DIAMOND PAGE — Diamond output adds to Trivalence bottom line

Diamond production from the Aredor concession in Guinea provided Vancouver-based Trivalence Mining (TMI-V) with a healthy profit in the fourth quarter of 1997.

Revenue from Aredor totalled $7.5 million in the three months ended Dec.

31, compared with expenses of $4.8 million. Trivalence holds an 85% interest in the operation, and the government of Guinea holds the other 15%.

Trivalence’s share of the net income was $2.3 million.

Commercial production at Aredor began in late October 1997.

The alluvial deposits of Aredor yielded 4,218 carats of diamonds during the quarter, including a 70-carat gem-quality stone that sold for US$2.7 million.

Excluding the proceeds from the 70-carat diamond, the average selling price for Aredor production during the second half of 1997 was US$572 per carat.

During the pre-commercial phase at Aredor, a dual 8-ft. pilot plant was employed to process diamonds. In August, Trivalence installed a 14-ft.

commercial pan plant to process 10 million tonnes of tailings left by the previous operator. However, procurement problems and related infrastructure issues delayed the initial commissioning of the plant until January 1998.

March is expected to be the first month in which the plant functions at its rated monthly capacity of 60,000 tonnes — triple that of the dual 8-ft.

pan plant, which is slated for a complete rebuild.

Trivalence recently reached an out-of-court settlement with its former Aredor partners: Consolidated African Mining (CAM), Consolidated African Diamonds (CAD) and Barker’s Metal & Mining. Trivalence paid CAM, CAD and Barker’s a total of US$1.2 million to terminate the partnership and go it alone at Aredor. As a result, its interest in the concession jumped to 85% from 59.5%

Trivalence now has full operating control of the mining operations and the current kimberlite exploration program, as well as the marketing of all diamonds produced at the Aredor mine.