THE DIAMOND PAGE — Redaurum pulls the plug on River Ranch mine

Toronto-based Redaurum (RRK-T) will cease funding the unprofitable River Ranch diamond mine in Zimbabwe.

Redaurum subsidiary Cornerstone Investments owns half the project in a joint venture with Auridiam Consolidated NL of Australia, the operator.

Redaurum’s board of directors has decided not to heed Auridiam’s call for a further US$225,000 contribution to the project after Auridiam repeatedly refused to modify its plant and operating procedures.

Diamond output at River Ranch in 1995 was 225,516 carats, and 1996 production was projected to be more than twice that amount.

“We believe the interest of Redaurum’s shareholders are now best served by focusing resources on our American and South African mines, to ensure that they will be fully profitable in the first quarter of 1997,” says Redaurum President Anthony Hamilton.

Despite the funding decision, Redaurum reports that Cornerstone’s interest in the River Ranch joint venture could be diluted by no more than 3% by March 1997.