Kareevlei processing plant
JOHANNESBURG (miningweekly.com) – Recently listed BlueRock Diamonds has started trial mining operations on the K1 and K2 pipes at the Kareevlei tenement, in South Africa, after buying a majority stake in the mining right over the tenement from Tawana subsidiary Diamond Resources for R4-million in August.
The trial mining, which would be operated under licence from Diamond Resources until approval could be obtained from the Department of Mineral Resources during the first half of 2014 for the transfer of the mining right, was aimed at further testing the processing plant, with operational ramp-up expected to continue during January.
The Kimberley-focused diamond miner acquired a 74% stake in the Kareevlei tenements, which comprised a mining licence, equipment and plan. BlueRock’s black economic-empowerment partner, Kimberley-based Ghaap Mining, owned the remaining 26%.
The August Aim-listing of BlueRock, which was incorporated in England and Wales in October 2012, allowed the group to raise £1.31-million, through the issuance of 18.7-million shares at 7p apiece, to acquire the mining right and mining equipment, as well as fund the plant refurbishment, mine set-up costs and working capital requirements of the group.
Following the listing, the company said it would have about 31.5-million shares in issue, giving BlueRock a market capitalisation of about £2.21-million at the placing price.
BlueRock, which was established to invest in underexploited diamond mines and diamondiferous tailings dumps in South Africa and sub-Saharan Africa, was previously admitted to the Icap Securities and Derivatives Exchange, or ISDX, Growth Market in March 2013, and had raised £280 000 through the placing of 2.14-million shares at 13p apiece.
The Kareevlei tenements comprise five diamondiferous kimberlite pipes, with an inferred mineral resource of 359 000 ct, located about 100 km from Kimberley.
BlueRock planned to simultaneously mine the tenement’s K1 and K2 pipes – which boasted inferred mineral resources of 101 000 ct and 111 000 ct respectively – owing to their close proximity.
The refurbishment and upgrade of the dense media separation processing plant for recommissioning was largely completed and the first kimberlite plant feed was being treated.
The final recovery plant, which was based at the De Beers facility, in Kimberley, included conveyors, screens, a containerised dual station Flowsor X-ray machine and a grease table.
Meanwhile, the removal of calcrete overburden at Kareevlei through waste stripping, hauling, drilling and blasting has been completed ahead of schedule and within budget.
In October, a contractor camp was established and excavation started, with the removal of 20 000 t of hard calcrete overburden.
The BlueRock-appointed contractors had, in November, completed the drilling and blasting of an additional 50 000 t of material from the north-west side of the pipes.