Diamond

DiamondCorp plc (LSE:DCP) released an update on its South Africa-based Lace mine, commenting that despite an Association of Mineworkers and Construction Union (AMCU) strike, development into the Upper K4 mining block continues and is “on schedule for commencement of mining operations in H1 2015.”

DiamondCorp plc (LSE:DCP) released an update on its South Africa-based Lace mine, commenting that despite an Association of Mineworkers and Construction Union (AMCU) strike, development into the Upper K4 mining block continues and is “on schedule for commencement of mining operations in H1 2015.”

The release also states:

  • Members of the Association of Mineworkers and Construction Union (AMCU) commenced industrial action at the Lace Mine last week, however development work is continuing in the UK4 block with non-AMCU employees.
  • The AMCU strike is in regard to its demand for the appointment of two full-time salaried shop stewards. However, the Company notes that AMCU already have five appointed shop stewards at the Lace Mine.
  • It is estimated that for every two weeks the strike continues, it will add one week to the development timetable.
  • The strike action has highlighted inefficiencies in work place practices which will be investigated and addressed when the striking workers return as development productivity has improved 87% per person per shift since the strike commenced.
  • Mine development costs to date are averaging R39,135 per metre against a budget of R37,000 per metre.
  • Workplace safety remains a priority for the Company, and the Lace project has been awarded its first 1,000 fatality-free shift trophy by the SA Mine Health and Safety Council.
  • Installation of the underground conveyor belt system is unaffected by the industrial action and is on schedule to be used for mining of the UK4 block.
  • Underground drilling and bulk testing of the UK4 block remains on schedule for the release of an updated resource statement in Q1 2015.
  • Mining of tailings halted during the three months to 30 September 2014 while the surface earth moving fleet completed the construction of an additional water storage dam.
  • Diamond recoveries from tailings for the nine months ended 30 September  totalled 17,981 carats at a recovered grade of 5.94 carats per hundred tonnes (cpht) against a budget of 5.00 cpht.
  • Diamond sales for the nine months to 30 September 2014 totalled 16,505 carats at an average price of US$65 per carat.
  • Beneficiation of the 15.2 carat diamond recovered from the tailings in July has been completed and the two brilliant cut diamonds (5.33 carats and 2.07 carats) are ready for sale.

Click here to read the full DiamondCorp plc (LSE:DCP) press release.

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