project.

Location
Free State, South Africa.

Client
Lace Diamond Mines (LDM), a 74% subsidiary of DiamondCorp.

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

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

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

The Upper K4 (UK4) block is being mined using long hole open stoping, while development of the first block cave on the 50 m level continues.

Net Present Value/Internal Rate of Return
Not stated.

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.

Duration
The production ramp-up from the Upper K4 (UK4) block started in December 2015.

Latest Developments
As mining resumes at the Lace diamond mine, DiamondCorp has said it is considering a merger or the outright sale of the project.

Mining at the diamond mine was halted under a Section 54 notice on October 13, while the third party with which DiamondCorp was in advanced discussions for an urgent £500 000 convertible debt facility withdrew after DiamondCorp had suffered adverse share price movements on the JSE and LSE.

DiamondCorp has accelerated its discussions with alternative third parties and shareholders after failing to secure the much-needed funding to remain a going concern.

However, following initial expressions of interest from credible potential acquirers, DiamondCorp will, in parallel to its discussions to secure additional funding, embark on a wider strategic review to explore additional opportunities.

This will include a corporate transaction, such as a merger with or offer for the group by a third party, or a sale of the group's businesses, the company has highlighted.

“The board, therefore, intends to pursue any such possible alternatives to ensure the best outcome for its shareholders,” the company has noted in an update to shareholders. 

Key Contracts and Suppliers
None stated.

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

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