StockMarketWire.com - BlueRock Diamonds' broke even at an operational level at Kareevlei in September but it warned that delays, caused primarily by rain, meant it was unlikely that it would achieve the same volumes this month.

It said production in September continued to improve, reaching 22,010 tonnes up from 20,929 tonnes in August.

And it said that as a result of the production achieved, the increased grade and the recent reduction in operating costs, its Kareevlei operations broke even in September at the operating level.

An update said: 'Production in early October has been disrupted by rain and, therefore production volumes in October may be somewhat lower than September.

'Nevertheless, the company remains on track to start processing the first of the Level 2 kimberlite in October, from which it expects a further improvement in grade.

'This Level 2 kimberlite production is not expected to be included in the October diamond tender, the results from which are expected at the end of October.'

The company also announced the appointment of Jock Robey as consultant geologist.

He worked for De Beers as a kimberlite petrologist specialising in kimberlite mapping logging and petrology.

BlueRock said that Robey, who consults to De Beers, Petra Diamonds and Gem Diamonds, would be advising the company on the development strategy for its current licence area at Kareevlei and on identifying and evaluating other suitable kimberlite opportunities to pursue.

Chief executive Adam Waugh said: 'I am delighted to say that as a result of the increased volumes and improved grade, we were able to break even at an operational level at Kareevlei in September.

'Although delays, caused primarily by rain, mean that we are unlikely to achieve the same volumes this October that we achieved in September, we still expect to start processing Level 2 kimberlite this month as planned, which we expect will yield higher grade than the Level 1 kimberlite processed to date.

'I am also very pleased to have Jock on board; his skills, expertise and past experience in the industry will be invaluable as we look to progress our Kareevlei licence area and explore opportunities going forward.'






At 9:54am: [LON:BRD] Bluerock Diamonds Plc Ord 1p share price was -0.05p at 1.9p



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