De Beers confirms sale of Jagersfontein

[] — De Beers Consolidated Mines on Thursday confirmed that the closing date for expressions of interest in the Jagersfontein Diamond Property in the Free State is on Friday this week.

The company invite expressions of interest from mining companies regarding the
acquisition of the mine last month, indicating that it was looking to sell to dispose of the assets to consortia with empowerment credentials.

Jagersfontein operated from 1870 to 1971 producing a Tailing Mineral Resource of just over 13 million tons at an average grade of 12.8 carats per hundred tonnes (cpht).

However the recovery rate of diamonds per hundred tons of ore treated can be
termed ‘low yield’, said De Beers.

“The tailings might be attractive to a mining company, or mining consortium, with empowerment credentials and a sound track record in respect of tailings processing operations or comparable operations,” De Beers said.

De Beers said it has engaged with the appropriate government authorities at
national, provincial and local government level and has the cooperation of the
government in expediting the process of the sale of the Jagersfontein Property.

“The company expects the diamond asset will attract interest as there are nowadays a number of competent mining companies experienced in processing such resources,” De Beers said.

It said it had noted the improvement in the junior diamond mining sector and in the outlook for rough diamonds, which “is beginning to show some signs of recovery”.