Recent AIM arrival DiamonEx expects to start producing gems from Botswana’s Lerala kimberlite project in three months.

Dan O’Neill, the Australian managing director of the Brisbane-based company, says DiamonEx expects wholly owned Lerala, once a De Beers prospect, to produce diamonds at the rate of 30,000 carats a year. DiamonEx, which is also listed in Australia and Botswana, puts the capital cost of the project at some £12 million and has so far arranged a significant proportion of that through a Botswana-listed convertible and £4 million from the European Investment Bank.

According to O’Neill, New York jeweller Tiffany sought the marketing rights for Lerala stones and offered to help in other ways, but no deal could be agreed. DiamonEx estimates a 3.87 million carat resource at Lerala, worth £110 million gross at $60 a carat, and is also exploring kimberlite prospects in the US at Sloan in Colorado and in Wyoming.

At 15.5p, as against January’s high and low of 20p and 14p, DiamonEx shares have speculatve appeal.

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DiamonEx	AIM	£4.47m	2.50p	0.00p
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