[miningmx.com] –DIAMONDCORP, a southern Africa focussed diamond mine development and exploration company, on Wednesday reported the widening of its first half net loss to £1.6m from £974 476 previously.
The loss in the six months to end June 2010 was determined after charging administrative overhead costs of £653 983 and interest charges of £201 537.
Non-cash charges for the period included depreciation and amortisation and were
£611 461 and a foreign exchange loss on the long term loan of £168 960.
An operating loss of £1.3m was reported against the £1.2m posted for the first half of last year and headline earnings per share came in at £0.029 versus £0.024.
The consolidated cash balance was £4.1m.
DiamondCorp raised £7.1m of new equity capital during the period, allowing development at the Lace mine in South Africa and exploration in Botswana to resume.
“It was gratifying that after one of the toughest years on record experienced in the diamond industry, our shareholders, old and new, provided us with the development capital required to access the considerable diamond resource at Lace which exists below the -240m level,” said DiamondCorp CEO Paul Loudon.
The company said the 4.5mx4.5m decline was progressing within budget and was currently on schedule to access the -240m level by the end of 2010, slightly ahead of the original timetable.
The decline is budgeted to cost £4m.
Assuming a positive bulk testing grade and necessary development capital is raised, the 6mx2m vertical shaft is planned to be re-equipped during 2011 for primary ore hoisting which will provide capacity for production from Lace to increase to 1.2 million tonnes per annum. The decline will then be used for men, materials and ventilation for the remainder of the +25-year life of the mine.
“We have also commenced drilling on our exciting kimberlite prospects south of Debswana’s massive Jwaneng mine in Botswana,” said Loudon, adding that the company would report in detail the results of this exploration programme in the months ahead.
