Aim- and JSE-listed gem-miner Diamond-Corp has been granted the mining rights for its flagship Lace project in South Africa’s Free State province.

The mining rights give the company the legal tenure and operating framework required for some 20 years of mining at Lace, which last operated in 1930.

“While we are starting this mine in a period of challenging market conditions for the diamond industry, we are confident that if we can demonstrate profitability in the current climate, Lace will grow to be a long-life producer of high-quality gem diamonds as the long-term fundamentals for the diamond market remain strong,” CEO Paul Loudon commented.

DiamondCorp, in conjunction with its two black economic-empowerment part- ners, Shanduka Resources and Sphere Investments, is redeveloping the mine, aiming to produce more than 500 000 ct/y at peak production.

Initial underground mining has started at a rate of 1 000 t/d from the Satellite pipe, and will access the potentially high-grade hypabyssal zone of the main pipe in the second half of 2009.

Production will increase to 3 000 t/d by midyear and reach full production of 4 000 t/d when the vertical shaft is refurbished in 2010.

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