BDI reports increased Q3 diamond production from S. Kalimantan mine

London-based diamond miner BDI Mining Corp. announced on Thursday that it had produced 14,59352 carats in third quarter of this year from its Cempaka alluvial gem diamond operation in SE Kalimantan, 52 percent higher compared with previous quarter?s production of 9,551 carats.

The company also significant reported increases in by-product gold and platinum recoveries, largely due to further improvements to the gold recovery circuit of the processing plant.

Also proving very encouraging, quarter on quarter per carat operating costs for Danau Seran in Q3 have decreased since Q2 2006 by 31% to a quarterly average of US$163 per Carat, said the company.

During the quarter, a total of 11,064.8 carats of gem-quality diamonds were sold generating total gross diamond revenues of US$2.45 million. This figure represents a 19% increase in sales over the last quarter.

The company also said that during the quarter, significant progress with the Phase II expansion to allow for an increase in processing plant throughput to 50,000 bcm ("bench cubic metres") of diamond bearing gravels per month have been completed and final stages of commissioning the expanded plant are near completion. Overburden stripping is proceeding on schedule and the Company anticipates first mining of diamond bearing gravels to take place by the end of October 2006.(alex)