2013 Revised Resource and Reserve StatementBack
31 Jul 2013
Gem Diamonds Limited (LSE: GEMD) has released a revised Resource and Reserve statement, which is available on the Companyâ€™s website www.gemdiamonds.com.
Gem Diamonds has two resource bases â€“ the LetÅ¡eng diamond mine in Lesotho (ownership 70%) and the Ghaghoo development project in Botswana (ownership 100%).
Key Comments on the 2013 Resource and Reserve Statement, which is effective 1st January 2013:
- SAMREC Compliant Resources and Reserves, independently verified by Venmyn Deloitte.
- Gross resources (inclusive of reserves) totalling 25.8 million carats with an average grade of 6.30 carats per hundred tonnes at an average diamond price of US$625/carat.
- LetÅ¡eng total resource base has increased in carat terms by 32%, from the 2012 statement, to a total of 5.3 million carats, with an average grade of 1.75 carats per hundred tonnes at an average diamond price of US$2191/carat. The increase in the resource base is a result of the successful extension of the orebody at depth from recent drilling programmes.
- The Ghaghoo project has declared a mineable reserve, ahead of the 2014 planned production start, of 2.1 million carats, with an average grade of 27.81 carats per hundred tonnes at an average diamond price of US$246/carat.
For further information:
Gem Diamonds Limited
Sherryn Tedder, Investor Relations
Tel: +27 (0) 11 560 9600
Mob: +27 (0) 83 943 4505
Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 207 861 3232
About Gem Diamonds:
Gem Diamonds is a leading global diamond producer of high value diamonds. The company owns the LetÅ¡eng mine in Lesotho as well as the Ghaghoo mine, currently in development in Botswana. The LetÅ¡eng mine is famous for the production of large, top colour, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world. Since Gem Diamondsâ€™ acquisition of LetÅ¡eng in 2006, the mine has produced four of the twenty largest white gem quality diamonds ever recorded.
Gem Diamonds has a growth strategy based on the expansion of the LetÅ¡eng mine and the development of the Ghaghoo mine, while maintaining its strong balance sheet. The Company seeks to maximise revenue and margin from its rough diamond production by pursuing cutting, polishing and sales and marketing initiatives further along the diamond value chain. With favourable supply/demand dynamics expected to benefit the industry over the medium to long term, particularly at the high end of the market supplied by Gem Diamonds, this strategy positions the Company well to generate attractive returns for shareholders in the coming years.