Name and Location
Lerala diamond mine restart and plant recommissioning project, Botswana.

Client
Kimberley Diamonds Limited (KDL).

Project Description
Lerala comprises a cluster of five diamond-bearing kimberlite volcanic pipes – K2 to K6 – and a processing plant with a nominal capacity of 200 t/h. The project area is covered by a 15-year fully permitted mining lease covering 21.86 km2.

The mine and processing plant were placed on care and maintenance in July 2012.

The mine has a current resource of about 10.3-million tonnes at an average grade of 31.5 ct per hundred tonnes, equating to an estimated 3.3-million carats.

The project involves modifications to the Lerala processing plant to enable it to operate more effectively and reliably treat 200 t/h.

Once in production, Lerala has a current forecast life-of-mine of seven years, treating 1.4-million tonnes of ore a year and producing an average of 357 000 ct/y.

Net Present Value/Internal Rate of Return
Not stated.

Value
KDL approved A$14.6-million for upfront capital items required to bring the plant and mine to a state of readiness in the quarter ended September 2015.

Duration
Not stated.

Latest Developments
Openpit mining operations have started at the Lerala diamond mine.

First production and diamond recovery is planned later in April, with diamond sales expected by June.

Meanwhile, plant construction activities continue to progress well despite recent delays, owing to higher-than-normal rainfall. It is expected that plant construction will be completed this month, with recommissioning expected later in April.

Construction of the tailings dam extension started in March and is progressing on schedule to accept tailings in April. The construction of the new dry tailings conveyor system also started in March.

Key Contracts and Suppliers
Consulmet (plant modifications).

On Budget and on Time?
Not stated.

Contact Details for Project Information
KDL, tel + 61 2 8243 7500.