PERTH (miningweekly.com) – The share price of ASX-listed Kimberley Diamonds finished 25% higher on Wednesday after the company announced an independent valuation of its Lerala diamond mine, in Botswana.
Mineral resource consultancy Venmyn Deloitte has valued the Lerala diamond mine at some A$105-million, which was 24% higher than Kimberley’s in-house valuation of A$85-million.
Kimberley said on Wednesday that the increased valuation was driven largely by an upgrade to the mine’s mineral resource and ore reserve that was announced in January this year, along with decreased costs negotiated within the mining contract, a weaker Australian dollar assumed over the life of the project, and Venmyn’s decision to place a value on inferred resources that currently fell outside of the life-of-mine plan.
Once in production, the Lerala mine was forecast to have a life of some seven years, treating 1.4-million tonnes of ore a year and producing an average of 357 000 ct/y.
Kimberley shares closed at a high of 15c each, up from an opening price of 12c each.