By: Creamer media

The recovery of about 45 ct of diamonds, comprising 89 diamonds, from the processing of 100 t of in-field screened material, marks a significant step towards DBM becoming a self-sustaining, cash-generative operation, Kazera says.

It points out that the recovery rate is about three times higher than what the company had initially forecast.

Further, with diamond sizes averaging about 0.5 ct, compared with the average of about 0.4 ct typically recovered in the area, Kazera expects to benefit from a premium generally commanded by larger diamonds. Consequently, the realised value per carat on sale is expected to be about $100 higher than the group had previously expected.

"This is a landmark moment for both DBM and Kazera. Our investment in new technology has already delivered results that substantially exceed management expectations. With a significant and continually replenished stockpile ready for treatment, we now have a clear pathway towards regular diamond sales and revenue.

"We expect our diamond operation to now progress from being a 'nice to have' into a major revenue generator in its own right. The on-site team has worked tirelessly to achieve this milestone and I wish to thank them for their efforts. I am confident we are now well positioned to unlock the full potential of this exciting diamond asset," says Kazera CEO Dennis Edmonds.

The DBM project is processing a substantial stockpile of diamond-bearing gravels generated as a by-product of the Walviskop heavy mineral sands operation, owned by Kazera's 70%-owned subsidiary Whale Head Minerals (WHM), in the area.

This stockpile is continually replenished through ongoing WHM operations and is expected to underpin regular future diamond sales.