2012 REVISED RESOURCE AND RESERVE STATEMENT
25 Jul 2012
Gem Diamonds Limited (LSE: GEMD) has released a revised Resource and Reserve statement, which is available on the Company's websiteÂ www.gemdiamonds.com
Key Comments on the 2012 Summary Resource Statement:
- The total resource base in carats has been maintained at circa 29 million carats
- The Indicated portion of the total carat resource has been maintained at 62%
- The LetÅ¡eng resource base (carats) has increased by 10% due to higher resource grade estimates
- The LetÅ¡eng revenue (US$ per carat) estimate has increased by 5% to an overall value of US$2839 per carat
- The Ellendale resource base in carats has reduced by 15% to 3.98 million carats
- The overall (including E4) Ellendale revenue (US$ per carat) estimate has increased by 16%. The Indicated resource (predominantly the E9 orebody) revenue estimate has increased by 54%
- The Ghaghoo resource base (carats) remains unchanged at 20.53 million carats
- The Ghaghoo revenue estimate has increased by 16% to an overall value of US$259 per carat
- Improved performance in terms of reduced diamond damage for LetÅ¡eng's plant 3 has been revised up to a 9% increase in LetÅ¡eng's revenue compared to 5% in the 2011 reserve statement.
- An increase in diamond liberation for LetÅ¡eng's plant 3 is expected to add a further 4% increase in LetÅ¡eng's revenue which had not been included in the 2011 reserve statement.
For further information:
Gem Diamonds Limited
Sherryn Tedder, Investor Relations
Tel: +27 (0) 11 560 9600
Mob: +27 (0) 83 943 4505
Kim O'Farrell, Public and Media Relations
Tel: +44 (0) 203 043 2080
Mob: +44 (0) 776 506 1316
Pelham Bell Pottinger
Tel: +44 (0) 20 7861 3232
About Gem Diamonds:
Gem Diamonds is a leading global diamond producer with a focus on high value diamonds. Its production portfolio comprises kimberlite and lamproite mines in Lesotho and Australia, and a mine development project in Botswana. Both production mines are world-leaders in production of the highest quality, highest value gems: remarkable whites from the LetÅ¡eng mine in Lesotho; fancy yellow diamonds from Ellendale in Australia. This production positions the Company strongly in a segment of the market expected to generate attractive returns over the long term.
Gem Diamonds has a clear and consistent growth strategy, based on development of its existing assets and carefully targeted acquisition. The strategy has been implemented with a view to capitalising on the steady improvement in the diamond market seen during 2010-11 and the supply demand dynamics which are expected to continue for the foreseeable future.