British-based global miner Gem Diamonds in its quarter report said ramp-up of its newly opened Ghaghoo mine was progressing well with the first production at the Botswana operation to occur in February 2015.
“The official opening of the Ghaghoo mine was an important milestone for the Company. We are pleased to have completed the construction of the mine on time and within budget and to have overcome the challenges posed by developing a decline through some 80 meters of sand,” commented Gem Diamonds CEO Clifford Elphick in a statement on Thursday.
Letseng performance
The company announced a strong operational performance in the third quarter at its second operation in the Letseng mine in Lesotho in Southern Africa.
“The two Letseng tenders conducted during this Period saw an improvement in the dollar per carat prices achieved when compared to the prior quarter,” said Elphick.
At Letseng, Gem recovered 28 365 carats in Q3 2014 with average value of $2 603 per carat.
$10.6mn sale of diamond
The company successfully sold an ‘exceptional’ 197.6 carat diamond it recovered in July 2014 for $10.6 million.
At the Ghaghoo mine, which was opened by Botswana’s President Seretse Khama on 5 September this year, a total of 4 028 carats were recovered at the end of the period 30 September.
Ghaghoo development
The first four production tunnels were being developed, while final sealing operations to manage major ingress of water is underway.
Work continues with minor refinements to the treatment plant in readiness for full production, reported Gem.
In March 2014, Gem Diamonds’ Board of Directors announced its intention to pay a maiden dividend to shareholders based on the 2014 financial year results.
The group remains on track to meet this objective, reported the company.
