JOHANNESBURG (miningweekly.com) – Diamond exploration and development company Pangea DiamondFields reported on Friday that “substantial progress” had been made in its goal of progressing three of its projects to a mine development phase.

“Since listing on Aim [in] October 2006, Pangea has made solid progress in exploring and developing its portfolio of projects and specifically over the past year, the focus has been on driving projects beyond exploration and towards commercialisation,” CEO Brett Thompson commented in a statement to shareholders.

Out of the eight projects in its portfolio, Pangea said that its Cassanguidi project, in Angola, would advance into commercial development.

The company had increased its stake in the the project to 58,5% during 2008 and was now working towards completing the construction and commissioning of an expansion project, as well as to establishing commercial-scale operations at the project in the first half of 2009.

Further, the company had started pilot mining at its Bakerville project, in South Africa, at the end of 2008, after bulk-sampling activities had revealed a substantial resource.

Pangea expected the Bakerville project to become its second commercial-scale mine and would fast-track the project.

Meanwhile, despite the company’s Harts River project having been identified as a high potential project, the significant investment of about $20-million required to develop the project has prompted Pangea to put it on hold until economic conditions had improved.

In light of the global economic crisis, which had impacted on the demand for diamonds and selling prices, the company has delayed and suspended a number of its projects until conditions improved.

“Pangea's strategy going forward, is one of risk aversion until there is some sign of market improvement.

“Specifically, Pangea will continue the development of the Cassanguidi and Bakerville projects and cut expenditure on all projects as well as overheads,” said Thompson.

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