BlueRock Diamonds PLC announced yesterday that daily production levels at its Kareevlei Mine in South Africa have increased and will soon reach the monthly target the Company has fixed of 25,000 tonnes.  

For the month of June 2017, production at Kareevlei Mine reached 14,427 tonnes, up by 47.68% over May 2017 production of 9,769 tonnes. The value per carat realised in sales stood at US$ 355 per carat. This brought the average sales value per carat for 2017 down to US$ 318; and the overall average sales value per carat to US$ 300.

Despite this, the values per carat realised in sales are greater than the latest guidance  put out by the Company which was US$ 232 per carat, based on the workings by a competent authority.  

BlueRock says however, that the average grade recovered in June remains below its long term expectations, at 1.60 carats per hundred tonnes for the year; but the Company expects an improvement in grades over the next few months as it goes deeper into the pit.

The Company also announced that negotiations for a loan – in order to acquire a new replacement plant -- with one of its significant shareholders are ongoing. If the loan is secured and the necessary improvements are carried out, the mine's production consistency will be greatly improved, the Company feels.

Chief Executive Officer of BlueRock Adam Waugh commented: "We are encouraged by the recent increase in production, which strengthens our confidence that our plant is capable of operating consistently at targeted volumes, similarly we are pleased that the sales value per carat achieved for our production continues to be above the competent person report's expectations. As we move into deeper ground we expect grades to improve and to see Kareevlei become cash flow positive in the near term.”

Pic Cap: Kareevlei Processing Plant

Pic Courtesy: BlueRock Diamonds