BM Diamondcorp completes Cempaka environmental impact assessment

Canadian diamond prospector BM Diamondcop Inc. announced on Monday that it had completed environmental impact assessment (AMDAL) on its Cempaka project in South Kalimantan based on the mine plan outlined in the feasibility study.

The company said the AMDAL, together with feasibility study had been lodged with local and regional government authorities and all final approvals for the commencement of mining are scheduled to be received by the end of 2002.

The company is also seeking to finalize the approximately US$2.3 million of debt and equity financing required for commencement of diamond mining at Cempaka in the first half of next year.

The company said feasibility study concluded that the Danau Seran and Cempaka deposits could be economically developed in two stages. Danau Seran would be mined over two years, starting with an initial six-month dry mining followed by 18 months of dredge mining for the total projected recovery of 82,051 carats. While mining of Danau Seran is completed, detailed in-fill drilling will be undertaken on the adjoining Cempaka deposit, where inferred resources delineated to date would be sufficient for a further 16 years of mining for the projected recovery of 633,450 carats.

The feasibility is based on mining the indicated highest grade zones of the Danau Seran and Cempaka deposits using the existing 2.5 million cubic metre per annum bucket line dredge and 180 tonne per hour dense media (DMS) diamond recovery plant acquired from Rio Tinto and MMC as part of the project purchase.

BM Diamondcorp has 80 percent stake in the project while state miner PT. Aneka Tambang holds the remaining 20 percent.Effective 1.6 percent gross product royalty will be paid to Tinto and Malaysia Mining Corporation(alex)