Name and Location
Lace diamond mine development project, Free State, South Africa.

Client
DiamondCorp.

Project Description
The 1.2-million-tonne-a-year Lace mine is expected to produce more than 500 000 ct/y of diamonds at peak production.

The Main pipe at the Lace mine contains 33.1-million tons of kimberlite, indicated and inferred to a depth of 855 m, containing an estimated 13.4-million carats in both resource categories at an average grade of 40.1 carats per hundred tons.

The resource has an in situ value of more than $2-billion at $160/ct.

The deposit will be mined through block-cave mining, with three caves planned over the 25-year life-of-mine on the 47, 67 and 85 levels, at depths of 470 m, 670 m and 850 m respectively.

The kimberlite is open at depth, with with a significant bulge between 250 m and 360 m, and can potentially add additional tonnage and diamonds not currently included in the resource statement.

Value
The total development cost of the project, including working capital and a 15% contingency on capital and development costs, is estimated at R384-million.

The peak funding requirement of R286-million is expected in April 2015, when blasting of the slot drive and doming start to deliver significant tonnage of kimberlite.

The costs of establishing the block cave thereafter are offset by revenues from the sale of diamonds, recovered from kimberlite mined during development.

Duration
The Lace mine is due to start production in the first half of 2015.

Latest Developments
Diamondcorp has reported that underground development at the Lace project remains close to schedule and within budget.

The owner-operated mining fleet continues to provide more than 90% availability and is also operating within budget.

Steel sets are being installed in the boxcut ramp to provide tunnel support before the excavation is backfilled.

The underground conveyor belt system is on schedule and the first leg for installation has been delivered to site.

Surface piling for the raise boring of the life-of-mine ventilation shaft has begun.

A 400 t/h in-pit screening system, which has the potential to increase tailings throughput to 150 000 t/m, has been installed and will soon be commissioned.

Drilling of the bulge area from underground continues to confirm the potential for additional kimberlite between the 260 m and 470 m levels, which is not currently in the mine plan.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The project is on target to start production in 2015.

Contact Details for Project Information
DiamondCorp, tel +44 20 3151 0970, fax +44 20 3151 0971 or email info@diamondcorp.plc.uk.