JOHANNESBURG (miningweekly.com) – TSX-listed Rockwell Diamonds has seen a 13% increase in carat production from its Middle Orange River operations in the three months to February 28, but highlighted that the grade was lower at 0.34 ct/100 m3.
The diamond miner noted that the higher output was owing to better performance on volumes, which increased year-on-year to 45% of gravel processed, to 0.9-million cubic metres.
It also noted that its Saxendrift volumes had increased by 95% in the fourth quarter of the 2015 financial year, as a result of a revised mining fleet, but added that, although Niewejaarskraal volumes had increased by 57%, facilitated by modifications to the in-field screen, it remained below plan, which was subeconomic at current rates of plant throughput.
President and CEO James Campbell noted that the Saxendrift operation performed to plan and delivered another increase in volumes processed quarter, helping to offset the impact of the lower grades. “Carat production at Saxendrift increased 9% compared with the same quarter in 2014, and included two high-value diamonds [larger than 120 ct].”
The operation had also recorded a 43% improvement in diamond sales to $8.7-million.
Campbell noted that the problems at Niewejaarskraal were dealt with by transitioning to mining the higher-grade Rooikoppie gravels towards the end of the quarter.
“We are reviewing our options with the focus on increasing the throughput rates. This will entail suspension of production while we undertake planning to refine our understanding of the orebody and, at the same time, expand the processing capacity to 180 000 m3 a month,” he highlighted.
Overall production would be impacted in the short term as a consequence, but the financial impact would be limited as Niewejaarskraal was currently incurring operating losses.
“Meanwhile, we continue to work towards building Rockwell’s longer-term value through incorporating the acquisition of the Remhoogte/Holsloot Project from Bondeo 140 cc. We are working towards closure of this transaction before the end of the first half.
“The roll-out of the integration plan will see us applying our technical skills to deliver positive returns from this early-life project. Our medium-term plans include exploration at Lanyonvale and large-scale bulk sampling at Wouterspan, in advance of a decision to commence operations on this property,” Campbell said.