KimCor on South Africa operations

KimCor Diamonds plc, an integrated diamond mining and exploration company focused on diamond production in Africa with complementary cutting and polishing operations, provides an update and progress report on the expansion programmes in South Africa.

The company said that during May SMI4 diamond recovery averaged 12.23cpht against a budget of 6cpht. The new equipment required to take SMI4 processing rates up to 150,000 tonnes per month (’tpm’) will be installed and commissioned by the end of July 2008.

Newlands mine achieved the budgeted recoverable grades for both kimberlite and tailings during the month. A new crusher circuit was installed during late May and the operation is expected to process 7,000tpm of kimberlite and 23,000tpm of tailings during June 2008.

The hoisting from underground and processing of kimberlite at Blaauwbosch mine is expected to increase from 100 to 400 tonnes per shift in June following the completion of a new ore pass that has been a bottleneck to production. This new ore pass is scheduled for completion by 16 June.

Martyn Churchouse, CEO of KimCor said that the impact of the capital expansion programmes on the mines is now starting to be reflected in Group diamond production. The Company remains on schedule to complete further expansions at SMI4, Newlands and Blaauwbosch resulting in the production and recovery of 15,000 carats per month. At this level, we will exceed our target of an annualised 150,000 carats during the current year.

He further said that during May we have also seen a further reduction in operating costs on every mine and the projected further increases in production and processing rates should see costs continue to fall.

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