DIAMOND PAGE — Sonora Diamond sells Klipdam gems

In June and July, Toronto-based Sonora Diamond (SON-T) sold 1,575 carats of diamonds from its Klipdam mine near Kimberley, South Africa, at an average price of US$760 per carat.

The diamond sales enabled the company (previously known as Sonora Gold) to repay $2 million in long-term debt, and the company has entered into an agreement to settle a further $1.1 million by issuing shares during the third quarter.

Sonora reported a loss of $561,000 (under 1cents per share) for the six months ended June 30. The operating margin at Klipdam was $484,000, with diamond sales generating $2 million in revenue.

As of December 1996, the paleochannel resource at Klipdam was estimated at 10.9 million tons grading 1 carat per 100 tonnes — sufficient for a 9-year mine life. The plateau gravel deposits at Klipdam were estimated to hold 6 million tonnes averaging 0.5 to 1 carat per 100 tonnes.

In September 1996, the company acquired Bermuda-based Windsorton Mining, owner and operator of the Klipdam mine, where commercial production began last February.