Diamondcorp provides trading statement

Diamondcorp Plc provides trading update for the six months ending 31 December 2007.

Lace Mine

In the last week of September, commissioning of a 1.6 million tonne per annum dense media separation plant was completed at the Company’s 74% owned Lace diamond mine near Kroonstad, 200km southwest of Johannesburg.

During the period, 320,045 tonnes of tailings were treated for the recovery of 25,266 carats of diamonds, representing a recovered grade of 7.8 carats per hundred tonnes (cpht). Approximately one third of this tonnage remains stockpiled for recrush to liberate additional diamonds (estimated to be up to 3 cpht) locked up in +6mm to 28mm kimberlite particles.

The plant recovered 25,266 carats of diamonds during the period, including a 17.72 carat stone and a 13.81 carat stone. Approximately two thirds of all diamonds produced were of gem quality, including a high proportion of clear white stones, a significant proportion of fancy yellow stones, numerous small pink and vivid purple diamonds and one small intense blue diamond.

During the period, 8,574 carats of gem diamonds were sold at tender for proceeds of US$548,291 ($64/carat). Also, 5,170 carats of industrial grade diamonds were sold at tender for US$21,633 ($4/carat). Of the 13,744 carats sold, 9,290 carats were diamonds recovered during the commissioning process. The balance of carats produced during the period will be sold at future tenders.

Commenting on the production, DiamondCorp’s Managing Director Paul Loudon said that the diamonds recovered from the tailings provide us with a window into the main pipe. The quality of the stones continues to exceed our expectations and the significant proportion of fancy coloured stones augurs well for high quality production from underground at Lace.’

Management has formulated an accelerated development plan which aims to introduce pipe material into the mine plan by the third quarter of this year.

The accelerated plan involves sinking a decline shaft into the unmined portion of the Lace satellite pipe which historically was only mined to a depth of 50m. Bulk testing followed by trial underground mining of the satellite pipe kimberlite via the decline shaft will be undertaken simultaneously with the refurbishment of the existing 360m deep, 6m x 2.7m, vertical shaft which accesses the main Lace pipe.

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