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DiamondCorp places Lace operating subsidiary into business rescue

16th November 2016

By: Anine Kilian

Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Aim- and AltX-listed DiamondCorp has placed its operating subsidiary Lace Diamond Mines (LDM) into business rescue.

The company on Monday said it was consulting a business rescue practitioner for LDM after heavy rainfall on November 11 overwhelmed the Free State-based Lace mine's pumping systems and flooded the 310 m production level to the hanging wall.

It noted that almost 90 mm of rain had fallen at the mine within an hour, which equated to nearly one-third of the rain the mine usually experiences in a year.

In total, more than 10 000 m3 of water is estimated to have entered the mine through the openpit and access ramps.

A longhole drill rig that was operating at the time of the flood will have to be recovered and the electrics rebuilt – a process that is likely to take 12 weeks to complete. Production at the mine could not resume until then.

LDM will appoint a business rescue practitioner in due course.

This comes only a week after DiamondCorp said it would no longer sell the Lace mine, as it had considered earlier, following various production and financial challenges.
 

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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