JOHANNESBURG (miningweekly.com) – Aim-listed West African Diamonds (WAD), which is merging with Stellar Diamonds, reported on Thursday that its Bomboko mine, in Guinea, was fully operational, and capable of producing 1 500 ct/m.

The Bomboko mine started operations in mid-2009.

In its interim statement for the six-months ended October, WAD said that diamond sales had realised an average of $117/ct at auction, which was lower-than-expected owing to poor market conditions in early 2009.

However, the miner noted that owing to a marked recovery in the diamond market in the latter part of 2009, higher prices were now expected.

WAD, which announced its merger with Stellar Diamonds in November, said that the enlarged company would have two producing diamond mines in Guinea, three joint ventures in Sierra Leone and would own two high-grade kimberlite projects in Guinea and Sierra Leone.

Subject to successful funding, the new enlarged company would increase mining capacity and revenue at both existing alluvial mines as well as continuing development of the kimberlite projects.

WAD said that any future growth for the company was expected to come in the guise of consolidation, as the board considered WAD to be too small to attract significant investor interest.

“The company will continue to grow by consolidation activity in what is a fragmented and undervalued industry,” it said in a statement.

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