REG - BlueRock DiamondsPLC - Expansion Project Update

Bluerock DiamondsAnnouncement

09/11/2021 10:30

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RNS Number : 8015R  BlueRock Diamonds PLC  09 November 2021

BlueRock Diamonds PLC / AIM: BRD / Sector: Natural Resources

9 November 2021

BlueRock Diamonds PLC ('BlueRock' or the 'Company')

Expansion Project Update

 

BlueRock Diamonds PLC, the AIM listed diamond producer, which owns and
operates the Kareevlei Diamond Mine ('Kareevlei') in the Kimberley region of
South Africa, is pleased to announce an update with regards to its
transformational 1 million tonne per annum ('Mtpa') expansion project.

 

Overview

·    Successfully operated all key areas of the upgraded plant at design
capacity on a short-cycle basis during the hot commissioning phase

·    Positioned to meet FY21 guidance target of 22,000 to 26,000 carats
having produced 19,362 carats as at 3 November 2021

 

BlueRock Executive Chairman, Mike Houston, said, "We remain confident of
achieving our targeted guidance; at 3 November 2021 we had produced a total of
19,362 carats during the year with a further seven weeks of production
available to the year end.  Significant cost and operating efficiency
benefits are anticipated once the new plant is running at capacity."

 

Details

The Company is focused on completing an expansion project aimed at increasing
tonnages at Kareevlei to provide the economies of scale to turn the mine into
a highly cash generative asset.   Having run all key areas of the plant at
design capacity on a short-cycle basis during the hot commissioning phase, the
team has been making minor modifications to the processing circuit on both
lines to adjust to the higher volumes and mix of ore.

 

As noted in its Q3 production update (see RNS dated 13 October 2021), the
Company planned to continue to operate the old plant until it was confident
that the first line of the new plant was functioning at design capacity on a
sustained basis.   Using this configuration, volumes in excess of 3,000
tonnes a day have been achieved, which would be sufficient to achieve the
Company's target of 1 Mtpa.  The move to operating both new lines should
increase volumes further and reduce costs towards target levels.

 

Given the volumes that the Company is achieving using the current
configuration, the old plant will now operate alongside Line 1 until the new
plant has been completely debugged in order to maximise production levels over
the next couple of months.  This both ensures that the Company is well
positioned to meet guidance of 22,000 to 26,000 carats produced for the year
ended 31 December 2021, while also maximising cash inflow in a situation where
the Company is carefully managing limited cash resources having recently
repaid half of the convertible loan note originally issued in 2014 amounting
to £462,500 in accordance with its revised agreed terms.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

 

**ENDS**

 

For further information, please visit BRD's
website www.bluerockdiamonds.co.uk (http://www.bluerockdiamonds.co.uk/)  or
contact:

 

 BlueRock Diamonds PLC

 Mike Houston                           mhouston@bluerockdiamonds.co.uk

 David Facey, FD                        d.facey@bluerockdiamonds.co.uk
 SP Angel (NOMAD and Broker)

 Stuart Gledhill / Caroline Rowe        Tel: +44 (0)20 3470 0470
 St Brides Partners Ltd (Financial PR)

 Isabel de Salis / Susie Geliher        Tel: +44 (0)20 7236 1177

 

Notes to editors:

BlueRock Diamonds is an AIM-listed diamond producer which operates the
Kareevlei Diamond Mine near Kimberley in South Africa which produces diamonds
of exceptional quality and ranks in the top ten in the world in terms of
average value per carat. The Kareevlei licence area covers 3,000 hectares and
hosts five known diamondiferous kimberlite pipes with a combined inferred
resource of 10.4 million tonnes / 516,200 carats (February 2021); based on its
planned production of 1 million tonnes per annum, this provides a minimum
10-year life of mine.

 

 

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