Caussa, Mountain Lake combine at Ventersdorp

Two Canadian-based mining companies are consolidating their land holdings in the Ventersdorp alluvial diamond camp in South Africa. Caussa Capital (CAU-T) and Mountain Lake Resources (MOA-V) say the combination may help them achieve “significant economies of scale” at properties currently in production or development.

Mountain Lake is contributing seven properties where it holds rights to alluvial diamond extraction. Two of these properties, Hartebeeslaagte and Zwartrand, are currently in production, operated by South African companies that are paying gross sales royalties to Mountain Lake.

Hartebeeslaagte has been operated by Zoutpan Group since January. So far, it produced just under 500 carats of diamonds, generating about US$150,000 in sales, on which Mountain Lake has a 9% royalty. At Zwartrand, contracting group Maroun Civils is in the process of commissioning a 200-tonne-per-hour gravel processing plant, with minor diamond production. Mountain Lake holds a 10% royalty.

Hartebeeslaagte, Zwartrand, and a third property, Nooitgedacht, cover a 130-sq.-km area immediately east of Caussa’s Witkrans diamond property. Caussa has a bulk-sampling program under way at Witkrans that will ultimately process about 50,000 tonnes of alluvial material. Caussa plans to carry out trial mining at two alluvial gravel bodies on Nooitgedacht.

The two companies also intimated that a third company with diamond properties in the area has been in “preliminary discussions” with Caussa and Mountain Lake regarding more consolidation of properties, or possibly a corporate combination.