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DiamondCorp reports massive extension to J-12 kimberlite target

DiamondCorp (LON:DCP, JSE:DMC) has announced a massive increase to the size of the J-12 exploration target in Borswana from 15 hectares (ha) to 45ha, following the reprocessing of geophysical data from the PL71 Prospecting Licence, which covers the Jwaneng South project area. The company said that it has also better defined a 4ha target at J-05.

The two areas, J-12 & J-05, will both be tested in the upcoming six-hole drilling programme, due to commence in August, targeting diamondiferous kimberlites.

The company highlighted that the size of the newly extended J-12 geophysical target is comparable to the nearby De Beers Jwaneng pipe, the richest diamond mine in the world by value, which is located 9km to the north-west. According to DiamondCorp, Jwaneng was a 54ha pipe at the surface when mining commenced and now it produces between 12.5m and 15m carats per annum.

“We are excited by the significant increase in the size potential of the geophysical target at J-12, and we look forward to reporting drill results from both J-05 and J-12 over the coming months,” DiamondCorp MD and chief executive Paul Loudon commented.

“The 10ha diamondiferous kimberlite we have intersected at J-01, and the targets at J-05 and J-12, each have the size potential to host a large open pit diamond mine if grade and carat value prove economic.” 

After the August drilling program, the results will be combined with November’s results from drilling at the J-01, 10ha kimberlite. The combined data will determine the priorities for large diameter drilling and bulk testing across the PL71 license area. The large diameter drilling will be designed to determine an indicative grade and diamond value for the kimberlites within the prospect area.

DiamondCorp also told investors that PL71 has now been renewed by the Botswana Department of Minerals, Energy and Water Resources, for a further two years. Under the terms of the renewal, DiamondCorp has made a statutory 50% reduction in the licence area, from 61km2 to approximately 30km2.

DiamondCorp is earning into a 77.5% stake in PL71, from Geoperspectives Pty Ltd, by completing a definitive feasibility study on at least one kimberlite by June 2014. The company noted that, after assessing existing exploration data, it has relinquished its rights to earn into prospecting licences PL59 and PL60, in order to concentrate on PL71 and the Jwaneng South project.

Elsewhere, in relation to its underground development project, the Lace Mine in South Africa, DiamondCorp told investors that, approximately 200m of decline development has now been completed since work restarted in April.

The company highlighted that the development, to date, has been completed within budget, the decline size has been increased to 4.5m x 4.5m, and work is now progressing around-the-clock with a 24-hour three shift rotation. Furthermore, DiamondCorp said that “the rate of advance will increase during July as a third LHD is re-commissioned and second 25-tonne low profile dump truck is brought into service”.

In total, 800m of decline development needs to be completed to access kimberlite at the -240m level, and is scheduled to be completed by the end of 2010.