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Company argues of “substantial” progress made
Paragon Diamonds Limited, the AIM quoted diamond development and production company, has issued audited final results for the six months to the 30 June 2014.
Overview:
* Substantial progress made towards building a cash generative diamond
production company with a portfolio of multi-stage projects located in
known diamondiferous regions of Africa
* New strategy focused on building a leading vertically integrated diamond
production and investment company – retaining ownership of the journey of a
stone from the ground to the high street to ensure value is retained for
our shareholders
* On course to commence Stage 1 (two year) production early 2015 and
generating first revenues of US$9m per annum at the open pit Lemphane
Kimberlite in Lesotho – 20,000 carats targeted with an estimated average
value of US$930 – US$1,025 per carat
* Positive independent modelling report for Lemphane issued June 2014
*
+ +100 carat diamond expected per million tonnes processed
+ 12% of carats exceeding 9 carats
+ Conservative grade of 2cpht used as modelling basis
+ Grade and value to rise as tonnages processed increased
* Secured the award of a 10 year Mining Lease at Lemphane which is renewable
for a further three consecutive 10 year periods
* Pipeline of highly prospective projects representing future development
potential:
*
+ 85% owned high-grade Motete Kimberlite dyke in Lesotho which has a
resource of 1.56Mt at 65cpht for 1M carats
+ Kaplamp project in Zambia which hosts 14 Lamproite pipes within a
well-known diamondiferous region
+ Acquired 442 sq km licence in the prospective Tsabong Kimberlite field,
Botswana
* Strengthened the Board with the appointment of Philip Sant Falzon Manduca –
pioneer in the European hedge fund industry to lead Paragon’s development
into a vertically integrated diamond company
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. The recent independent size frequency and revenue modelling report provides a third party assessment of what we can expect from Stage 1, which will involve 1 million tonnes of ore mined. According to the report, Stage 1 is expected to result in the recovery of over 100 diamonds larger than 9 carats, including stones up to 100 carats in size. Over the entire resource of 48.6Mt of kimberlite that has been delineated to date, 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. 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.”
