JOHANNESBURG (miningweekly.com) – Junior miner BlueRock Diamonds has secured the option to buy Diacar’s processing plant, which is located at BlueRock’s Kareevlei mine, in the Northern Cape, for R1.6-million.
Diacar has been operating the Diacar plant at the Kareevlei mine since November 2015 under a subcontracting agreement for which it was paid 40% of the diamond revenues generated from the plant.
BlueRock in July terminated agreements with Diacar for loading and hauling services and for diamond processing.
The option to acquire the processing plant will cease on December 31.
The technical capacity of the Diacar plant is similar to BlueRock's existing plant and will enable BlueRock, at minimal cost, to further assess its options for permanently increasing capacity.
“The option to buy Diacar's plant gives us operating capacity and flexibility over the course of the next four months at little cost and with the benefit of 100% of any diamond revenues arising from the Diacar plant going forward,” says CEO Adam Waugh.