High-value diamonds are flowing from the Luo fluvial diamond operation, reports SouthernEra Resources (SUF-T).
SouthernEra receives 10% of the net profit from the Angolan operation, and 35% of the profit from diamond production on the adjacent floodplain.
A total of 2,967 carats of diamonds from the fluvial operation at Luo was sold for US$2 million, for an average of US$669 per carat. Within this parcel, 1,255 carats (largely those recovered over two days from a single trap structure) were sold for an average of US$1,394 per carat.
Year-to-date production from the fluvial operation is 17,967 carats, of which 16,120 have been sold for an average price of US$386 per carat. Recently mined (and thus unsold) production includes 52 stones between 2 and 5 carats in size, 10 stones between 5 and 10 carats, three stones between 10 and 15 carats, and a single stone weighing 16.05 carats.
Mining and treatment of floodplain gravels by SouthernEra are under way. A total of 347 carats has been mined to date.
A paleochannel has been identified on the floodplain, and testing indicates that it contains higher grades and larger, higher-quality diamonds than does surrounding material.
Additional treatment capacity is being added to the Luo operation. Plans are afoot to mechanize fluvial mining in the newly diverted river bed area, replacing less efficient pumping of gravels using divers. Diversion of the river has exposed 1.6 km of potentially diamond-bearing river bed gravels and sands.
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