Image credit: Southstone
The joint venture, it said, contemplates operations ranging from 7,000 to 40,000 tonnes per month.
It has a term of five years commencing from 1 October 2020 to 30 September 2025 and will focus on extracting diamonds from any concessions or mining permits that may be agreed to by both parties within South Africa.
The joint venture denotes a 50%-50% split of all operating costs and all profits or losses
Meanwhile, Gumrock, on behalf of the joint venture, has entered into its first contractors' agreement on portions of Farm Kareepan 177, Farm Goegedacht 197, Farm Kameelpan 148, Farm Leeuwfontein 185, and Farm Kameelboom 150.
The property covers 1,819 hectares and is located in the North West Province of South Africa.
The joint venture has commenced test pitting on the property and to date over 60 test pits ranging from 1 to 5 meters in depth have been completed and mapped.
It is anticipated that test pitting will continue for another 1 to 2 weeks and once an understanding is reached with the location of the favorable gravels, bulk sampling will commence.
Any diamonds recovered during this period will be sold on open tender.
Gumrock had been operating in the alluvial diamond mining business all over South Africa for over 26 years.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
