Diamond Core moves ahead on SA gem projects
JSE-listed local diamond explorer Diamond Core
has implemented the first phase of its growth path, with the
commissioning of the 50 t/h dense-media separation (DMS) plant
and final recovery unit at Paardeberg East, situated 40 km west
Diamond Core is focused on, and currently active in, the
Northern Cape province of South Africa, and is currently
actively involved in two kimberlite exploration projects, the
Paardeberg East project and the Skeyfontein joint venture and,
through its acquisition of Samadi (SA), has a suite of three
alluvial projects, Uitdraai and Silverstreams, and the De Kalk
project some 30 km east of the town of Douglas.
The company also has submitted several applications to the
Department of Minerals and Energy Affairs (DME) for additional
prospecting rights in the Northern Cape.
Diamond Core was poised to start bulk sampling of PK1, its
Paardeberg East project, it said in a note to shareholders on
Independent verification and auditing of the bulk sampling plant
and process has been initiated with further drilling and
geological work on PK3, scheduled for the second quarter of
In addition, construction of the processing plant at
Silverstreams, located some 10 km north of Prieska was
However, the capital-spend for the project increased by 14% but
was expected to yield an increase in front end capacity in
excess of 400%.
Commissioning of the plant was scheduled for the middle of April
2007, and bulk sampling operations are scheduled to commence in
the beginning of May 2007.
Meanwhile, Diamond Core has reported that the development of the
Uitdraai and De Kalk projects would be the focus during the
second quarter of 2007 upon completion of the Paardeberg East
and Silverstreams projects.
Moreover, the company recently announced the conclusion of an
agreement to acquire the Sanddrift project from Southern Era
Management Services and Minex Projects.
Sanddrift was adjacent to the Silverstreams project and has the
potential to add significantly to the alluvial gravel resources.
Additional exploration work has been performed on the
Skeyfontein kimberlite project.
Diamond Core posted a headline loss of 2,51 c a share compared
with the 5,76 c loss incurred the previous year for its interim
results for the six month ended December 31.
The largest portion of the company’s exploration costs of
R4,141-million (2005: R733 899) was related to the Paardeberg
East project, while the capital expenditure of R83,6-million
incurred, including earthmoving plant (R38,5-million) and
processing plant (R42,6 million) for the Paardeberg East and