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Stable Diamond Industry Ups Second Quarter Mine Prospects in Botswana

Stable Diamond Industry Ups Second Quarter Mine Prospects in Botswana

Written by Natasha Odendaal | From Mining Weekly

As Gem Diamond’s flagship Letšeng mine, in Lesotho, continued to perform well during the year to December, the London-listed diamond miner was gearing up for commercial production from its Ghaghoo mine, in Botswana.

The $96-million mine, situated near the south-eastern border of the Central Kalahari Game Reserve, was on track for commercial production during the second half of 2014, said CEO Clifford Elphick on Tuesday.

The diamond miner aimed to ramp up to the Phase 1 planned production rate of 200 000 ct/y to 220 000 ct/y – extracted from 720 000 t of ore – by the end of the year.

“With the kimberlite now intersected and the development of the mining tunnels taking place, the completion of Phase 1 of the project is in sight,” Elphick said, adding that the main decline reached 50 m from the break-off to the first production level in February 2014.

“It is very satisfying to see that the advance of the decline shaft through difficult and dangerous conditions has taken place on time and within budget,” he said.

The mine, which was in a remote area, characterised by shifting sands and difficult road conditions, had effective operating mining support infrastructure, a camp, a treatment plant and other services in place.

By December, Gem Diamonds had spent $71.2-million of the total capital budget for Ghaghoo and the group had, in January, finalised a $25-million nine-month unsecured loan facility through Nedbank Capital for the remaining capital spend.

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