REG - BlueRock DiamondsPLC - Update & Sale of Two Large Diamonds

Bluerock DiamondsAnnouncement

04/08/2022 08:15

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RNS Number : 9144U  BlueRock Diamonds PLC  04 August 2022

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

4 August 2022

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

 

Operational and Corporate Update & Sale of Two Large Diamonds

 

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 and the sale of two large stones in the July
2022 tender for a total of US121,716.

 

Overview

·    Weather improvements support a marked increase in production, with
just under 70,000 tonnes produced in July (June: 57,000 tonnes)

·    Overall development mined tonnes improving with drier conditions;
whilst it remains behind target year to date, impacting on both the quality of
ore and the grade, it is anticipated that the grade will be back to 4cpht in
September 2022

·    High level operational review by Teichmann Group and ex-De Beers team
identified opportunities for improvement, including minimising weather
impacts, which are now being assessed

·    Improved access to better quality kimberlite is resulting in an
increase in the recovery of larger stones, with two large diamonds sold for a
total of USD121,716 in the July tender

·    Teichmann Financing update

o  Circular in relation to previously announced Teichmann financing expected
to be published shortly

o  issue of the initial SLN expected to complete shortly subject to
finalisation of outstanding conditions - Teichmann Group have been providing
working capital to Kareevlei ahead of completion

 

Mike Houston, Executive Chairman said, "I am pleased to report that with drier
weather conditions, the new plant is showing a marked improvement with July
production just under 70,000 tonnes, up from 48,000 tonnes and 57,000 tonnes
in May and June respectively. The overall development mining tonnes, although
improving, remains behind target year to date and this is impacting on both
the quality of ore and the grade. Nonetheless, we are seeing a steady upward
movement in the grade, and we are confident that the grade will be back to
 approximately 4cpht from September 2022. As stated in our Q2 production
update, the Teichmann Group, with the support of an ex-De Beers technical and
commercial team had carried out a high-level review of the operations and we
are now in receipt of their recommendations. There appears to be a number of
good opportunities to both improve and de-risk the Kareevlei operation,
particularly in poorer weather conditions, and these are being reviewed with
additional investigatory work being completed. I look forward to reporting on
the outcomes in the near future.

 

"In tandem with increased production, we are delighted to announce the sale of
two large diamonds for a total of USD121,716 in the July 2022 tender and
importantly averaging over $9,000 per carat. With the improving access to
better quality kimberlite, we are also seeing an increase in the recovery of
larger stones.  While the market has stabilised since the exceptionally
strong first quarter, high quality rough diamonds remain in demand;
Kareevlei's diamonds tick this box and accordingly, our average price remained
robust at USD607 per carat for the year to date."

 

Figure 1: Kareevlei Mine Production

 

Table 1: Large stones recovered in 2022

 Date sold 2022  Carats  Value    Value per carat USD000

                         USD000
 July            5.97    55       9
                 7.4     67       9
 March           19.3    116      6
                 12.7    128      10
                 8.7     104      12
                 6.6     63       9.5
 February        11.9    211      17.6
                 8.3     96       8.3
                 13.6    78       5.8
                 7.5     75       10
 January         6.8     63       9.3

Note: It is Company policy to announce all stones sold with a value of in
excess of USD50k.

 

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 / 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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