In the first of two rough diamond tenders planned for the third fiscal quarter ending December 31, 2015, the Company sold 6,859.31 carats for gross proceeds of $813,440.67, with an average price of $118.59 per carat. As of November 16, 2015, approximately 2,625 carats of additional rough diamonds have been delivered and prepared for a second tender scheduled to be completed in December 2015.
Collectively, the Company plans to tender approximately 9,480 carats in its current third fiscal quarter ending December 31, 2015, a ~95% increase when compared to the 4,845.93 carats tendered and sold in its second fiscal quarter.
Rough diamonds recovered between the previously noted November 16, 2015 second tender cut-off date to the end of the fiscal quarter ending December 31, 2015 will be recorded at the end of the period as rough diamond inventory on-hand. This inventory will be prepared for upcoming tenders expected to take place early in the Company’s fourth fiscal quarter ending March 31, 2016.
The price per carat realized during the first tender completed were in line with Company expectations given current market conditions.
The Company continues to advance its efforts with respect to the pending confirmation and receipt of final approvals from the South African Department of Water Affairs to allow for the integration of additional water boreholes aimed at supporting further increases in the processing volumes and the optimization of the Project’s dry screening plant and main treatment plants.
In addition to the ongoing processing of materials in the +1.0mm to -26mm size fractions completed to date, the Company also anticipates that the processing of the previously stockpiled materials in the +26.0mm will commence in the coming weeks.
The rough diamonds which have been tendered are the result of the continued processing of material in the +1.0mm to -26mm size fractions, along with limited processing of material from various larger size fractions during the period.
The combined efforts currently underway are designed to support the continued advancement of objectives consistent with the recommendations of the updated NI43-101 Technical Report ("Updated Technical Report"), as filed by the Company on April 28, 2015, and to aid the Company in arriving at initial production decisions for the Project. The recovery of all rough diamonds to date are incidental to the ongoing commissioning and testing exercises performed at the Project.
The above-noted testing exercises and incidental recoveries do not form part of the Updated Technical Report and therefore no general grade, price, or quality determination is intended by the Company at this time due to the nature and purpose of the processing of this material.
