[miningmx.com] — ROCKWELL Diamonds is reaping the rewards of its
redrafted strategy, posting quarterly carat production increases of at least 50% –
compared to a year ago – across its asset base.
More importantly, growth in carat production has exceeded increases in volumes
output as Rockwell made hay of improved efficiencies at its operations.
Posting a fourth-quarter update for the period to end-February on Tuesday, Rockwell
said its output increased by 77% when compared to the same period of 2011,
totalling 4,022 carats. Although some 535 carats were accounted for by the newly
commissioned Tirisano mine, both Saxendrift (up 50%) and Klipdam (up 57%) showed
significant improvement. In the case of Klipdam, the increase in carats came
notwithstanding a 14% decrease in volumes output.
The group’s TSX-listed shares were up 6.25% at C$0.51 following the
announcement.
CEO James Campbell said the group expected improved recoveries going forward.
The bulk x-ray machine promised for Saxendrift was delivered after the end of the
fourth quarter; technology which Campbell said would significantly improve recoveries
on the back of improved security.
“We’re testing it first on the recovery of tailing, and I can tell you the initial results
are really encouraging,’ Campbell said, adding that the findings would be quantified
in a follow-up announcement within the next month.
The new Tirisano mine had a disappointing quarter though – carat production was
down two-thirds quarter-on-quarter at 535 carats – which Rockwell said was due to
low grades.
“Disappointing grades for the fourth quarter have been addressed by a number of
technical interventions,’ Rockwell said. “The mine plan has been adjusted to increase
throughput and grades, with early benefits emerging in the first weeks of the new
fiscal year.’
Klipdam outperformed, producing 1,990 carats, following an increase in grade.
“Our priority for the quarter was the continued implementation of fit-for-purpose
processing technology, as well as active management of the mine plans at our three
operational mines, to achieve our production improvements,’ Campbell said.
NEXT SET OF GOALS
Campbell said the next set of Rockwell’s objectives was the full commissioning and
testing of the bulk x-ray plant at Saxendrift and the continued ramp-up of Tirisano.
“Having made solid progress in fine-tuning our operations, we can now also start to
focus on our medium to longer-term growth strategy,’ Campbell said.
He said the acquisition of the Jasper mine, which is adjacent to Saxendrift, has the
potential to extend the life of mine. Rockwell is acquiring Jasper as part of a
restructuring of African Vanguard Resources’ vendor-financed black economic
empowerment transaction.
Campbell said the restructured deal would give Rockwell Diamonds an 8% BEE
shareholding at the JSE-listed level.
“The company is in active discussions with several BEE entities that are in a position
to fund their shareholding as well as their share of future and planned investments,’
Rockwell said.
The deal is anticipated to close at the end of May, and is subject to a due diligence
process that is already under way. Exploration at Jasper is planned to start in July.
Another aspect of Rockwell’s medium-term strategy is the re-optimising of the
Wouterspan asset’s feasibility study by including the use of the x-ray technology.
Campbell said this would start as soon as the results of the x-ray machine’s
implementation at Saxendrift are known.
