Image credit: BlueRock Diamonds
BlueRock Diamonds PLC has recovered two gem-quality exceptional stones of 14.8 carats and 8.7 carats. Commenting on this, BlueRock Executive Chairman, Mike Houston, said, “I am very pleased to announce the recovery of two high-value gem-quality diamonds from the Kareevlei Diamond Mine and the sale of the 12.8-carat diamond, the recovery of which was announced on 4 December, for USD76,000.”
“The reduced incidence of larger stones in 2020 and the ongoing impact of COVID-19 had reduced our average selling price for 2020 to c.USD290, which is around the bottom end of our guidance for 2020. This compares to our estimate of the 2019 price per carat excluding the higher value stones of c.USD330, a c.12% decrease,” he revealed.
“We are hopeful that the discovery of the three high-value stones within a month marks the start of a return to mining higher value diamonds. Promisingly, our more recent diamond sorts at Kareevlei indicate an increased incidence of diamonds of 3 carats and above, which is another significant driver of pricing. Accordingly, we expect prices to recover in 2021 to reflect this change,” he assured.
In addition, as the drilling programme is completed it has increased the provisional resource estimate at Kareevlei. A final updated Resource Statement will be published in January 2021. The completed drilling programme has established the continuation at depth of kimberlite in the KV1 section of the Main Pit to 140m below surface; and an increase in surface area of the KV1 section by approximately 25%. The provisional resource estimate, compared to the November 2018 resource statement, shows an increase in tonnes of 43% ---an increase in carats of 52% - an increase in grade of 6%. The detailed competent person report is expected to be published in January 2021.
Mike Houston, said, “The results generated from the recent drilling, are a very important development for BlueRock. The provisional resource estimate would provide for a mine life of a minimum of 10 years, operating at our targeted annual rate of 1,000,000 tonnes of material processed a year.”
“The Company expects to undertake further work in 2021 to prove the continuation at depth of the KV2 section of the Main Pit and to establish the true size of KV3 both of which are expected to increase the resource and the life of mine further,” he added.
