Lesotho May Offer Prospect for European Diamond Miner After Feasibility Studies
CAPE TOWN (Business Day) -- Diamond development and exploration company European Diamonds [AIM:EPD] could take a decision by the middle of next year to proceed with a new diamond mine in Lesotho.
CEO Roy Spencer said in an interview on the sidelines of the Mining Indaba in Cape Town this week that the company would raise debt and equity finance if it decided to build a new mine and plant at the Liqhobong mine in Lesotho - depending on the outcome of the feasibility study under way.
Liqhobong is one of only two diamond mines in Lesotho. The other is the Letseng Diamond Mine which was recently acquired from JCI and Matodzi by Gem Diamonds.
Spencer said Liqhobong was first discovered in the 1960s by prospector Jack Scott who was working with De Beers.
It was not considered viable then but for 20 years it was worked by a local mining co-operative. Later, a company called Minegem bought the operation. Minegem hit a cash crunch in the early 2000s and merged with European Diamonds.
European Diamonds was founded by Spencer and Partners to explore Kimberlites in Finland. It still has those properties and hopes to build Europe's first diamond mine in time.
But in the next few years it has made the development of Liqhobong its flagship project.
Liqhobong consists of two pipes: the satellite pipe which has been the focus of activity to date, and the main pipe, which has been less accessible because it is a couple of metres below surface.
Spencer said Liqhobong's satellite pipe started to produce diamonds for the company last year with an output of 55,000 carats up to December. Then an exceptional diamond of 27 carats was found at the main pipe and sold for $500,000 in Antwerp.
From now on, with the satellite pipe at full production, European Diamonds expects to sell about 20,000 carats every five weeks. From the end of next year it expects to start mining from the main pipe which is targeting 700,000 carats of diamonds a year within three years.
European Diamonds' production is being marketed in Antwerp by BHP Billiton [NYSE:BHP].
Asked whether Billiton, which has made no secret of its plans to grow diamond production, could take a stake in European Diamonds, Spencer said: "If a price is right we would not reject an opportunity."
Article from http://www.resourceinvestor.com/
Our price is right. Hire a gem of a car at http://www.southafrica-carhire.com
CEO Roy Spencer said in an interview on the sidelines of the Mining Indaba in Cape Town this week that the company would raise debt and equity finance if it decided to build a new mine and plant at the Liqhobong mine in Lesotho - depending on the outcome of the feasibility study under way.
Liqhobong is one of only two diamond mines in Lesotho. The other is the Letseng Diamond Mine which was recently acquired from JCI and Matodzi by Gem Diamonds.
Spencer said Liqhobong was first discovered in the 1960s by prospector Jack Scott who was working with De Beers.
It was not considered viable then but for 20 years it was worked by a local mining co-operative. Later, a company called Minegem bought the operation. Minegem hit a cash crunch in the early 2000s and merged with European Diamonds.
European Diamonds was founded by Spencer and Partners to explore Kimberlites in Finland. It still has those properties and hopes to build Europe's first diamond mine in time.
But in the next few years it has made the development of Liqhobong its flagship project.
Liqhobong consists of two pipes: the satellite pipe which has been the focus of activity to date, and the main pipe, which has been less accessible because it is a couple of metres below surface.
Spencer said Liqhobong's satellite pipe started to produce diamonds for the company last year with an output of 55,000 carats up to December. Then an exceptional diamond of 27 carats was found at the main pipe and sold for $500,000 in Antwerp.
From now on, with the satellite pipe at full production, European Diamonds expects to sell about 20,000 carats every five weeks. From the end of next year it expects to start mining from the main pipe which is targeting 700,000 carats of diamonds a year within three years.
European Diamonds' production is being marketed in Antwerp by BHP Billiton [NYSE:BHP].
Asked whether Billiton, which has made no secret of its plans to grow diamond production, could take a stake in European Diamonds, Spencer said: "If a price is right we would not reject an opportunity."
Article from http://www.resourceinvestor.com/
Our price is right. Hire a gem of a car at http://www.southafrica-carhire.com
Labels: South Africa - Investment
