Paragon Diamonds has concluded a mining lease agreement with the Lesotho government, paving way for preparations to start work on stage 1 production at its Lemphane kimberlite project.
The company noted in a statement emailed to Rough&Polished that the lease was granted for an initial 10 years, renewable for three consecutive 10 year periods.
Stage one production would target a minimum 500,000 tonnes per annum production to recover about 10,000 carats per year at a minimum average value of $750/ct.
Stage one was also intended to produce a maiden inferred resource at Lemphane and definitive feasibility study for the second stage.
“Having previously recovered stones of up to 8.9 carats with values in excess of $2,400/ct, we have already demonstrated Lemphane's potential to yield large high-value diamonds,” said company chairperson Martin Doyle.
“As well as generating significant revenues, Stage 1 production is expected to increase the average value per carat (a consequence of the higher amount of tonnage mined), build on the robust economics already identified and also provide a bankable Mineral Resource.“
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
