RNS Number:5791N
Cape Diamonds PLC
11 December 2006
Date: 11 December 2006
On behalf of: Cape Diamonds Plc ('Cape Diamonds' or the 'Company')
Embargoed until: 0700hrs
Cape Diamonds Plc
28 Carat Diamond Sold for $6,100 per carat
Cape Diamonds Plc (AIM: CAPE), the diamond producing company with diamond assets
in the Republic of South Africa, has sold its first diamond since the phased
commissioning of an eight pan plant and crushing and screening system began
earlier this year.
A 28 carat gem quality diamond was recovered from the Elandslaagte property in
early November, which has now been sold for $6,100 per carat, a total
consideration of $170,800. The 28 carat diamond was recovered from the Balmoral
pipe, where the company has only recently started a drilling and bulk sampling
programme. The Company currently has a total inventory of 2,100 carats,
recovered mainly from the Leicester pipe, which it anticipates selling by way of
a tender in early 2007.
Cape Diamonds' Elandslaagte mine is based on a diamondiferous kimberlite pipe
system and consists of three pits - Leicester, Russel and Balmoral. Mining
activity is currently concentrated on the Leicester pit, however, exploration
programmes are ongoing at all three pits and geological data from the Balmoral
pipe is currently being evaluated.
Masoud Alikhani, Executive Chairman of Cape Diamonds, commented:
"We are delighted to have sold our first diamond to an international buyer since
listing on AIM earlier this year. Our current inventory also includes further
gem quality diamonds which we will be selling by way of tender in the New Year.
This sale underlines our confidence in the ability of Elandslaagte to produce
high quality diamonds. Geological delineation and evaluation continues on
Balmoral, which has an estimated potential resource of 6.6 million tonnes at a
diamond grade of 7.2 carats per hundred tonnes."
- Ends -
Enquiries to:
Cape Diamonds Plc
Masoud Alikhani - Executive Chairman 020 7408 1181
WH Ireland
Tim Cofman-Nicoresti 0121 616 2101
Redleaf Communications
Emma Kane / Samantha Robbins / Duncan McCormick 020 7822 0200
Notes to Editors:
* Cape Diamonds was established in March 2004 to capitalise upon the
opportunity to acquire diamond assets in the RSA
* The Company began trading on AIM in May 2006
* In 2004 the company acquired a 74.4pc stake in the Elandslaagte
mine, RSA, an existing mining operation on a diamondiferous
kimberlite pipe system
* Since 1896 approximately 30,000 carats of diamonds have been
extracted from the Elandslaagte mine
* The Project currently has indicated and inferred diamond resources
of 1.25 million carats with considerable upside potential from
established kimberlite deposits
This information is provided by RNS
The company news service from the London Stock Exchange
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