Aug 20, 2017 Last Updated 10:14 AM, Aug 18, 2017

High-value production to begin at Paragon Diamonds’ Lesotho operation

Paragon Diamonds’ (LSE: PRG) management is looking to begin producing large, high-value diamonds in order to build a top-class diamond company.


The production is set to commence in early 2015 at the Lemphane Kimberlite operation in Lesotho.

Paragon Diamonds plans to manage the journey of the stones from the ground to the high street, in order to ensure that its shareholders preserve maximum value.

Stage 1 is set to commence in 2015 and will be in operation for two years.

Initial revenue at the Lemphane Kimberlite Mine is expected to be around US$9 million per annum where production of 20,000 carats, with an estimated average value of $930-1,025 per carat, has been targeted.

The company has secured a renewable 10-year mining lease at Lemphane.

Paragon Diamonds CEO Stephen Grimmer said: “Having secured a mining lease during the period and with infrastructure already in place at the site, our immediate focus is to secure a processing plant so that we can commence Stage 1 production at our flagship Lemphane pipe in Lesotho in the near term.”

Stage 1 is expected to mine 1 million tonnes of ore and result in the recovery of more than 100 diamonds larger than nine carats.

“The report indicates the recovery of diamonds of over 300 carats in size, up to 50 diamonds in excess of 100 carats and 175 diamonds in excess of 50 carats,” said Grimmer.

“These numbers are consistent with those being achieved at the nearby deposit of Letseng, and if achieved would see Lemphane added to the list of world class kimberlite pipes in Lesotho.”

Price of gold rebounds following airstrikes in Syria

The price of gold has rebounded from an eight-month low following airstrikes in Syria.

Airstrikes were launched against Islamic State positions in Syria by the United States and its Arab allies.

Demand for the metal increased and the price of gold for December delivery rose by 0.3% to US$1,222 an ounce.

The US Mint recorded sales of gold coins reaching 43

200 ounces so far for this month, topping August’s total by 73% and making for the best month since June.


Kefi announces updated gold estimations

An updated probable ore reserve at the Ethiopia-based Tulu Kapi project has been announced by Kefi Minerals (LSE: KEFI).

The JORC-compliant ore reserve estimation stands at 12.9 million tons containing 2.41 grams of gold per ton, for one million ounces of gold.

Following modelling of the mineralisation and metallurgical test work, it was decided that conventional carbon-in-leach extraction could be used to produce the gold.

Kefi CEO Harry Anagnostaras-Adams said: “The independent verification of the one-million-ounce Tulu Kapi reserve complements our recently published production, cost and valuation estimates and completes the independent substantiation of Kefi’s overhaul of the Tulu Kapi gold project.

“With the achievement of this latest milestone, we are on track for starting project development in the first half of 2015.”

Kefi will apply for the mining licence this month.


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