Partners Etruscan Resources (EET-T) and Mountain Lake Resources (MOA-V) have inked a $1 million loan agreement with South Africa’s Industrial Development Corp. The funds will go toward the development and expansion of the Ventersdorp diamond project, 150 km west of Johannesburg.
The partners recently added to their South African holdings picking up 12 properties in the Ventersdorp and Lichtenburg alluvial diamond districts. The latest acquisitions include extensions of gravel runs from the partners’ Ventersdorp and Mooi River groups, plus other gravel runs in the districts. Several are home to historic small-scale diamond production.
Since teaming up earlier this year, the two have put together a property portfolio totalling 600 sq. km. The goal is to accumulate an inventory of 1 billion tonnes of diamondiferous gravels.
With a 10-year mining license in hand, the companies also report that phase 1 production mining is underway at Ventersdorp. Production at full steam is slated to begin in mid-September.
The operation’s processing facility is 80% complete, and the commissioning of the dense media separation circuit is ongoing.
During phase 1, processing will target a 100,000-tonne ore stockpile, currently being amassed, at a rate of 4,000 tonnes per day for an expected annual output of 19,200 carats of gem quality diamonds. The processing plant’s capacity can be easily doubled to 8,000 tonnes per day; Johannesburg-based Manhattan Mining Equipment has been commissioned to source equipment for the expansion.
The 1.2-million-tonne-per-year processing plant is designed to screen and scrub 200 tonnes of alluvium per hour, then separate 50 tonnes of the densest material, including diamonds, for final passage through an X-ray sorter.
Known gravel resources are pegged at more than 12 million tonnes, which have historically averaged 1.6 carats per 100 tonnes. This is sufficient for 10 years of production at the projected rate, during which time 19,200 carats should be yielded annually.
The operation is expected to generate roughly US$28.5 million in cash flow, after taxes.
Etruscan holds a 75% interest in the joint venture; Mountain Lake, the remainder.
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