Commencement of Kimberlite Processing

RNS Number : 6388Z

BlueRock Diamonds PLC

04 September 2018

 

BlueRock Diamonds PLC / AIM: BRD / Sector: Natural Resources

4 September 2018

BlueRock Diamonds PLC ('BlueRock' or the 'Company')

Commencement of Kimberlite Processing from KV1 Pipe

BlueRock Diamonds PLC, the AIM listed diamond producer, which owns and operates the Kareevlei Diamond Mine ('Kareevlei') in the Kimberley region of South Africa, is pleased to announce that kimberlite processing from its second kimberlite pipe, KV1, has now commenced.  KV1 is one of five known kimberlite pipes within the Company's Kareevlei project area and has an Inferred Mineral Resource grade of 6.3cpht which is 40% greater than that of the 4.5cpht KV2 pipe where processing commenced in 2014. 

The Company's Competent Persons Report contained in its AIM Admission Document estimated the Kareevlei Inferred Mineral Resource (KV1, KV2 and KV3 kimberlite pipes) under the SAMREC code to contain 359,000 carats in 7,984,000 tonnes of ore. Since mining operations commenced at Kareevlei 10,010 carats have been mined from 370,233 tonnes of ore from the KV2 pipe. KV1 is situated approximately 40 metres from KV2, therefore, over time the two pipes will be mined in a single open pit, allowing the Company to benefit from a lower stripping ratio.  Alongside this, 10 metres of the non-diamond bearing calcrete cap will be mined off to waste, which allows for the higher Inferred Mineral Resource grade of KV1 to be reached sooner than in KV2 where only 7 meters of the calcrete cap was mined off to waste.  

As previously announced, the crushing circuit at Kareevlei is now processing at or around the Company's target production level of 80 tonnes per operating hour following the installation of a second cone crusher and the implementation of optimisation initiatives.  This is expected to allow the Company to alleviate the production challenges often faced in the rainy period from January to April through establishing a stockpile of crushed material for processing. 

Adam Waugh, CEO, commented, "I'm delighted that processing from KV1 is now underway which is anticipated to increase the overall grade, allowing for greater flexibility in production and more consistent results.  With our crushing circuit now processing at or around the target production levels of 80 tonnes an hour, the outlook for the remainder of 2018 is looking positive. I look forward to providing a further update in our Q3 production report due in early October 2018."

Market Abuse Regulation (MAR) Disclosure - Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

The information in this announcement has been reviewed by Dr. John Andrew Grills of Z Star Mineral Resource Consultants (Pty) Ltd, a recognised Competent Person for diamonds (B. Sc. Ph.D., Pri. Sci. Nat. 400426/04) Dr. John Andrew Grills consents to the inclusion of the Mineral Resource information in the form and context in which it appears.

**ENDS**

For further information, please visit BRD's website www.bluerockdiamonds.co.uk or contact:

BlueRock Diamonds PLC Adam Waugh, CEO David Facey, FD	[e-mail] [e-mail]
SP Angel (NOMAD and Joint Broker) Stuart Gledhill / Lindsay Mair/Caroline Rowe	Tel: [phone]
SVS Securities (Joint Broker) Tom Curran / Ben Tadd	Tel: [phone]
St Brides Partners Ltd (Financial PR) Lottie Wadham / Juliet Earl	Tel: [phone]

Notes to editors:

BlueRock Diamonds is an AIM-listed diamond producer which operates the Kareevlei Diamond Mine near Kimberley in South Africa which produces diamonds of exceptional quality and ranks in the top ten in the world in terms of average value per carat. The Kareevlei licence area covers 3,000 hectares and hosts five known diamondiferous kimberlite pipes.  As at 3 September 2018, it was estimated that the remaining Inferred Mineral Resource from the three kimberlite pipes (KV1, KV2 and KV3) represents a potential inground value of circa US$124 million at a current average run of mine diamond value of US$362/carat. The Company is currently focused on a target of consistently producing ore at a rate in excess of 25,000 tonnes a month while increasing the average recovered grade by mining deeper into KV2 (Inferred Mineral Resource grade of 4.5cpht) and commencing production from KV1 (Inferred Mineral Resource grade of 6.3cpht).

Glossary of technical terms used:

"Inferred Mineral Resource" that part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be of limited or uncertain quality and reliability.

"SAMREC" the South African Code for Reporting of Mineral Resources and Mineral Reserves, as published by the South African Mineral Committee under the auspices of the South African Institute of Mining and Metallurgy;

 

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