UK-based exploration and mining company River Diamonds on Friday announced that gold processing commenced at the company’s 100%-owned Vatukoula gold mine, in Fiji.

The JORC compliant gold resources at Vatukoula totaled 16,84-million tons at an average grade of 9,49 g/t of gold, or 5,15-million ounces of gold.

First gold from continuous operations was expected to be poured over the next few weeks. The mine was expected to produce some 28 000 oz to June 30, 2008, and 111 000 oz for the 2008/9 financial year.

“This is a significant milestone for the company, the Vatukoula gold mine and the Fiji economy generally. The mining operations are in full swing and open pit mining on the high grade President Hill open pit commenced today [Friday],” River Diamonds executive director David Lenigas commented.

River Diamonds bought the 80% of Viso Gero International (VGI) that it did not already own, from Viso Gero Global in March. VGI owns 94% of Westech Gold, which, in turn, owns the Vatukoula mine. The companies agreed that VGI would buy the outstanding 6% of Westech before River Diamonds completed its transaction.

Emperor Gold Mines, DRDGold subsidiary previously owned Vatukoula before selling the mine to Westech.