Sonora shifts focus to diamonds

In a name change that reflects the company’s new focus, Sonora Gold is now known as Sonora Diamond (SON-T).

Although shareholders approved the new name at Sonora’s annual meeting, about half of them stopped a motion to undertake a 5-for-1 share consolidation. Shareholders voted 52% in favor of the consolidation, but a vote of two-Thirds is necessary.

Commercial production at the company’s Klipdam mine in South Africa began in late February, but, owing to unusually wet weather, production in March totalled only 259 carats.

Production for the first nine days of April totalled 207 carats — a rate that is more representative of the mine’s projected monthly production of 1,000 carats. Since March, production has included an 18-carat rape yellow diamond and a 12-carat white stone. The sale price of the company’s diamonds averages about US$600 per carat.

Also, the company has acquired an option on a producing property adjoining the Klipdam mine.