DiamondWorks updates production results from its Yetwene and Luo diamond mines
VANCOUVER, Aug. 9 /CNW/ - Bruce Walsham, President, CEO and Chairman of DiamondWorks Ltd., is pleased to provide an update on the company's diamond operations at the Yetwene and Luo mines in northeastern Angola. Operations at the Yetwene mine recommenced in April and both the Luo and Yetwene mines resumed a 24-hours-a-day production rate in early June. In July, the combined production from the mines was 13,335 carats. This total includes 968 carats recovered on July 29, which is a new, single-day production record for the company. The largest stone mined recently was a 42.17-carat gem from Luo.
At DiamondWorks' latest diamond sale held on July 27th, the parcel from the Luo Mine sold for an average price of US$215 a carat, while the parcel from the Yetwene mine sold for US$212 a carat. The total parcel of approximately 7,100 carats - representing the contents of the company's second sale held in July - was valued at approximately US$1.5 million before sales costs, royalties and taxes. The first sale in July, held on the 9th, realised approximately US$1.3 million.
In Sierra Leone, Mr. Walsham said that he welcomes the recent peace agreement and he looks forward to the company being able to resume its operations in that country. DiamondWorks was in the process of bulk sampling the Koidu mine's two kimberlite pipes, as part of a mine feasibility study, when a coup occurred in May 1997. The company suspended its operations at Koidu and removed its operating personnel shortly after the coup as a precautionary measure. The mine has a diamond resource, as estimated by Watts, Griffis and McOuat Limited in 1996, totaling approximately 4.67 million carats. DiamondWorks believes that the mine is capable of producing approximately 200,000 carats of diamonds a year.
DiamondWorks is a Canada-based diamond mining and exploration company.
In addition to the producing Luo and Yetwene mines in Angola, DiamondWorks has other diamond concessions in Angola and Sierra Leone, including the Koidu mine.
newswire.ca
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[my comments] - This has to be positive cash flow ... at a healthy and still-improving rate. The near-term production goal for existing operations at Yetwene and Luo is 20,000 carats per month ... looks like they're on track to achieving that. No word, though, on development of the main Camatchia pipe at Luo - i guess they'll need a few more nickels in the piggy bank for plant and equipment of that size ... and when the gravels on top [i think] give out with 42.17ct rocks, it's not such a hard wait.
Vague here on Koidu, of course it takes time to come out of chaos, and the monsoon season in SL is not over till November anyway, also roads must be demined and repaired, and bridges rebuilt, so there's no big panic. Still ... i so curious. |
