| Redaurum Limited-American Diamond Mine Commences Production
TORONTO, ONTARIO--Redaurum Limited (RRK-TSE) said today that diamonds
are being recovered from its newly commissioned treatment plant at the
Kelsey Lake diamond mine in Colorado. The diamonds are being
recovered from kimberlite taken from a 70,000 tonne stockpile
excavated late in 1995.
The plant has a design capacity of up to 200 tonnes per hour and is
forecast to produce more than 25,000 carats of diamonds in 1996 and
100,000 carats in following years. The two Kelsey Lake kimberlite
pipes are estimated to contain US$153,000,000 of diamonds, excluding
stones larger than 10 carats. Diamonds recovered to date were 65
percent gem quality and 25 percent by weight greater than one carat in
size. The project is expected to have a minimum life of 12 years when
the plant is developed to its maximum capacity.
The newly commissioned recovery plant uses four 4.27 metre (14 ft)
rotary pans fed via a scrubber, and incorpora. |
| 3) All companies currently in the N.W.T. are looking for diamond
bearing kimberlite and a select few are doing bulk samples (MPV-V)
and the leader Dia Met is going to start a diamond mine in 1997.
UDM-V has a good sized bulk sample done (3000 ton) with an incredible
89,000 macro diamonds found. They didnt even count the micros.
Mountain Province - Hit $9+ and they are waiting for bulk
sample results.
Gerle Gold - Hits $3+ with no concrete results...
Tradewinds - Hit $1.85 last year with a few macros...
Cypango - Hit $3.79 recently on kimberlite discoveries... |
| kimberlite resource of 16.9 million tonnes to a depth of 100 metres
(328 ft) with the two largest pipes KL1 and KL2 having a combined
surface area of nine hectares (22 acres). Drilling indicates
kimberlite weathered to a depth of at least 100 metres.
A number of parties have approached the Company to market the Kelsey
Lake diamonds exclusively in the USA. An announcement is expected
shortly. The Company has also recorded Colorado Diamonds and
Kelsey Lake Diamonds as Registered Trademarks.
Revenues from the Kelsey Lake diamond mine are expected to impact
Redaurums results in the third quarter of 1996 when the first
marketable parcel of diamond production is to be sold. The Company
believes the third quarter results will show effects of the combined
diamond sales from all four of its operations: Kelsey Lake, Quaggas
Kop, Avontuur and River Ranch. |
| 5) All production will be sold in U.S. market. The stones are expected
to sell for US$175 carat. I have been told the Kelsey Lake Mine
diamond sales will be bypassing the DeBeers diamond cartel. UDMs
property is 15 miles from the first producing diamond mine in North
America. |
| 1) In June 94, a private company, Colorado Diamonds NL, discovered a
14.2 carat stone from Kelsey Lake, 8th largest diamond found in North
America. 14.2 carat stone valued at $250,000 |
