IGE Resources AB says first phase of Bakerville diamond mine commissioned
IGE Resources AB announced that the first phase of its Bakerville diamond mine in South Africa has been successfully commissioned.
December 28, 2011
IGE Resources AB announced that the first phase of its Bakerville diamond mine in South Africa has been successfully commissioned.
The diamond treatment plant has consistently achieved an average throughput of 120 tons per hour of run-of-mine material for the past two weeks on 24-hour per day operations.
Previous diamond recoveries from the mine suggest that Bakerville diamonds will have a current average market value of approximately $500 per carat. Mining costs for the potholes being explored are difficult to accurately estimate, mainly due to the diversity of the geological structures, necessitating flexible mining and processing methods.
Current operational cost estimations range between $220-$320 per carat in the initial phase, with a declining mining cost throughout the mine's life span which is generally in line with other costs of alluvial operations in South Africa.
IGE currently holds 55 percent of the Bakerville mining license with 26 percent being held by a Black Economic Empowerment company, as required by South African law. Local investors hold the remaining 19 percent. The ownership structure of the Harts River diamond project in South Africa is identical.
An option for IGE to purchase the 19-percent shareholdings in Bakerville and Harts River, bringing IGE's ownership in these two projects to 74 percent, has been extended until end of September 2012. The option enables IGE to buy the Bakerville and Harts Rivers shares for a total of $2.5 million.
The company said that IGE's cost-cutting programme continues to provide reductions in its operating costs. Most recently, IGE's office in Johannesburg was closed down. The remaining members of IGE's South African diamond team will work on a consultancy basis from January 2012.
