The 1.2 million tons per annum Lace diamond recovery plant was also revamped during the period and was successfully commissioned post the period end.

DiamondCorp CEO Paul Loudon said that the period the company completed the finance package and commence development of the underground mine at Lace.

"The mine is expected to produce up to 500,000 carats of diamonds per annum for over 25 years commencing in the first half of 2015, and heralds the transition of DiamondCorp from explorer to diamond producer.

"The period also marks the commencement of a long-term association with Tiffany which allows the prestigious jewellery retailer access to a new supply of diamonds that meets its quality standards and allows for increased traceability from source to end-user," Loudon added.

DiamondCorp has posted a loss of £2.2m in the six-month period ended 30 June 2013, compared to a loss of £1.55m in the corresponding period last year.