Gem Diamonds updates on resource estimates

Diamond producer Gem Diamonds has reported an increase in carats of 10 per cent at the Leteng resource base due to higher resource grade estimates, while the Leteng revenue estimate has increased by five per cent to an overall value of 2,839 dollars per carat.

The total resource base has been maintained at around 29m carats and the indicated portion of the total carat resource has been maintained at 62%.

The Ellendale resource base has reduced by 15% to 3.98m carats, but the overall revenue estimate has increased by 16%. The indicated resource revenue estimate has increased by 54%.

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The Ghaghoo resource base remains unchanged at 20.53m carats while the revenue estimate has increased by 16% to an overall value of $259 per carat.

The performance in terms of reduced diamond damage for Leteng's plant 3 has been revised up to a 9% increase in Leteng's revenue compared to 5% in the 2011 reserve statement.

An increase in diamond liberation for Leteng's plant 3 is expected to add a further 4% increase in Leteng's revenue, which had not been included in the 2011 reserve statement.

The share price rose 0.26% to 195.10p by 10:01.

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