Bakerville Diamond Sale and Resource Update


 

TIDMPDF 
 
RNS Number : 0687Z 
Pangea DiamondFields PLC 
15 September 2009 
 

 
 
 
 
Pangea DiamondFields plc 
('Pangea' or the 'Company') 
 
 
Bakerville Diamond Sale and Resource Update 
 
 
Pangea DiamondFields plc (AIM: PDF), the diamond producer and exploration 
company, announces the third successful sale by tender of diamonds from its 
Bakerville Project ('Bakerville' or 'the Project'), which is situated within the 
Lichtenburg Diamond Fields approximately 250km west of Johannesburg, South 
Africa. 
 
 
The sale yielded an average price of US$238 per carat from a run of mine parcel 
of 796 carats. To date, over 2,000 carats in total have been sold by tender from 
Bakerville at a weighted average price of US$366 per carat. This sale is 
significant as the cumulative carats recovered and sold now exceed the minimum 
parcel size required in order to determine an average valuation for resource 
purposes in the Indicated category. 
 
 
In the Company's most recently published resource statement for Bakerville, 
dated 31 December 2008 and released to the market on 28 January 2009, an 
Inferred Resource of 3.59 million m3 and 122,500 carats was declared at an 
average recovered grade of 3.42 ct/100m3. As a result of additional sampling 
work since this resource estimate as well as the cumulative sale of the 
requisite parcel of diamonds for valuation purposes, the resource statement has 
now been updated and the results reflected in the table below. Project resource 
carats have increased dramatically by 370% to 455,000 carats at a similar 
recovered grade of 3.42 ct/100m3. Furthermore, following the most recent sale, 
confidence in the quality of the resource has increased with the inclusion of 
2.50 million m3 and 85,600 carats of Indicated resources in the overall 
resource. 
 
 
The new Bakerville resource estimated in compliance with the SAMREC Code, is as 
follows: 
 
 
+-----------+-----------------+------------+------------+---------+----------+--------+--------------+--------------+ 
|  Project  |    Resource     |  Gravel    |   Grade    | Carats  | Diamond  |Bottom  |    PDF's     |    PDF's     | 
|   Area    |Classi-fication  |  Volume    |(ct/100m3)  |         |  Value   |Screen  |Attributable  |Attributable  | 
|           |                 |            |            |         |          |  Size  |  Interest    |    Carats    | 
|           |                 |            |            |         |          |  (mm)  |              |              | 
+           +                 +------------+            +         +----------+        +              +              + 
|           |                 |    (m3)    |            |         |(US$/ct)  |        |              |              | 
+-----------+-----------------+------------+------------+---------+----------+--------+--------------+--------------+ 
|           |                 |            |            |         |          |        |              |              | 
+-----------+-----------------+------------+------------+---------+----------+--------+--------------+--------------+ 
|           | Indicated       |  2,502,400 |    3.42    |  85,582 |      366 |  1.6   |    74%1      |       63,331 | 
+-----------+-----------------+------------+------------+---------+----------+--------+--------------+--------------+ 
|  Patsema  |                 |            |            |         |          |        |              |              | 
+-----------+-----------------+------------+------------+---------+----------+--------+--------------+--------------+ 
|           | Inferred        | 10,795,000 |    3.42    | 369,189 |      366 |  1.6   |    74%1      |      273,200 | 
+-----------+-----------------+------------+------------+---------+----------+--------+--------------+--------------+ 
|           |                 |            |            |         |          |        |              |              | 
+-----------+-----------------+------------+------------+---------+----------+--------+--------------+--------------+ 
|           | Total           | 13,297,400 |    3.42    | 454,771 |      366 |  1.6   |    74%1      |      336,531 | 
+-----------+-----------------+------------+------------+---------+----------+--------+--------------+--------------+ 
|           |                 |            |            |         |          |        |              |              | 
+-----------+-----------------+------------+------------+---------+----------+--------+--------------+--------------+ 
| 1 Assumes the exercise of the PanEx option under which the Company is entitled to                                 | 
| acquire an additional 26% interest in all of PDF's South African projects, prior to 30                            | 
| June 2010 at a cost of US$2.5 million.                                                                            | 
|                                                                                                                   | 
+-----------+-----------------+------------+------------+---------+----------+--------+--------------+--------------+ 
 
 
Venmyn Rand (Pty) Ltd, the independent qualified person has reviewed and 
verified the resource estimate and a copy of their report is available on the 
PDF website; http://www.pangeadiamondfields.com/presentations.htm 
 
 
A feasibility study of the Project has now been successfully completed in-house 
with positive results. The Project scope at full production reflects a nominal 
capacity of 90,000 cubic metres of in situ gravel mined and processed per month, 
producing around 2,250 carats per month at a cost of approximately US$4.50 per 
cubic metre or approximately US$180 per carat at the envisaged nominal capacity. 
 
 
The Mining Right application to allow full scale exploitation of the deposit has 
been completed and submitted to the relevant governmental authority in South 
Africa. 
 
 
At this time, it is not possible to determine when the Mining Right will be 
approved and consequently, when commercial scale mining may commence, however 
PDF will undertake all preparatory work to ensure that upon approval, the 
transition to commercial scale operations is not unduly delayed. 
 
 
In keeping with the Company's strategy of reducing unnecessary expenditure, 
operations at Bakerville will be put on "care and maintenance" with immediate 
effect until such time as the Mining Right application has been approved and the 
Company is in a position to develop a commercial scale operation at Bakerville. 
Exploration will however continue, targeted to delineate additional resource 
potential outside the current resource area and all remaining carats will be 
sold in due course. Management is confident that the resource will continue to 
grow given that we have to date only explored approximately 25 - 30 % of the 
area within PDF's permit areas identified as being gravel bearing. 
 
 
Chief Executive Brett Thompson commented, "The results from the Bakerville 
project continue to encourage management and this latest update to the resource 
sees the economics of the Project improve further. Whilst we do not wish to slow 
the momentum at Bakerville, it is a statutory requirement that we await the 
relevant authorisation before scaling the project up to its full potential. We 
remain in a strong position with the Bakerville project ready for development, 
an improved resource and the relatively low inherent operating risk present in 
South Africa." 
 
 
Further information: 
 
 
+---------------------------+--------------------------+---------------------------+ 
| Pangea DiamondFields plc  | Ambrian Partners Limited | Walbrook PR Ltd           | 
|                           |                          |                           | 
+---------------------------+--------------------------+---------------------------+ 
| Brett Thompson            | Richard Brown            | Louise Goodeve / Leah     | 
|                           |                          | Kramer                    | 
+---------------------------+--------------------------+---------------------------+ 
| T: +27 11 438 4100        | T: +44 (0) 20 7634 4700  | T: +44 (0) 20 7933 8780   | 
|                           |                          |                           | 
+---------------------------+--------------------------+---------------------------+ 
 
 
Note: The information in this statement has been reviewed by Mr. Brett Thompson, 
B Eng (Mining), Grad Dip Applied Finance & Investment, FSAIMM, MAusIMM and Mr. 
Anton Esterhuizen B Sc (Geology), MSc (Mineral Exploration), FGSSA, MSME who are 
qualified persons for the purposes of the AIM Note for Mining, Oil and Gas 
Companies. Mr. Thompson is Chief Executive Officer of Pangea DiamondFields plc 
and has over 24 years experience in mining operations with some 12 years 
specifically in diamond mining and exploration. Mr. Anton Esterhuizen is Chief 
Exploration Officer of Pangea DiamondFields plc and has over 30 years experience 
in exploration activities throughout the world and has been the recipient of 
numerous awards for his exploration successes. 
 
 
Notes to Editors: 
 
 
About Pangea Diamondfields PLC 
 
 
Pangea DiamondFields plc (AIM: PDF) is an emerging diamond producer and 
exploration company with a portfolio of seven projects each with multiple 
resource targets, located in the Central African Republic, Democratic Republic 
of the Congo, South Africa and Angola. The Company aims to minimise risk by 
diversifying its projects geographically. 
 
 
PDF listed on AIM in October 2006 and is led by a strong management team, with a 
track record for creating shareholder value in mineral exploration. 
 
 For more information on PDF, please visit: 
http://www.pangeadiamondfields.com/ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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