The company said it has implemented a revised development budget and schedule to commence underground kimberlite mining from the high-grade Upper K4 block at the Lace project in the first half of 2015.

During H1, the Lace processing plant was operated on tailings to make it ready for kimberlite processing, including the UK4 bulk test.

Diamond recoveries from tailings totaled 13,055 carats at an average recovered grade of 5.78 carats per hundred tons.

DiamondCorp CEO Paul Loudon said: "The period under review saw us move closer to our goal of commencing long-life underground kimberlite mining at the Lace mine.

"Our constant attention to mining and development costs, and emphasis on diamonds recovered rather than tons throughput, positions us well to generate outstanding returns for our shareholders when mining commences from the UK4 Block in the first half of 2015."

As of June end, the company had cash on hand of £7.31m.