2013 Revised Resource and Reserve Statement

RNS Number : 4482K

Gem Diamonds Limited

31 July 2013

 



31 July 2013

GEM DIAMONDS LIMITED

("Gem Diamonds" or "the Company")

2013 REVISED RESOURCE AND RESERVE STATEMENT

Gem Diamonds Limited (LSE: GEMD) has released a revised Resource and Reserve statement, which is available on the Company's website www.gemdiamonds.com

Gem Diamonds has two resource bases - the Letšeng diamond mine in Lesotho (ownership 70%) and the Ghaghoo development project in Botswana (ownership 100%).

Key Comments on the 2013 Resource and Reserve Statement, which is effective 1st January 2013:

•              SAMREC Compliant Resources and Reserves, independently verified by Venmyn Deloitte.

•             Gross resources (inclusive of reserves) totalling 25.8 million carats with an average grade of 6.30 carats per hundred tonnes at an average diamond price of US$625/carat.

 •            Letšeng total resource base has increased in carat terms by 32%, from the 2012 statement, to a total of 5.3 million carats, with an average grade of 1.75 carats per hundred tonnes at an average diamond price of US$2191/carat. The increase in the resource base is a result of the successful extension of the orebody at depth from recent drilling programmes.

•             The Ghaghoo project has declared a mineable reserve, ahead of the 2014 planned production start, of 2.1 million carats, with an average grade of 27.81 carats per hundred tonnes at an average diamond price of US$246/carat.

For further information:

Gem Diamonds Limited

Sherryn Tedder, Investor Relations
Tel: [phone]
Mob: [phone]

Pelham Bell Pottinger

Charles Vivian / James MacFarlane

Tel: [phone]

About Gem Diamonds:

Gem Diamonds is a leading global diamond producer of high value diamonds. The company owns the Letšeng mine in Lesotho as well as the Ghaghoo mine, currently in development in Botswana. The Letšeng mine is famous for the production of large, top colour, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world. Since Gem Diamonds' acquisition of Letšeng in 2006, the mine has produced four of the twenty largest white gem quality diamonds ever recorded.

Gem Diamonds has a growth strategy based on the expansion of the Letšeng mine and the development of the Ghaghoo mine, while maintaining its strong balance sheet. The Company seeks to maximise revenue and margin from its rough diamond production by pursuing cutting, polishing and sales and marketing initiatives further along the diamond value chain. With favourable supply/demand dynamics expected to benefit the industry over the medium to long term, particularly at the high end of the market supplied by Gem Diamonds, this strategy positions the Company well to generate attractive returns for shareholders in the coming years.

www.gemdiamonds.com

 

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