mining news
11
07.13
AIM-listed DiamondCorp has provided an up-
date on activities relating to the 47 level block
cave development at its Lace mine near
Kroonstad in the Free State.
The company has completed the required
modifications to the 1,2 Mt/a Lace process-
ing plant to allow seamless transition from
treatment of the tailings to underground kim-
berlite. The modifications were completed on
schedule and within budget.
Surface and underground development ac-
tivities accelerated in the period April to June.
Trackless mining crews focused their blast-
ing activities on upper level conveyor belt
declines and the loading loop on the 200 m
level. A handheld drilling crew advanced the
165 m level vent raise which will allow tempo-
rary ventilation for continuous blasting condi-
tions down to the 470 m level.
Crews achieved the scheduled develop-
ment metres during the period with cumula-
tive cost per metre to the end of May around
15 % under budget due to tight cost control
and the operational efficiency of the compa-
ny’s owner-operated mining fleet.
DiamondCorp continues to be successful
in recruiting experienced underground per-
sonnel. The total mine workforce now stands
at 161 employees and underground devel-
opment will move to three shift continuous
operations this month (July). Change houses
sufficient to accommodate more than 300
employees at full-scale operations will soon
be completed.
Excavation of a new 66 000 bank cubic me-
tre (bcm) boxcut, which will provide the sur-
face entrance to the twin conveyor belt and
services declines for the life of the mine, is
75 % complete. The boxcut is three weeks
behind schedule due to encountering more
competent ground earlier than expected,
which is slowing down the mining rate. This
delay will have no impact on the overall de-
velopment schedule as the activity is not on
the critical path and the more competent
ground is a positive with respect to mine por-
tal stability. The boxcut development is 40 %
under budget on a bcm basis, as a result of
owner-operated fleet efficiencies.
DiamondCorp says its decision to develop
a core competency in rebuilding in-house its
heavy equipment mining fleet is already yield-
ing results in terms of operating efficiencies.
The first fleet of rebuilt underground trucks
and loaders is providing better than 90 %
availability and operating significantly under
budget with respect to diesel consumption.
In the past three months, a 9,5 tonne un-
derground loader, a 7,4 tonne low profile
underground loader and a 20 tonne under-
ground dump truck have been completely
stripped and rebuilt in house on schedule and
within budget. The company’s heavy equip-
ment workshop is rebuilding these machines
for between 25-50 % of the price of new ma-
chines. Two more loaders, two more 20 tonne
dump trucks and a single boom face drilling
rig are next in line to be rebuilt.
During the past quarter, the EPCM contract
for the underground conveyor belt design,
fabrication and installation was awarded. The
design work is 100 % complete and detailed
drawings are now being generated and veri-
fied. Orders have been placed for the major
imported belt and drive components, thereby
fixing exchange rates.
The company has taken delivery of a new
Boart Longyear LM30 underground diamond
drill rig and a programme of 2 000 m of un-
derground core drilled is planned to be com-
pleted before the end of the year. This drilling
will be undertaken from inside the kimberlite
to better define the margins of the bulge as
well as the 47 level block cave area.
The 47 level block cave development is
forecast to cost R286 million (£19 million)
and commence commercial production in
the first half of 2015. The development is fully
financed through R320 million (£21,3 million)
of project debt facilities provided by the IDC,
Tiffany & Co subsidiary Laurelton Diamonds
and DiamondCorp convertible bonds.
DiamondCorp has a 74 % stake in Lace,
with the balance being held by its BBBEE
partners, Shanduka Resources and Sphere
Investments.
Lace block cave development progressing well
