DiamondCorp suspends September auction on weak diamond prices

DiamondCorp said it postponed its September auction due to the weakening of diamond prices in the July-August period.
It said in a statement that it would conduct the diamond auction once the market recovers.
DiamondCorp had planned to put 5,312 carats of diamonds under the hammer.
These diamonds were recovered from tailings retreatment before the Lace plant, in South Africa, was shut-down in response to the weak prices.
It said full scale production of diamonds from tailings retreatment would not begin again until the first quarter of 2013.
DiamondCorp said it also holds 2,168 carats of diamonds recovered from underground bulk sampling, which management would retain for evaluation by potential off-take partners.
The diamond junior said it was looking forward to beginning underground development at Lace mine after securing the majority of the project finance required.
The Industrial Development Corporation had agreed to lend the miner $26.7 million, which would be used to develop a 1.2 million tonne a year block cave mining operation at the company’s 74 per cent owned Lace mine.
DiamondCorp would raise a further $12.1 million prior to the initial drawdown of the new Lace facility.
Meanwhile, the diamond junior posted pre-tax losses of £1.6 million for the six months to the end of June - up from £1.2 million a year ago.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished