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DiamonEx Limited (ASX:DON) AIM
RELEASE
22 August 2008
LERALA DIAMOND MINE COMMISSIONING UPDATE
- Plant commissioning now complete
- Diamond recovery has commenced
- Plant currently processing over 100 tonnes per hour
- Full production of 200 tonnes per hour and Name Plate handover
expected end Q3/early Q4
- First diamond sale expected September
DiamonEx Limited (ASX/AIM/BSE "DON"), the emerging diamond producer
in Botswana, announces that Plant commissioning at its Lerala Diamond
Mine Processing Plant ("Plant") is complete, and recovery of diamonds
has commenced.
The Plant is currently operating at approximately 100 tonnes per
hour, with a programme to get to the full production target of 200
tonnes per hour over the coming months.
The Plant has performed well in the commissioning phase with expected
teething problems, as well as minor disruptions. There has been one
major issue in the Plant design to emerge out of commissioning,
relating to the performance of the Pan Plant.
The Plant recovers diamonds through dense media separation ("DMS").
The Plant has however, also been designed with Pans to create a
pre-concentrate of fine crushed ore which is sent direct to the DMS
for diamond recovery, while the remainder of the ore is sent back to
the tertiary crusher for re-processing before entering the DMS. The
utilisation of both Pans and DMS in this fashion is quite unique. Not
only does this reduce the capital cost of the Plant by reducing the
size of the DMS, but most importantly it maximises diamond recovery
by minimising loss. This is a new system, and despite unscheduled
delays in the commissioning process, the Pans are now working to
expectation, enabling the Company to begin to ramp to the full
production target.
Other delays in commissioning included power supply disruptions from
the Plant's diesel generators which delayed commissioning by
approximately ten days. This issue has since been resolved.
The Company has commenced the recovery of diamonds but it will not
have a parcel of sufficient size to justify a sale in August.
Therefore, the Company has decided to postpone the first diamond sale
to the end of September. August historically achieves the lowest
average prices for rough diamond sales, and as a result the Company
is likely to achieve higher prices in a more competitive bidding
environment in September.
Managing Director, Dan O'Neill, said, "As can be expected we have had
to confront a number of issues during the commissioning process. All
the issues to date have been resolved and we are pleased to announce
recovery of diamonds has commenced. Commissioning of the Plant is now
complete and the Company is now focused on ramping up to full
production of 200 tonnes per hour and improving our rate of diamond
recovery".
For and on behalf of the Board
Paul Crawford
Company Secretary
For further information contact:
Dan O'Neill
Managing Director
Tel: +61 7 3720 8944
Mob: +61 407 596 942
Email: diamonex@diamonex.com.au
Mark Gray
Corporate Development
Tel: +61 7 3720 8944
Mob: +61 412 899 979
Email: diamonex@diamonex.com.au
Will Souter or Rob Adamson
RFC Corporate Finance Ltd (Nomad)
Tel: +61 2 9250 0050
+61 2 9250 0041
Email: will.souter@rfc.com.au
rob.adamson@rfc.com.au
Richard Hail
Fox-Davies Capital Ltd (AIM Broker)
Tel: +44 20 7936 5200
Email: Richard.Hail@fdcap.com
Jos Simson or Leesa Peters
Conduit PR - Investor Relations
Tel: +44 20 7429 6603
+44 78 9987 0450
Email: jos@conduitpr.com
About DiamonEx:
DiamonEx is an emerging diamond producer having developed a 330,000
carat per year diamond mine at Lerala, in eastern Botswana. The mine
is 100% owned and is located in an area that produces up to 30% of
the worlds diamonds by value. The company also owns 15,000 sq km of
mineral rights in Botswana which it is actively exploring for
diamonds, as well as a 9.3 hectare diamondiferous kimberlitic pipe in
northern Colorado, USA, which it is currently evaluating for grade
and value. DiamonEx is listed on the Australian Stock Exchange
(ASX), the Alternative Investment Market in London (AIM), and the
Botswana Stock Exchange (BSE).
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DiamonEx Limited
http://www.diamonex.com.au/
ISIN: AU000000DON1
Stock Identifier: AIMX.DON
