BlueRock Diamonds: (BRD said quality high-grade kimberlite and a new crushing plant at its own Kareevlei Diamond Mine has driven another record quarter with 7,682 carats produced.
The diamond producer which owns and operates the Kareevlei Diamond Mine in Kimberley of South Africa the year-to-date development tonnage at 997kt is 69% up on the 2020 figure.
Above life of mine strip ratio development, mining is expected to continue through 4Q21 with the objective of providing access to quality kimberlite throughout the forthcoming wet season.
As at the end of September 2021 the Company has built up a 90,000t run of mine inventory.
Meanwhile, a new crushing plant has been operating for some months at Kareevlei with steady improvements made and the upgraded screen has now been fitted and will be brought up to full production ahead of the full processing plant being brought on-line, BlueRock noted.
The Company told investors that Line 1 of 2 is now operational and will reach full production over the next two weeks and that much of Line 2 will be fully commissioned during this period prior to the final transfer and fitting of two pans currently being used in the old plant.
’Once management is confident Line 1 is producing at design capacity, the old plant will be switched off and Line 2 brought into production. It is planned that this will be completed by the end of October with the overall plant now expected to be fully operational in early November.
BlueRock said the Mining, Processing and Engineering teams have been strengthened to meet the demands of the increased volumes and higher tech processing plant and that on-plant safety and operational training has and will continue to be a key focus.
The current guidance for 2021 and 2022 remains unchanged with the Group’s carat production expected to reach 22,000 to 26,000 for 2021 and 40,000 to 43,000 for 2022.
BlueRock Executive Chairman, Mike Houston, said, “With 7,682 carats produced, this has been another record quarter driven by quality high-grade kimberlite being mined and the new crushing plant providing a consistent feed to the old three-pan processing plant. It augurs well for the transition to the new four-pan plant, which will be completed during October.”
The grade and quality of diamonds has been “very encouraging” following the discovery of four high value diamonds in 3Q21 sold for over $1m, including a record 58.6 carat stone.
Houston highlighted to investors that the size of this stone was recorded at more than double the Company’s previous largest stone, supporting the potential of the Kareevlei resource.
He said, “The market for rough diamonds has remained firm during the quarter with strong buyer participation at the South Africa tenders and a growing interest for Kareevlei diamonds as reflected in our average price of $554 per carat, the highest quarterly price achieved.
This average quarterly price has obviously been influenced by the four high value stones recovered, however, the year-to-date average price achieved is an excellent $486 per carat.”
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