Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
African diamond mining and exploration company DiamondCorp Plc., has received validation for its development plan at its Lace mine in South Africa, from SRK Consulting, an independent local consultant.
The engineering report for the 47 Level Block Cave scheme (470m depth), release today, found it was an “appropriate” method of mining for 1.2 million tonnes of kimberlite per year.
The document was required to progress negotiations with potential project financiers of the development, designed to produce up to 500,000 carats of diamonds a year.
“Our development plan has now been validated by SRK which paves the way for discussions with a range of potential project financiers to progress,” said CEO Paul Loudon.
“The key driver for management in these discussions will be to find the optimum financing method which is the least dilutive for existing shareholders.”
