Trivalence continues streak

Contributions from the recently opened Palmietgat mine in South Africa have enabled Trivalence Mining (TMI-V) to chalk up its sixth straight increase in quarterly diamond production.

Trivalence owns a half-interest in Palmietgat and an 85% stake in the Aredor mine in Guinea. De Beers Consolidated Mines (DBRSY-Q) holds the remaining interest in the former, which began commercial production in September.

Combined contributable production topped 17,209 carats in the three months ended Dec. 31, 2000, up 87% from the comparable period a year earlier. Both contributed roughly the same amount to Trivalance’s account.

Trivalence sold two parcels during the quarter: 5,086.06 carats from Aredor grossed US$1.9 million for an average price of US$380.25 per carat, and 575.82 carats from Palmietgat fetched an average of US$200.88 per carat, for a total of US$115,671.

In 2000, Aredor cranked out 40,803 carats, or 63% more than it did in 1999. The mine exploits alluvial sources, whereas Palmietgat taps primary kimberlite bodies.

Meanwhile, Trivalence is continuing exploration efforts at Aredor and at its wholly owned Kokong property in Botswana. Together, the two comprise nearly 4,000 sq. km.

London-based Rio Tinto (RTP-N) recently signed a letter-of-intent with Trivalence to acquire a 58% stake in the kimberlitic potential of Aredor. The major can initially earn a 40% interest by spending US$6 million on exploration (including the cost of a recently completed 3,200-metre drill program) and paying US$2 million in cash over three years. This can be boosted to 58% in exchange for advancing any primary deposit discovered to production and paying another US$6.5 million (T.N.M., Dec. 25-31/00).