Diamondcorp ahead of schedule

South African miner Diamondcorp says developing underground operations at its Lace Mine is 14 months ahead of schedule.

In a market update on the first half of 2008, the AIM-quoted company reveals it recovered 27,103 carats from the tailings left by previous workings of the mine, averaging 6.1 carats per hundred tonnes of rock and with 70 per cent gem quality. Diamondcorp sold 19,214 carats by tender in Johannesburg for $1.16 million (£580,000), at an average price of $61 a carat.

Chief executive officer Paul Loudon says the company now expects first recoveries from the satellite diamond pipe at Lace by September. Phase Two of underground mining at Lace is likely to involve spending £6.5 million over two years to produce 4,000 tonnes of kimberlite rock each day, to be funded partly from a recent £1.7 million share placing and partly from debt.

Floated last year at 90p, Diamondcorp shares now trade at 72.5p, valuing the company at £27 million. In today’s stock market climate, they clearly have risk but still look a better speculation than many.

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