Koidu mine yields 47-carat stone for DiamondWorks

Vancouver – DiamondWorks (DMW-T), through 40%-owned Koidu Holdings, has commenced mining of a bulk sample from Koidu Diamond Mine Pipe No. 2 in eastern Sierra Leone.

Bulk sample mining at the Koidu No. 1 pipe has been successfully completed, showing positive results with respect to grade, quality and values; operations have now shifted towards Pipe 2.

The 50 tonne-per-hour processing plant has begun treatment of about 56,000 tonnes of kimberlite blasted from the pit. Initial indications exhibit good recovery of gem grade diamonds, including a good quality 47-carat stone.

Upon successful completion of this program, a mining plan will be implemented to optimize the exploitation of ore from the two pipes. The company anticipates both pipes will be mined simultaneously with the ore being blended.DiamondWorks’ operating company spent the first half of this year ironing the bugs out of the processing stream. Blast mechanics and rock characteristics in the first pipe led to coarser, more abrasive ore feed than anticipated, requiring the re-commissioning of an existing crusher, now underway. This impairment in operating capacity has set back the present program by about three months.

Despite the delay, diamond production to date has exceeded 30,000 carats. Of this amount, the company sold 18,162 carats, averaging US$224 per carat, for net proceeds of over US$4 million. The high carat value is characteristic of Sierra Leone diamonds. It is expected the remaining 12,000 carats will be sold in June.

A final mining plan for Koidu, including updated resource figures, is expected upon conclusion of the current program. Presently, the Koidu mine resource stands at 1.6 million tonnes grading 0.67 carats per tonne in pipe 1 and 3.1 million tonnes of 0.4 carats per tonne in pipe 2.

DiamondWorks (in the process of being renamed Energem Resources) is an African-focused energy and minerals company with active diamond operations in Sierra Leone and the Central African Republic. Diamond mining operations in Angola ceased in 2001 due to a force majeure, but negotiations are currently underway for a return to the country.

DiamondWorks (Energem) has 101 million shares outstanding as of the latest figures and has been recently trading in the $2.25-2.50 range.