JOHANNESBURG (miningweekly.com) – Despite a “noticeably weaker” first-quarter market, the first three tenders in 2015 for the flagship Letšeng mine, in Lesotho, had generated prices comparable to that of the three tenders in the final quarter of 2014, London-listed Gem Diamonds CEO Clifford Elphick said on Thursday.

Providing a sales and operation update for the first four months of 2015, he advised that Letšeng achieved an average price of $2 146/ct for the 35 940 ct sold, generating $77.1-million in the five months to May 2015, compared with $2 140/ct, generating $67.7-million, for the 31 614/ct sold during the preceding fourth quarter.

This brought the diamond producer’s 12-month rolling price average to $2 397/ct.

The company also reported the recovery of a “virtually undamaged” 314 ct type-IIa white diamond and three other high-quality diamonds of over 100 ct, as the flagship mine continued its strong performance.

After a 19-day shutdown,  Letšeng’s Plant 2 Phase 1 upgrade was completed on time and within budget, increasing the plant capacity by 250 000 t/y and further reducing diamond damage.

During the four months to April, Letšeng's Plants 1 and 2 treated 1.72-million tonnes of ore – 67% of which was sourced from the main pipe, with the balance from the satellite pipe.

About 280 000 t of ore, of which 80% had been sourced from the main pipe and 20% from stockpiles, had been treated through the Alluvial Ventures contractor plant.

Meanwhile, at Gem Diamonds' Botswana operation, good progress had been made in the first four months of the year, with the first production area yielding encouraging diamond recoveries.

During the period under review, the Ghaghoo mine delivered 16 174 ct at a grade of 24 carats per hundred tonnes (cpht), with increasing tonnages achieved each month resulting in an average grade of 29 cpht in recent weeks.

Further, the recovery of five diamonds greater than 10 ct each – the largest of which was 48 ct – during the five months to May was encouraging, said Elphick.

The development remained on track to achieve planned tonnages and grade for the second half of 2015, he added, pointing out that production blasts on Level 1 had started in the production area.

The decline continued to be developed to Level 2, with the development of the production area 2 starting later in 2015.

“As the production area expands and more production faces become available, together with the planned delivery of additional mining equipment scheduled for late May, the mine is on track to ramp up to full production in the second half of 2015 as planned,” Elphick concluded.