BDI Mining reports increased diamond production at S. Kalimantan mine

London Stock Exchange-listed diamond miner BDI Mining Corp. reported on Wednesday second quarter production from Cempaka mine in South Kalimantan at 9,551 carats, 26 percent increase to previous quarter?s production of 7,552 carats.

The company also reported significantly higher gold and platinum by-product recoveries of 9,833 grams au and pt concentrates during the quarter, versus 5,709 grams in the previous quarter. Total diamond production from commencement of operations in 2004 now totaled 45,800 carats.

Increased diamond production in the quarter is attributed to the mining of higher grade blocks towards the western reaches of the Danau Seran channel, said the company.

Despite unusually high rainfall for this time of year, production continues at steady state, it said.

During the second quarter, a total of 13,436.35 carats of gem-quality diamonds were sold at Tender in Antwerp with total gross diamond sales for the period amounted to US$2.14 million, with by-product sales totaling US$375,829.

The company also reported it had commenced the initial stage of the Phase II expansion at Cempaka with the foundations for the additional two pans and larger scrubber now completed. The equipment is currently en route from South Africa and is expected to be installed and commissioned in September 2006. The main haul road into the first pit at Cempaka has been completed with initial dewatering activities now also commencing.

The company is targeting an eventual production rate of 100,000 carats per year from Phase II operations at Cempaka, and it is anticipated that first mining will take place in the 4th Quarter 2006. (alex)