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Botswana Diamonds digs up first stones at South African mine

15/01/2020
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Botswana Diamonds digs up first stones at South African mine
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Botswana Diamonds (LON:BOD) said Tuesday that it recovered the first diamonds from plant commissioning activities on its Marsfontein mine in Limpopo, South Africa.

The announcement comes only days after it received a mining permit for diamond-bearing gravels and residual unprocessed stockpiles around the operation.

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Chairman John Teeling said the plant was very close to reaching full operations following the installation of an in-field screen, two rotary pans, grease and x-ray recovery system.

Diamonds were recovered from residual unprocessed stockpiles and bearing gravels surrounding the company’s Marsfontein mine in Limpopo

“I am delighted with the rapid progress the team has
made on-site and it is noteworthy that the first diamonds were recovered within
two weeks of the mining permit being granted,” Teeling said.

The Marsfontein mine was operated for two years in the late
1990s, with a payback of its entire development costs in less than four days.
The mine’s grade was 172 carats per hundred tonnes, at a bottom cut-off of more
than 1.2 mm, containing many fancy coloured diamonds.

The surrounding deposits in question were overlooked when
the mine was closed.

Diamond miners are struggling across the board, especially those producing cheaper and smaller stones where there is an over-supply in the martket. 

Buyers, those that polish and cut
diamonds for retailers, have been hit this year by lower prices and tighter
credit, prompting them to delay purchases.

Retailer Tiffany’s reported in
August a 3% decline in like-for-like sales, while shares in Signet, the
world’s largest retailer of diamond jewellery, have lost more than 60% of their
value this year.

De Beers, the world’s top diamond producer by value, has responded by axing production — with a target of 31 million carats this year compared with 35.3 million in 2018.

It has also announced it would spend more on marketing. At the latest sale, the company increased the amount of stones buyers were allowed to reject in each lot purchased from 10% to 20%, according to people familiar with the auction.

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