BlueRock Diamonds PLC Operational Update and Appointment (1282T)
10 October 2017 - 5:00PM
UK Regulatory
TIDMBRD
RNS Number : 1282T
BlueRock Diamonds PLC
10 October 2017
10 October 2017
BlueRock Diamonds PLC
("BlueRock" or the "Company" or "BRD")
Operational update and appointment of consultant geologist
Kareevlei operations break even in September
BlueRock Diamonds plc, the AIM listed diamond mining company,
which owns and operates the Kareevlei Diamond Mine in the Kimberley
region of South Africa ("Kareevlei") announces an operational and
financial update, the appointment of a consultant geologist and the
results of the first stage of bulk sampling at Jubilee.
Operational and financial update
Production in September continued to improve, reaching 22,010
tonnes up from 20,929 tonnes in August. As a result of the
production achieved, the increased grade and the recent reduction
in operating costs, the Board is pleased to announce that its
Kareevlei operations broke even in September 2017 at the operating
level (based on unaudited management accounts before intercompany
charges).
Production in early October has been disrupted by rain and,
therefore production volumes in October may be somewhat lower than
September. Nevertheless, the Company remains on track to start
processing the first of the Level 2 kimberlite in October, from
which it expects a further improvement in grade. This Level 2
kimberlite production is not expected to be included in the October
diamond tender, the results from which are expected at the end of
October.
Appointment of consultant Geologist
The Company is pleased to announce the appointment of Jock Robey
as consultant geologist. Jock is a Fellow of the Geological Society
of South Africa and has a PHD from the University of Cape Town.
Jock worked for De Beers as a kimberlite petrologist specialising
in kimberlite mapping logging and petrology. Jock, who consults to
De Beers, Petra Diamonds and Gem Diamonds will be advising the
Company on the development strategy for its current licence area at
Kareevlei and on identifying and evaluating other suitable
kimberlite opportunities to pursue.
Jubilee
The Company has completed the first stage of its bulk sampling
at Jubilee which comprised processing 480 tonnes of kimberlite
excavated from 10m below surface level. 4.75 carats were recovered,
with the largest diamond being 1.65 carats. In total, 11 diamonds
were recovered, all of which were of high gem quality. The Board
together with its advisers is considering how best to proceed with
this project. It should be noted however, that this size sample is
too small to provide any meaningful guide as to the likely grade of
Jubilee.
Adam Waugh, Chief Executive Officer of BlueRock Diamonds,
commented: "I am delighted to say that as a result of the increased
volumes and improved grade, we were able to break even at an
operational level at Kareevlei in September.
"Although delays, caused primarily by rain, mean that we are
unlikely to achieve the same volumes this October that we achieved
in September, we still expect to start processing Level 2
kimberlite this month as planned, which we expect will yield higher
grade than the Level 1 kimberlite processed to date.
"I am also very pleased to have Jock on board; his skills,
expertise and past experience in the industry will be invaluable as
we look to progress our Kareevlei licence area and explore
opportunities going forward."
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.
For further information, please contact:
BlueRock Diamonds plc
Adam Waugh, CEO
awaugh@bluerockdiamonds.co.uk
SP Angel (NOMAD and Broker)
Stuart Gledhill / Lindsay Mair
+44 (0)20 3470 0470
Yellow Jersey (PR and IR)
Georgia Colkin / Joe Burgess / Katie Bairsto
+44 (0)7825 916 715
About BlueRock Diamonds plc (AIM: BRD)
BlueRock is a diamond mining company with activities in the
Kimberley region of South Africa. BlueRock own a diamond processing
plant and the mining right over the Kareevlei Tenements in South
Africa.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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