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Gothoma Diggings plant set up at Blue Gum
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Start of mining at Blue Gum |
Etruscan Diamonds holds one mining permit and three prospecting permits over three adjacent properties in the Ventersdorp alluvial diamond district (Nooitgedacht, Hartbeestlaagte and Zwartrand properties) known as the Blue Gum Project.
The Tirisano Diamond Mine, located on the Nooitgedacht property, represented the first phase of development for the Blue Gum Project. The Tirisano Diamond Mine was initially operated by Etruscan Diamonds. In May 2004, Etruscan Diamonds entered into an agreement with Mvelaphanda Exploration to facilitate the expansion of the Tirisano Diamond Mine and Mvelaphanda Exploration became the operator of the Mine. In June 2005, Mvelaphanda Exploration earned a 50% interest in the Tirisano Diamond Mine by commissioning a plant with a design capacity of 300 cubic metric tons per hour throughput and a 50/50 joint venture between Etruscan Diamonds and Mvelaphanda Exploration was formed with Mvelaphanda Exploration continuing as operator. Total diamond production from the Tirisano Diamond Mine up to the end of November 2005 when production ceased was in excess of 23,000 carats.
In October, 2007, Mvelaphanda Exploration transferred its 50% interest in the Tirisano Diamond Mine Joint Venture to Etruscan Diamonds. In 2007, Etruscan Diamonds also concluded an agreement with Mogopa Minerals (Pty) Ltd. ("Mogopa") transferring a 26% interest in the Tirisano Diamond Mine to Mogopa. Mogopa replaces Mvelaphanda Exploration as the entity providing the Black Economic Empowerment ("BEE") for the project as required by South African mineral legislation. Mogopa is also Etruscan Diamonds' BEE partner on the Hartbeestlaagte and Zwartrand properties.
Having control of the Tirisano Diamond Mine operation and surrounding Nooitgedacht property allows Etruscan Diamonds to consolidate the development of the diamond resources on the Nooitgedacht property with those on the adjacent Hartbeestlaagte and Zwartrand properties.
In July 2008, Etruscan Diamonds received a National Instrument 43-101 compliant independent resource update on the Blue Gum Project. The independent resource update prepared by Dr. Tania Marshall of Explorations Unlimited as of June 30, 2008 estimates that the Blue Gum Project contains 25.5 million cubic meters of indicated diamond resource and 15.3 million cubic meters of inferred diamond resources as follows:
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Indicated Resources
(Million m3) |
Inferred Resource
(Million m3) |
Grade
(ct/100m3) |
Value
(USD/ct) |
| Upper Gravel Package |
16.109 |
8.613 |
1.77 |
606 |
| Lower Gravel Package |
11.801 |
6.744 |
2.85 |
606 |
| Depleted by mining |
(2.365) |
(.023) |
|
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| TOTAL |
25.545 |
15.334 |
|
606 |
During the first quarter of 2008, Etruscan Diamonds recommenced mining and processing operations at the Tirisano Diamond Mine. The gravel from the mine is being processed at the pre-existing Tirisano DMS (dense media separation) plant, and through four 16 foot pan plants which have recently been installed near the DMS plant. The objective is to achieve a monthly throughput of 100,000 cubic meters of gravel per month from the two facilities with 40,000 cubic meters coming from the DMS plant and 60,000 cubic meters from the pan plant.
The ramp up at the Tirisano DMS plant and the new pan plants is continuing towards the forecast production rate of 100,000 cubic meters per month. To ensure uninterrupted power supply for operations, Etruscan Diamonds purchased a 2.2 megawatt generator to provide backup power availability for the entire mine site when grid power is unavailable. Installation of a commercial scale pre-screening unit has also been completed which increases the pre-screening capacity from 1,000 cubic meters per day to 10,000 cubic meters per day. This installation is critical to ensuring ramp up of the pan plants to the steady state production rate of 60,000 cubic meters per month. The forecast production rate of 100,000 cubic meters per month is anticipated to recover over 2,500 carats per month.
Etruscan Diamonds is presently completing a pre-feasibility study on the viability of expanding the operations on the Blue Gum Project from the forecast production rate of 100,000 cubic meters per month to a monthly rate of 260,000 cubic meters. The pre-feasibility study is being led by MDM Engineering of South Africa and is expected to be completed in the fourth quarter of 2008.
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