THE DIAMOND PAGE — Redaurum reports startup at Kelsey Lake mine

The Kelsey Lake diamond mine in Colorado is poised to become North America’s first commercial diamond producer, having recently entered production.

Mine owner Redaurum (TSE) expects Kelsey Lake to yield more than 25,000 carats this year and 100,000 carats in subsequent years. About 65% of the diamonds recovered are gem quality, while 25% are greater than 1 carat in size.

With an estimated resource of 16.9 million tonnes to a depth of 100 metres, Kelsey Lake is expected to have a mine life of at least 12 years. Redaurum is currently processing kimberlite from a 70,000-tonne stockpile excavated in 1995, and mining is expected to begin in May.

Redaurum says several parties are eager to market the diamonds exclusively in the U.S. The company has already recorded “Colorado Diamonds” and “Kelsey Lake Diamonds” as registered trademarks.

In the first quarter, Redaurum reaped $1.9 million from the sale of diamonds recovered primarily from its 50%-owned River Ranch mine in Zimbabwe, where quarterly production reached a record 118,074 carats. The company also sold a total of 580 carats at an average price of US$195 per carat from its two South African mines.