BM Diamondcorp to commence S. Kalimantan diamond production January
Wednesday, November 26 2003 - 10:54 AM WIB
BDI said it planned to commence production by January next year with a 14-foot rotary diamond pan plant capable of treating 700 bcm per day of diamondiferous gravels.
?At an initial anticipated feed grade of 0.2 carats per bcm, this plant is forecast to provide the company with initial production of approximately 4,000 carats of gem diamonds per month (48,000 carats per annum) once design capacity is achieved,? said BDI.
Based on the US$187/carat achieved from sales of diamonds recovered during trial mining of Cempaka, BDI forecast the pant to provide the company?s 80 percent-owned subsidiary PT Galuh Cempaka (PTGC) with monthly revenue of approximately US$750,000.
Additional revenue of approximately US$40,000 per month is anticipated from the recovery of gold and platinum credits from the gravels. Total operating costs are forecast to be approximately 50 percent of revenue.
This is forecast to generate cashflow to PTGC in excess of US$4.5 million during 2004.
?Once the initial production plant is successfully commissioned, the company will investigate adding a second plant to double the production rate from the previously reported Cempaka resource base of approximately 750,000 carats of gem diamonds, said the company.
Preparation of the initial mining pit is underway, and in-filling drilling ahead of the mining plan is continuing.
Meanwhile, the company also said it had received C$ 3million from third party which exercised warrants to purchase 15,000,000 shares of BDI at $0.20 per share. Parts of the fund will be used to finance the startup of diamond production from the Cempaka diamond project and undertake exploration programs to define drill targets on the Bobaris Block hardrock diamond project, which is located near Cempaka project. (alex)