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
Diamond production from the Lerala mine has started, with first sales targeted in June.

The start of processing operations at the Lerala mine follows the start of openpit mining in April this year.

Despite a delay necessitated primarily by the requirement to explore a potential alluvial deposit in the tailings dam footprint, ore processing at Lerala has now started through the plant and will be ramped-up to full production levels over the next several weeks.

During the ramp-up phase, plant process is being balanced to optimsie recovery efficiency and plant throughput.

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.