What is the story about?
What's Happening?
Kazera Global, an investment company listed on AIM, has successfully recovered diamonds at its Deep Blue Minerals project in Alexander Bay, South Africa. This achievement follows the implementation of advanced diamond recovery technologies, including a pulsating jig and Flowsort technology. The company has processed 100 tons of in-field screened material, yielding approximately 45 carats of diamonds, which consist of 89 individual stones. This recovery rate is significantly higher than initial forecasts, marking a pivotal step towards establishing the project as a self-sustaining and cash-generative operation. The average diamond size recovered is about 0.5 carats, larger than the typical 0.4 carats in the region, which is expected to command a premium price per carat.
Why It's Important?
The improved diamond recovery at Kazera's Deep Blue Minerals project is crucial for the company's financial outlook, as it transitions the operation into a major revenue generator. The larger diamond sizes and higher recovery rates suggest increased profitability, with expected sales values per carat being approximately $100 higher than previously anticipated. This development not only strengthens Kazera's position in the diamond market but also enhances its ability to generate consistent revenue from its operations. The success of this project could serve as a model for other mining operations seeking to leverage technology for improved resource recovery.
What's Next?
Kazera Global plans to continue processing the substantial stockpile of diamond-bearing gravels, which are by-products of the Walviskop heavy mineral sands operation. This stockpile is regularly replenished through ongoing operations by Whale Head Minerals, Kazera's subsidiary. The company anticipates regular future diamond sales, which will further solidify its revenue stream. The on-site team is expected to maintain its efforts to maximize the potential of the diamond asset, ensuring sustained progress and profitability.
Beyond the Headlines
The use of advanced technology in diamond recovery highlights the potential for innovation in the mining industry. By investing in cutting-edge equipment, Kazera Global not only improves its operational efficiency but also sets a precedent for environmentally conscious and economically viable mining practices. This approach may influence other companies to adopt similar technologies, potentially leading to broader industry shifts towards sustainable resource extraction.
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