Between Sept. 28 and Nov. 26, 360 stones were picked, bringing to 503 the total number recovered since test-mining began earlier this year. The average stone size for the entire amount is 1.26 carats, including two diamonds weighing 16 and 19 carats, and all were sold for an average of US$390 per carat.
Soon, a scrubber will be added to the plant to wash away clay and thus improve recovery rates.
Meanwhile, bulk sampling is set to resume at a second alluvial diamond concession, Nooitgedacht 131, also in South Africa. Such activities were suspended in mid-September, owing to a lack of funding, but not before 25 diamonds weighing a total of 40.5 carats were found.
Based on its agreements with the owners, Mountain Lake receives 15% of the gross royalties generated from both properties. At Klipgat, 5% of the royalty reverts back to those owners. Diamonds recovered during prospecting at Nooitgedact are subject to a 10% gross royalty.
Mountain Lake must pay $470,700 to the owners within three years.
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