DIAMOND PAGE — SouthernEra advances M1 to production

Partners SouthernEra Resources (SUF-T) and De Beers Consolidated Mines (DBRSY-Q) have started commercial production at their M1 kimberlite project in northern South Africa.

Processing of diamondiferous overburden began earlier this month, and contract miners are stripping waste overlying the primary kimberlite reserve. In total, 68,004 carats of diamonds were recovered from 7,928 tonnes treated to date, for an average recovered grade of 8.58 carats per tonne.

SouthernEra reports that several of the stones weighed greater than 10.8 carats (serie stones), with one weighing in at 99 carats. More than 21,000 carats of serie stones recovered from bulk samples of overburden processed last month were independently valued at US$204 per carat.

At last report, primary reserves were pegged at 512,400 tonnes averaging 3.08 carats per tonne. The reserves account for 15% dilution and are estimated to a depth of 100 metres.

Reserves are sufficient for two years of production, though additional tonnage is expected to be outlined at depth. Several nearby pipes and fissures remain underexplored.

SouthernEra owns a 40% interest in the farm containing the M1 kimberlite pipe, with De Beers holding the remainder. Mining is being carried out by contractors, which are transporting mined material to SouthernEra’s processing plant on the nearby Modderfontein farm (T.N.M., Aug. 17-23/98).