BlueRock Diamonds PLC Trading Update (3992U)

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RNS Number : 3992U

BlueRock Diamonds PLC

18 January 2017

BlueRock Diamonds plc

("BlueRock" or "the Company")

18 January 2017

Trading update

BlueRock is pleased to give the following update on operations at Kareevlei, its licence area in the Northern Cape of South Africa containing five known kimberlite pipes. Over the last few months the Company has been working on completing the plant upgrade and establishing a drill and blast programme in order to recommence mining operations. This work is progressing in-line with budget and it is expected that the processing of Run of Mine material will recommence in early February 2017.

Processing plant

The planned work on the processing plant is now complete. This work, which took place during the last six weeks of 2016, included a thorough overhaul of the main components of the plant, which is expected to increase the capacity and efficiency of the plant. Testing of these upgrades started in December 2016 and is now largely complete.

Primary Circuit

The new primary crusher, which is expected to reduce our processing costs significantly, is now onsite and the pre-screening circuit is being delivered this week. The installation of these elements is expected to be completed by the end of January 2017.

New Contractor

African Mining and Crushing, our new contractor responsible for Drilling & Blasting and Loading & Hauling are now onsite and preparing for the next blast which is expected to take place during the week commencing 23(rd) January 2017. This is the first of a planned series of blasts that are designed in order to supply a consistent source of Run of Mine material for processing.

Water Supply

The drought conditions in the Northern Cape have at least temporarily broken in the last four weeks. There has been significant rain at Kareevlei and the water table has recovered. This is very welcome for the water requirement of the plant in the short and medium term although it does present operational problems regarding safe access to some areas of the mine and has the potential to impact on the timing of recommencement of operations though this is not currently anticipated.

Adam Waugh, CEO commented:

"We have made good progress since our last update on 22(nd) November 2016. Our operation is now fully compliant with the requirements of the Department of Mineral Resources and the Section 54 closure notices have now been lifted. We will continue to test the changes made to the plant over the next few weeks on low grade stockpiles. The next blast is scheduled for later in January which is expected to provide good quality Run of Mine material ready for the completion of the new primary crushing and screening circuit. 2016 proved to be a difficult year for BlueRock Diamonds but we have entered 2017 with cautious optimism."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 
 Enquiries: 
 BlueRock Diamonds                    SP Angel Corporate 
  plc                                 Finance LLP 
  Adam Waugh, CEO                     Nominated Adviser & 
  [e-mail]       Broker 
                                      Stuart Gledhill / Lindsay 
                                      Mair 
                                      [phone] 
 
 

About BlueRock Diamonds plc (AIM: BRD)

BlueRock is a diamond mining company with activities in the Kimberley region of South Africa. BlueRock owns a diamond processing plant and the mining right over the Kareevlei Tenements in South Africa.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 18, 2017 02:00 ET (07:00 GMT)