JOHANNESBURG (miningweekly.com) – LSE-listed Gem Diamonds’ share price rose by 7.74% on Wednesday morning after it announced that it had recovered another 100 ct diamond at its Letšeng mine.
The white, Type IIa diamond was recovered on June 22 and is the third diamond larger than 100 ct in size to be recovered at the mine since May.
The other two diamonds included a 164 ct D Colour Type IIa diamond, which was sold for $9-million into a partnership arrangement and a 103 ct yellow diamond.
Meanwhile, Letšeng’s June export tender achieved an average price of $2 087/ct, for a total value of $22-million. This compares to an average value of $1 599/ct achieved for the first three tenders in the year.
Gem Diamonds reported that four new secondary and tertiary crushers had been successfully installed at Letšeng on schedule and within budget, and were now operational.
Mining in the higher-value, higher-grade Satellite pipe had also started as planned and would likely result in improved revenues as the build-up of Satellite pipe ore contribution to overall production ramps up for the remainder of this year.
Liberum Capital said in a note, on Wednesday, that the installation of new crushers at Letšeng was bearing fruit.
It pointed out that the market had been concerned that Gem Diamonds was no longer finding the “best stones at reasonable frequency”; however, Liberum believed that the latest trends seen as the mine moves into higher-grade ore should help alleviate such concerns.
GHAGHOO MINE
Gem Diamonds further reported on Wednesday that the development of its Ghaghoo mine, in Botswana, continued to progress satisfactorily.
“The sand portion of the access decline has now been successfully completed and the recovery plant is 90% complete. Tunnelling has commenced through the more competent basalt rock, and Phase 1 will see the first kimberlite ore accessed in mid-2014.
“This will result in planned production of 230 000 ct/y at a mining rate of 720 000 t/y,” the company said.