BM Diamondcorp says stripping ratio improving

Canadian diamond miner BM Diamondcorp Inc announced Tuesday that detailed in-fill Bangka drilling at 25m hole spacing and 50m line spacing at the Cempaka diamond project in SE Kalimantan, has delineated zones of diamondiferous gravels at significantly lower stripping ratio than the project average.

?As a result, the company is redesigning its mine plan to commence operations in this area. Overburden stripping for the commencement of commercial diamond production previously scheduled for the first quarter will now start in the second quarter, following the new pit plan based on the detailed in-fill drill data and cessation of the wet season. The in-fill drill data indicates that mining for the first year may now achieve an overburden to diamondiferous gravels strip ratio of 4.5:1 compared with the previously estimated 7:1, resulting in significantly improved project economics for the first year's mining,? BM Diamondcorp said in a report.

The drilling is recovering coarse indicator minerals in the thicker gravel sequence, and several gem quality macro diamonds of up to 0.15 carats have been recovered in approximately 18kg drill samples from 0.5m intervals, said the company.

Diamond production is planned at a production rate of 4,000 carats of gem diamonds per month, representing annualized sales revenue in excess of US$8.4 million at a diamond price of US$175 per carat. Construction of the company's production pan plant has been completed and is ready for shipment to the mine site.

BM Diamondcorp has 80 percent stake at Cempaka diamond project with state miner PT. Aneka Tambang holds the remaining balance. (alex)