Global Diamond recovers gemstones in South Africa

Trial mining by Global Diamond Resources (GDRS-O) has yielded gemstones that sold for an average price of US$1,443 per carat from the Grasdrif alluvial diamond property on the South African side of the Orange River.

In July of this year, the company recovered 43 diamonds weighing a total of 107.09 carats, which included a 25.5-carat stone valued at US$118,888.

The company began trial mining at the end of 1998 in order to get a better handle on the geological constraints governing the concentration of diamonds in the deposit. Since then it has recovered 517 carats with an average value of US$1,030 per carat. The trial-mining operation, which processes 500,000 tonnes per year, is expected to continue for another year.

Global Diamond believes Grasdrif contains 82 million tonnes of diamondiferous gravels, with the potential to yield more than 1 million carats.

Successful trial mining at Grasdrif and production at the Caerwinning alluvial operation, also in South Africa, increased the company’s second quarter revenues by 83%. Revenues reached US$932,829 for the quarter ended June 30, compared with revenue of US$509,094 in the first quarter of 2000, and with no revenue in the last quarter of 1999.

Most of the revenue came from Caerwinning, where the company is processing 1 million tonnes per year since commissioning the plant in September 1998. To date, the operation has recovered 2,778 carats in 2000.

Total net income from mining for the June quarter was US$230,682, up from a loss of US$144,872 in the first quarter of 2000.

Including all overhead costs, the company posted a net loss of US$252,307 (or 1 per share) in the second quarter, compared with a net loss of US$537,391 (1 per share) for the previous quarter.