In the first quarter of 2005, Monroe Minerals (MMX-V) sold 2,412 carats of diamonds on a run-of-mine basis, reaping an average US$443 per carat, for total proceeds of US$1.07 million.
The diamonds were recovered from Monroe’s London property in the Northwest province of South Africa and were sold in three parcels.
The first parcel of 1,052 carats averaged US$453 per carat; the second parcel totaling 1,163 carats averaged US$418 per carat and the third parcel of 197 carats averaged US$530 per carat.
Half of the diamonds from these sales were produced in 2004, whereas the other half was produced this year.
Between August and October of last year, test mining processed an average of 24,000 tonnes of gravel per month, producing an average of one carat per hundred tonnes. The average stone size was 1.3 carats.
The 21-sq.-km property covers seven sq. km of a 5-10-metre wide tributary of the Vaal River. The tributary is often dry, but flows sporadically following rainfall.
During 1999-2000, Monroe took 18 bulk samples of gravel, totaling 113,280 tonnes, to test the diamond grade and quality. Most of the gravel had an average grade of 0.6 carat per hundred tonnes, although locally the grade averaged 1.6 carats per hundred tonnes. The average stone size was one carat.
Munroe Mining, a unit of Monroe, owns the right to prospect and mine diamonds for a 10-year period, ending Jan.21, 2009. The company can extend the period by an additional 10 years, subject to converting the area to a mineral lease. Diamond production is subject to a 14.5% royalty on gross revenue. In addition the company pays rent of 10,000 Rand monthly.
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