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DiamondCorp

  • BY: Andrew Hore |
  • POSTED: 24/06/2009 |

DiamondCorp says that average diamond prices from the Lace mine in South Africa have exceeded expectations in $ terms.

The diamond miner sold just over 1,500 carats of gem diamonds for an average price of $79 per carat. While that was higher than expected the Rand average price was slightly lower than forecast. Earlier sales averaged $47 per carat. Non-gem diamonds were sold for $3.74 per carat.

Prices are anticipated to remain around current levels but no significant recovery is expected.

DiamondCorp managed to locate plans for mining at the Lace mine between 1901 and 1931. They show that more diamonds were mined than thought above a depth of 240m. This will limit mining in the near future and thereby restrict cash flow. Sampling will be completed at the end of July and this will indicate the full effect on cash flow.

Once mining goes beyond the 240m depth -likely to be the second half of 2010 - then mining rates will increase. Management also believes that resource estimates could increase.

DiamondCorp has singed a joint venture diamond exploration agreement with Geoperspectives. DiamondCorp can earn a 77.5% interest in three diamond licences in Botswana.

At 30.5p a share, DiamondCorp is valued at 11.3m.

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