West African Diamonds (AIM: WAD) today released an update on the operations on its wholly owned Bomboko alluvial diamond mine in Guinea. The company said it has sold a 433 carat sample parcel of diamonds for USD 50,270, averaging USD 116 per carat. The largest 16.27 carat stone was sold for USD 1,000 per carat, with the remaining 416.73 carats sold for USD 34,000, or USD 80 per carat.
WAD’s management said they were pleased with the results of the sale.
“The price per carat from what was a spot sale of a small sample is most encouraging. Combining the carat value with the grade gives an economical return per tonne of gravel mined,” commented Executive Deputy Chairman James Campbell.
The production on WAD’s Bomboko mine started in April after the mine came on stream a month earlier. The resources of the mine are estimated at the level of 750,000 carats at grades up to 28 cpht. WAD is currently working on a tenfold increase in production from the current level of 3,500 tonnes per month with the expanded plant already being commissioned.
“We are moving quickly to expand production to 35,000 tonnes per month. All essential equipment is on-site and is currently being commissioned,” said Campbell.
The market responded to the sale results positively as the news helped WAD’s stock to a 5 percent increase today, continuing the surge that started last week and brought the price up from 3p to the current 5p per share. After a gradual decline WAD’s stock value started picking up in April and traded strongly in July and is currently at its highest since late April.
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