Progress Update

RNS Number : 0160V

BlueRock Diamonds PLC

09 December 2013

 



BlueRock Diamonds plc (the "Company")

Progress Update

9 December 2013

The Directors of BlueRock Diamonds plc are pleased to announce the commencement of trial mining operations on the K1 and K2 pipes and an update on plant recommissioning work at Kareevlei.

As stated in the Company's admission document dated 19 August 2013, following admission to AIM, the Company was to engage contractors to remove the calcrete overburden at Kareevlei involving waste stripping, hauling, drilling and blasting during the first three months with mining activities expected to commence in the fourth month following Admission. The Board is pleased to announce that the work detailed below has been completed ahead of schedule and under budget.

Mining Operations

In early October 2013, a contractor camp was established and excavation commenced leading to the removal of 20,000 tonnes of hard calcrete overburden. Towards the end of November 2013, the contractors completed drilling and blasting of an additional 50,000 tonnes of material from the north west side of the pipes. Following this drilling and blasting, the overburden has been excavated to reveal the weathered kimberlite below.

Following this work the close proximity of pipes K1 and K2 became more apparent and the Board has decided to mine pipes K1 and K2 simultaneously.

Treatment Plant Refurbishment

The Executive Directors, Riaan Visser and John Kilham, along with the Company's BEE partner, Willie van Wyk, have been working together on site in order to refurbish and upgrade the processing plant which is now largely complete.

Water will be sourced from existing boreholes on the property that are currently producing. 3 additional boreholes have been drilled and the strongest one equipped with a 12,000 litre/hour pump. The water storage reservoir is 80% full and contains sufficient water for the initial processing requirements.

Mine Site Establishment

In addition, although mains electricity is available 5km from the plant site, the three generators purchased with the mining assets have been tested, repaired and serviced and will be used to power the plant.

Recovery Plant

The final recovery section has been moved to the Company's secure unit within a leased area at the De Beers facility in Kimberley.

The Directors are pleased to announce that the DMS processing plant commissioning has commenced and the first kimberlite plant feed is being treated. Trial mining will continue to further test the processing plant with operational ramp up expected to continue during January 2014.

 It remains that the Board expects that operational capacity of 12,000 tonnes per month (being 144,000 tonnes per annum) is achievable using the existing plant following its refurbishment and subsequent commissioning.

The Board looks forward to updating shareholders with further developments.

The Directors note with sadness, the death of Nelson Mandela.

Enquiries:

BlueRock Diamonds plc Riaan Visser, CEO www.bluerockdiamonds.co.uk	[phone]
SP Angel Corporate Finance LLP - Nominated Adviser & Broker David Facey / Katy Birkin / Liz Yong	[phone]

 

END

 

 

MSCVKLBBXLFLFBK