The revision calls for De Beers and Steppon Investments to cover the US$6.5 million needed to complete mine development. The companies will also contribute properties, consequently extending the strike length of the favourable Klipspringer fissure system to 7.5 from 3.5 km.
SouthernEra will operate and own half of the resulting project, with the remainder to be split between De Beers and Steppon. This effectively increases, by 10%, SouthernEra’s stake in the previously separate Marsfontein joint venture, while reducing, by half, its interest in Klipspringer.
In August 2000, an independent feasibility study pegged Klipspringer’s reserves at 3.6 million tonnes averaging 50 carats per 100 tonnes. The calculation includes results from development stopes.
Revenue over the 13 years of expected production is projected to be US$166 million; the internal rate of return, 42.9%; and the payback period, 1.5 years after full production begins. Mined diamonds are expected to fetch US$100 per carat on the market.
The deal is subject to the approval of the South African Competition Commission.
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