Niocan

A strike at the Klipspringer diamond project in South Africa has forced SouthernEra Resources (SUF-T) to suspend underground development of the Leopard fissure.

According to SouthernEra, the union wants higher wages for the workers. However, management will consider such demands only if an in-house feasibility study proves positive. The study was was to have been completed by mid-year. In the meantime, mediation continues.

SouthernEra has been developing the Leopard fissure since 1997, mostly encountering low-grade material along the way. For instance, 9,137 carats were recovered from 28,090 tonnes in the first three months of this year — significantly less than the targeted 45-50 carats per 100 tonnes. Dilution has been the biggest problem.

At last report, the Leopard fissure held 4.3 million tonnes of kimberlite over a strike length of 3.4 km and down to a maximum depth of 630 metres.

SouthernEra notes that the strike does not affect the neighbouring Marsfontein operation, where primary kimberlite ore is scheduled to run out at month’s end. Thereafter, low-grade stockpiles will be treated as exploration continues.

SouthernEra owns a 40% interest in Marsfontein, with the remainder divided between De Beers Consolidated Mines (dbrsy-q) and a black empowerment group.