REG - BlueRock DiamondsPLC - Operations and Corporate Update

Bluerock DiamondsAnnouncement

15/12/2022 07:00

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RNS Number : 8157J  BlueRock Diamonds PLC  15 December 2022

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

15 December 2022

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

Operations and Corporate 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, announces an update on operational and corporate activity.

 

Operations Update

Overview

The results of the two-month test to determine the realistic capacity of the
Kareevlei plant, which commenced in mid-October and was carried out with the
assistance of mining and processing specialists, confirmed that production of
marginally below 90,000 tons per month is achievable which is in line with
previous guidance. Of more importance is confirmation that the plant was not
affected to any significant extent by wet weather experienced in October and
November, provided that sufficient ore is available. Replacement of the grids
and other components in the plant should increase throughout and improve
reliability and quality (size) of diamond production.

 

Mining focused on the KV2 pit at Kareevlei. Ore mined was the highest in two
years, however the strip ratio decreased to 1 from 4.30 YTD. This should
increase with further development work to be undertaken on KV1 and KV3.

The mining and processing activities are being reviewed with the assistance of
independent specialists and will be used in the planning and budget process
currently in progress.

A detailed cost review identified opportunities to reduce costs, and these are
being implemented, as are enhanced security and supervision, further detail on
which is included below.

Production and Market

Diamond prices have reduced during the quarter, although this has been
partially offset by higher production, albeit at a lower average grade.
Development of KV1 is planned for the new year.

Recent production in October and November yielded an average grade of 4.4
cpht, with the largest stone of 10.2 carats. Historically, the Board has
updated the market upon the discovery of large stones with an indicative
initial valuation of over $100,000. However, to reduce uncertainty about
potential revenue and the value of tenders the Board has revised the Company
policy regarding announcements of diamond stones and going forward will only
announce stones which have realised in excess of $50,000 on tender. There will
be announcements for materially significant stones where appropriate.

 

 

The following significant stones were sold as part of the November tender:

 Stone size - carats  $/carat    Value $
 10.19                10,001.00  101,947.00
 8.77                 7,753.00   68,000.00
 8.59                 9,892.00   85,000.00

 

Security

Security throughout the mine site has been enhanced with the introduction of
an independent contractor. During November an attempted heist of diamonds,
which were being transported from the mine to Kimberley, was intercepted.
There was no loss or injury to people, equipment or stock.

Outlook

The focus remains on improving the performance of the mine and the plant.

Adequate funding for the operations of both BlueRock Diamonds and Kareevlei
Mining, and potential capital expenditure, is a priority and is being assessed
in conjunction with the review of activities at the mine.

The Company expects to provide an update on production for the full year in Q1
2023.

 

Corporate Update

Loan note - M Poole and T Leslie

Further to the update given on 22 November 2022, the Company has not yet
reached an agreement for the repayment of the loan note, which was due on 16
October 2022.

 

The Company will provide further updates as appropriate.

 

Kareevlei facility - Teichmann South Africa ('TSA')

Further to the update given on 22 November 2022, the indebtedness from the
Company to TSA was approximately R55 million at the end of November 2022, R25
million in excess of the agreed facility limit of R30 million for the first
six months from 15th August 2022, to reduce to R20 million thereafter. The
last payment to TSA was in August 2022.

TSA has not exercised its rights in the event of breach and there are ongoing
discussions with TSA to obtain further support to enable Kareevlei to continue
operating.

 

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 BlueRock's website
www.bluerockdiamonds.co.uk or contact:

 

 BlueRock Diamonds

 Victor Dingle, CEO                     v.dingle@bluerock.co.uk
 SP Angel (NOMAD and Broker)

 Stuart Gledhill / Harry Davies-Ball    Tel: +44 (0)20 3470 0470
 St Brides Partners Ltd (Financial PR)

 Isabel de Salis / Charlotte Page       bluerock@stbridespartners.co.uk

 

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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