DiamondCorp Sells Diamonds From Lace Mine for $600,000

(IDEX Online) – DiamondCorp has sold 5,116.6 carats from Lace Diamond Mines (Pty) Ltd recovered before it was placed in business rescue.

The parcel, comprised of run of mine production with five stones larger than 10 carats and the largest stone being a 19.43-carat non-gem diamond,was sold in Johannesburg.

The firm said that all the larger goods were either non-gem, or contained carbon inclusions or cracks which resulted in reduced valuations.

"Nonetheless, all reserve prices were exceeded and the diamonds were sold for $590,744.86, representing [an average price of] $115.46 per carat.

"In the size fractions (+7 sieve size) up to 5 carats in size, prices achieved were comparable or better than achieved throughout the year. In the smallest size fractions (-7 sieve size) prices were weaker. All sales proceeds have now been received.

"As a result of this sale, the average carat value achieved for the year has fallen to $146/ct, 11% lower than the $164/ct forecast average. While a proportion of this fall is the result of the weaker market in the lowest size fractions, it is largely the absence of high-quality gems amongst the larger stones in the last two sales. One large gem could just as easily swing the average the other direction," the firm said.

DiamondCorp was issued with a Section 54 shut down notice on underground operations at its Lace diamond mine in the Free State province in South Africa in October.

The notice was issued by the South African Department of Mineral Resources (DMR) and relates to a fire on a dump truck which was extinguished without injury.

The instructions issued by the DMR included a request for an "external ventilation audit team to inspect the mine for smoke and other gases".