BlueRock Diamonds PLC, the AIM listed diamond producer, announces an update with regards to operations at its Kareevlei Diamond Mine (‘Kareevlei’) in the Kimberley region of South Africa.
Further to the announcement dated 15 November 2021 and following discussions with the Department of Mineral Resources and Energy (the ‘DMRE’), commissioning and processing at the new plant recommenced yesterday (18 November 2021), the old plant has been closed and the transfer and fitting of two pans from the old plant to Line 2 on the new plant has commenced. The crushing circuit and Line 1 of the new plant were operating at near design capacity, and it is expected that both lines of the new plant will be operational within the next two weeks. As part of the commissioning and a build up to full production, the Company is utilising ore stocks that have been built up pre the rainy season.
Due to the availability of run of mine ore, processing can continue notwithstanding the current suspension of mining activities and the shutdown is not currently expected to alter the guidance for the year ended 31 December 2021 of between 22,000 and 26,000 carats produced, although this is likely to be at the lower end of the guidance. The suspension has impacted near term cashflow expectations, exacerbated by the fact that there is no planned diamond tender in Kimberley in December 2021. The Company is assessing how best to meet its working capital needs over this period including the potential to finance December 2021 production through its existing relationship with Delgatto Diamond Finance LLP subject to progressing certain administrative matters.
The Company remains in discussion with the DMRE in relation to the issues raised regarding BlueRock’s mining activities that remain suspended and hopes to resolve these in the near future. Further updates will be provided in due course.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’). Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
For further information, please visit BRD’s website www.bluerockdiamonds.co.uk or contact:
BlueRock Diamonds PLC
David Facey, FD
Notes to editors:
BlueRock Diamonds is an AIM-listed diamond producer which operates the Kareevlei Diamond Mine near Kimberley in South Africa which produces diamonds of exceptional quality and ranks in the top ten in the world in terms of average value per carat. The Kareevlei licence area covers 3,000 hectares and hosts five known diamondiferous kimberlite pipes with a combined inferred resource of 10.4 million tonnes / 516,200 carats (February 2021); based on its planned production of 1 million tonnes per annum, this provides a minimum 10-year life of mine.
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