Rockwell focuses on operational turnaround following recent management changes

Rockwell Diamonds (TSX: RDI) (JSE: RDI) has announced its quarterly production and sales update for three months ending on August 31, 2016. Volumes, grades, carat sales, values of sales, and the average price per carat all declined.
According to the press release:

• Notable recoveries – thirty-three +20-carat stones were recovered at RHC (22), Saxendrift (10) and WPC (1), with two stones over 100-cts: 157.99ct and 129.65ct, both from RHC.

• Rough diamond inventory – 700 carats were carried over into the third quarter of fiscal 2017 (including royalty contract goods).

• Safety – at August 31, 2016, the Company had achieved 174,558 lost time injury free hours (“LTIFH”) at its MOR operations

A five-year mining agreement has been concluded with C-Rock Mining (Proprietary) Limited (“CML”) for the provision of contract mining services at Rockwell’s Wouterspan mine with a similar agreement to follow for Remhoogte. 
 
Rockwell has been granted a prospecting right over the Daniel alluvial deposit, a diamondiferous fluvial-alluvial gravel deposit associated with the adjacent Finsch diamond mine in the Northern Cape Province. Limited modelling based on percussion drilling by the previous operator has identified extensive diamondiferous gravels within the palaeo-channel structure.

Rockwell’s operations at Saxendrift have been suspended as anticipated following recent economic performance. Saxendrift has been the mainstay of Rockwell’s production since its acquisition from Trans Hex. Commercial options on how to deal with this asset consisting of plant and remaining resource are currently being evaluated, royalty miners and relocation of fixed infrastructure being some of these.

Click here for the full press release.