Redaurum recovers more diamonds

Since the start of the year, Redaurum (TSE) has sold diamonds from all four of its operating properties, resulting in an average price per carat of US$141.

That figure, however, excludes the sale of an 11.2-carat stone from Quaggas Kop, in South Africa, for US$1,850 per carat. Average prices from Quaggas Kop and Avontuur, also in South Africa, topped US$165 per carat, exceeding Redaurum’s expectations.

At the Kelsey Lake property in Colorado, a new diamond recovery plant with a capacity of 200 tonnes per hour is expected to be fully operational by the end of May.

A parcel of Kelsey Lake diamonds was recently sold for an average of US$206 per carat, and Redaurum expects increased diamond sales from Kelsey Lake to be reflected in the second and third quarters of this year.

More than 90,000 carats from the company’s 50%-owned River Ranch mine in Zimbabwe have been sold since the first quarter of the year, though prices for these stones have been low.

Redaurum expects diamond recovery to increase as expansion plans are implemented at its Avontuur, Quaggas Kop and Kelsey Lake operations. Including output from River Ranch, diamond production in 1997 is expected to exceed 750,000 carats.

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