The embattled DiamondCorp plc has been struck with difficulties once again. On November 11, two thundershowers over its Lace Mine led to flooding of the mine after the area received 90 mm of rain in a period of little over an hour. This, the Company said, equalled to almost one-third of the mine’s annual rainfall.

“This overwhelmed the mine's pumping systems and flooded the 310 m production level to the hanging wall,” DiamondCorp reported. “In total, more than 10,000 cubic metres of water is estimated to have entered the mine through the open pit and access ramps.”

All personnel were evacuated from the mine without any incidents of injury. The Company reckons that it will take at least a week to pump out the water and make the production level dry. “However, once the level is dry no production will be possible in the short-term as the longhole drill rig which was operating at the time of the flood will need to be recovered and the electrics rebuilt. This could take up to 12 weeks from the time of recovery,” DiamondCorp announced.

The Company which has been facing financial difficulties, recently decided against an earlier move it had initiated for takeover or merger as it felt the project was not valued correctly.   

DiamondCorp is currently consulting “a business rescue practitioner” with regards to its operating subsidiary, Lace Diamond Mines (Pty) Ltd.

 “The Company has requested a suspension of its shares from trading on both the AIM Market of the London Stock Exchange and on the Alternative Exchange of the JSE Limited with effect from 07:30 a.m. UK time and 09:00 a.m. SA time, respectively, pending clarification of its financial position,” DiamondCorp declared.