DIAMOND PAGE — Global sells first parcel

Global Diamond Resources (GDRS-O) has sold its first parcel of diamonds from test mining at the Grasdrif alluvial operation in South Africa.

The California-based company received US$727 per carat for the 142.5-carat parcel, which included two stones measuring 17.5 and 21.4 carats.

The 57 stones in the parcel fetched US$103,600, or 16% more than expected.

Global Diamond has been conducting trial mining at Grasdrif to determine the geometry of the bedrock contact. The company dug trenches to the bedrock surface, looking for potholes, which are prospective sites for diamond deposition. All the gravel, including finer sands, was run through the rotating pans and the dense media separator.

The company expects to begin full-scale operations in October when it moves the dense media separator to the upper terraces of the Grasdrif deposit. Trial mining will continue on the lower terraces, using the rotating pans. At that point, Global will be processing 40,000 tonnes per month.

The company believes Grasdrif contains 82 million tonnes of diamondiferous gravel with the potential to yield more than 1 million carats of high-quality stones. The property sits on the southern bank of the Orange River, which forms the boundary between South Africa and Namibia.

Meanwhile, the company plans to increase monthly capacity at the Caerwinning alluvial mine, also in South Africa, to 40,000 tonnes. Funds for the expansion will be derived from a US$6-million financing arranged late last year.