Klipgat yields 1,368 carats

Up and running again for just more than a month, Etruscan Diamonds has already produce 1,386 carats from its Klipgat alluvial diamond project in the Mooi River valley, about 40 km east of the Tirisano diamond mine in Ventersdorp, South Africa.

Between June 23 and July 25, contract miner Gothoma Diggings recovered some 1,188 diamonds from 58,145 cubic metres of gravel. More than 9% of the stones exceed 5 carats, with the largest stone weighing in at 20.54 carats; the average stone size rings in at 1.15 carats.

The project is equipped with an expanded, 40,000-tonne-per-month diamond recovery plant.

At the end of June, Etruscan Diamonds sold a 203-carat parcel from Klipgat and received an average price of US$530 per carat; the package did not include the 20.54-carat stone.

The latest haul was derived from the same area Gothoma mined for 16,500 carats between February 2002 and April 2004. Those stones sold for more than US$6.4 million, or an average of US$392 per carat.

"We are very encouraged by these production figures from Klipgat. Throughput has exceeded plant capacity and the diamond value is up 35%," said Etruscan Resources CEO Gerald McConnell.

"This operation will assist in our understanding of the potential of the Mooi River gravels. Based on historical diamond production records from the Mooi River gravels, we anticipate continued positive results," he added.

Etruscan was recently granted a prospecting permit for the Mooi River concessions, immediately to the south. Ground-based gravity surveying there will follow up on three sinkhole targets identified during previous airborne gravity surveying. Drilling is also planned.

Klipgat is being developed in partnership with the local black economic empowerment (BEE) community, known as Bakwena Ba Mare A Phogole. Etruscan Diamonds is owned 51% by Etruscan Resources (EET-T) and 25% by Mountain Lake Resources (MOA-V), with the remainder held by several private investors, including officers and directors of Etruscan.

The Mooi River concessions are being developed in partnership with the WakeMin Consortium BEE group; the local community and women’s groups, including the Ngakane community, will hold at least 40% of WakeMin.